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May 24th, 2010, 06:04 GMT · By

GameStop Does Not Think Online Passes Will Impact Sales

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Electronic Arts is satisfied with its Ten Dollar Project and will introduce the Online Pass, which will charge used game buyers 10 dollars in order to allow them access to the multiplayer features of EA Sports titles. Ubisoft is watching from the margins and doing something similar. But despite all the heat coming down on used games sales, specialist retailer GameStop, which makes quite a bit of money buying used games and reselling them, says it will not feel an impact from these initiatives.

Talking about the limitations that publishers are aiming to place on second hand games, Dan DeMatteo, who is the Chief Executive Officer of retailer GameStop, told investors, “We see that as extending the life of titles and broadening the base of players. We do not anticipate an impact to our used game margins.”

Mr. DeMatteo went on to say that the kind of gamers who shop in the locations he manages are better prepared than others, “GameStop consumers are ahead of the mass market in digital adoption. Our investments in proprietary point-of-sale tech have put us in a position to partner with publishers as they grow their digital offerings.”

The CEO offered an example, stating that when the Stimulus Package was launched for Call of Duty: Modern Warfare 2, GameStop managed to sell quite a lot more points cards for the Xbox Live service. It seems that offering all the content for a videogame in the same location can make a difference when it comes to how gamers spend their money.

Electronic Arts is hoping the Online Pass concept will entice players to get more of their Madden NFL and FIFA new, giving more money to the publisher and developer, while also creating a revenue stream for those who get the game second hand and will pay 10 dollars to get into multiplayer. The quarterly results for GameStop in about six months will indicate how the Online Pass is impacting sales.

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READER COMMENTS:


Comment #1 by: skip jones on 18 Aug 2010, 16:02 UTC reply to this comment

Hmmm. I have read many articles on this subject, but it seems that there is either massive
ignorance by retailers that sell pre-owned games (or even rent them "Blockbuster"), or there is
some serious denial afoot. Does anybody see the inevitable not too distant future?

The Trojan Horse

1. Xbox live arrives and gamers around the world song and dance. Life is good. But are people
willing to pay for multiplayer online play? After all, they have gamed on thier PC's for years
at no cost. (Blizzards WoW kinda showed that there is promise).

2. 4-5 years later Xbox Live is unstoppable. The Xbox Live marketplace is making money hand
over fist with thier questionable "Microsoft Points" monetary system. Millions of gamers
can't get enough of the expierience. Potential DLC sales are not even close to peaking.

3. Behind closed doors, publishers are cursing the used videogame market and all it stands
for. Years ago, retail stores purchased thosands of cartridges and disks every single month
for eager gamers to buy. Since there was no trade in program for gamers, publishers raked
in the loot! But NOW it's changed. The industry longs for "The Good 'OL Days!"

4. The used game market preys on the weak gamers who will trade in 25 of thier used games
in order to get the new "recycled for yet another year" Madden Football. (That was SLIGHTLY
exaggerated, but you get my point.) Oh, and they paid $60 a pop for the 25 games they just traded in, only to find them marked down $5 less than the retail price the next day and placed on the store shelves. Amazing.

5. Sony has the master plan. They 1-up the PC market which currently REQUIRES online activation for nearly ALL new games. Sony releases the PSP GO, a diskless handheld that
eliminates the need for a retail store PERIOD as a distributor. After all, why bother to go to
EB Gamestop to purchase a game card for a digital download with a credit card? Just use
your credit card from the couch of your game room and buy direct from Sony! Duh!

6. Both the PC and PSP markets have been effectively KILLED in EB Gamestop. If you don't
belive me, go in any store right now and check the inventory for either types of software, mainly new product. Oh, and ask to buy a used PC game. Then have them explain why this is not
possible for anything released in the last couple of years.

7. EA is a little more patient than Sony at this time. Fully aware that not all homes have the
necessary "High speed internet" just yet, they are crunching the numbers even as we speak.
But if enough people purchase DLC and the numbers show that on-line gamers alone can carry the load of profits for them, they will IMMEDIATELY go digital download only. Heres why:

a. We won.t need to pay UPS shipping.
b. We don't have to pay for packaging our product.
c. We don't have to pay to press any disks anymore.
d. EB Gamestop can't "RESELL" our product anymore.
e. We can charge what we want, even for older games.
f. We can now charge for features in the game that used to be free.
g. We can ship unfinished games, and patch them later.
h. You can only buy it from us, the publishers.

Simply put, the Trojan Horse rode in on Xbox Live. Straight into your homes. You added fuel
to the fire buy making LIVE so popular. Now that so many can't survive without Xbox Live,
they have you right where they want you.

Skip Jones simply saying EB-Gamestop, your days ARE numbered. We know it even if you
don't. Only a fool couln't see this coming.

Done!

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