Top
1000°

GameStop Gets a Piece of All Digital Revenue from Xboxes They Sell Under New Partnership

Under their new partnership GameStop will get a cut of all digital revenue produced by the Xboxes they sell.

The story is too old to be commented.
RazzerRedux48d ago

So Microsoft is paying GameStop to push Xbox consoles now?

potatoseal48d ago

The store is called XboxStop now.

SullysCigar48d ago

They've always pushed Xbox in my experience. Same with GAME in UK. I've seen them actively talking parents out of PS4.

I'm assuming they've checked all this out with competition/antitrust laws to make sure it's permitted...That doesn't make it palettable.

S2Killinit48d ago (Edited 48d ago )

Well it makes perfect sense. MS has a console that is not really next gen (series S), this console is realistically only appealing to the casual gamer/parents who simply want to pay a little less. If MS doesnt actively have employees push this device, any SAINE employee would let potentual customers know that its not wise to buy the Series S when you can have so much more with an additional cost of a game and a half.

I would say this is a forced move by MS since the Series S isnt working out for them.

crazyCoconuts48d ago

And MS closed their own stores not too long ago. I guess money better spent in subversion vs. selling products on their own merit. Seems like a fitting partnership for them in my book.

Rockstar48d ago

@Sully

I've said that previously but got quite a few disagrees. I see I'm not the only one to have that experience

bouzebbal48d ago

That's so pitiful.. This brand is really a disgrace. worst part is, they'll crash miserably once again

PertySlick48d ago

@SullysCigar That's interesting. My experience is the opposite. All my GameStops are operated by hardcore Sony fanboys. I am curious to see how much they are going to "fall in line" with all of this.

UltraNova47d ago

Next up: MS buys GameStop, rebrands it to MS(or Xbox) store.

If you can't beat them, buyem!

+ Show (4) more repliesLast reply 47d ago
UnSelf48d ago

Prepared to be harassed at the register by GS employees trying to tack on tacky Xbox digital treats. They used to want your phone number. Now theyre gonna want your gamertag

48d ago
TheOtherMoon47d ago

Ok...who on this site is still going to Gamestop? Really? Most of the goons on this site complain about DMR while digitally downloading their entire gaming catalogue onto a console they ordered from Amazon.

Christopher48d ago

I mean, with their partnership, wasn't this to be expected? GameStop needs to survive (though, I don't see the long game here since they become useless at a certain point of market reach) and Microsoft wants to have retail promotion of their hardware and digital services.

Hakuoro48d ago

It's a good thing they don't pay websites to promote them and discourage people from buying PlayStations.

Clearly Microsoft is above that type market manipulation.

Christopher48d ago (Edited 48d ago )

@Hakuoro: Are we upset that this deal is very public or just trying to make every website that says something positive about Xbox must be paid on the down-low? I'd rather deal in the known than the conspiracies.

Hakuoro48d ago

Christopher,

Business deals like this are far more regulated than giving gifts or making large advertising deals with websites. And it wasn't Microsoft that revealed this it was DOMO Capital Management, LLC

RazzerRedux48d ago

"I mean, with their partnership, wasn't this to be expected? "

I didn't expect it at this level, no. It will be interesting to see how far this goes. Down to the level of quotas or commission for GameStop employees to push Xbox? GameStop has had shady practices in the past so I'm curious how vigorously they will try to exploit this lifeline Microsoft is throwing them. I also wonder how much PS consumer backlash there will be as GameStop has effectively become a marketing arm and retailer for Xbox. This is great for MS, but, like you, I question the long term game for GameStop (not that their long term game was very good either way).

48d ago
morganfell48d ago (Edited 48d ago )

@Christopher,

It was expected. Not sure who didn’t see this coming but apparently some people are shocked. My only surprise is it took this long to become public. At the end of the day it’s just business.

Hakuoro48d ago

Does anyone think Microsoft ever cuts deals for their Azure web services in exchange for preferential coverage from popular websites?

crazyCoconuts48d ago

It's all just business, I get that. But it's telling to see HOW a company does business, and we can choose to respect one way over another. Like, I respect Disney because I went there and was blown away by their "product", not because some sleezy travel agent talked me into it. If I thought Xbox's product stood on its own I'd probably find this less distasteful. I do hope the good guys win in the end (again)☺️

Atom66648d ago

Seems to be counter to what a few people thought just a couple of days ago.

https://n4g.com/news/237781...

No shock from me. No conspiracies needed, either. They are openly saying: here's the deal. Think of where we came from with Nintendo back in the 80s, strongarming their way to dominate retail.

This is a shrewd but smart move from MS. I do wonder if Reggie had a part in it. But it's at least transparent and legal.

And to the conspiracy fans, pretend you're MS and do a cost-benefit analysis on your claims: "Bribe" fringe gaming sites with barely enough traffic to even register in order to gain "positive press" vs. the cost of running afoul of FTC guidelines re: endorsements and truthful advertising.

Which do you think MS would do?

RgR48d ago

Well companies will never outright confirm foul play on their part ...so yea ...many things are called conspiracies but it doesn't make them false. If you dig deep enough some so called conspiracies are plainly and factually true but said info is not easily found, even on the internet.

RazzerRedux48d ago

@Atom666

I agree with much of what you say. I don't see any grand conspiracy or illegal shenanigans here. But this was not transparent. Transparent is when Microsoft and/or GameStop reveal these details. They did not. That's not a bad thing either. Most details of deals like these are not public. That's fine too.

dcbronco48d ago

Game stop has needed a change for years. I've always believed they should act as a hub where you can get a high speed download of your digital purchases. This puts them in line to act as a service for those with slower connections or caps. They should also look into getting a series of temporary licenses where they turn in those tons of unsold previous generation games for the right to do digital rentals. They could have a membership service where you can rent games as long as you have a membership or for a limited time. But most CEOs are borderline so they just grab profits and never consider new ways of creating revenue.

+ Show (9) more repliesLast reply 48d ago
ZeroBlue248d ago

MS parterning with another sinking ship.

Golfcoachh48d ago

I work in the golf business, no different than Callaway paying my sales guys a spiff to push their product.

DiRtY48d ago

GameStop will use Azure and surface Tablets and actually get a great IT Infrastructure for their stores and employees, so they will pay Microsoft for it.

This is one way to get a partially return on their investments.

On the other hand MS might sell a few more Xbox consoles.

Classic Win / Win for both companies.

morganfell48d ago

Not sure why the disagrees. It’s simple fact.

Hakuoro48d ago

"This is one way to get a partially return on their investments."

I disagreed with this.

Microsoft is paying GameStop after they gave them a bunch of hardware and services. GameStop should be the one paying Microsoft a larger share of it's console sales not the other way around.

This is a highly unusual arrangement.

S2Killinit48d ago (Edited 48d ago )

True. Although the percentage of the royalties will be very important. I can see this potentially being very healthy for Gamestop. On the other hand, Gamestop’s troubles may mean MS had the upper hand.

Muzikguy48d ago

Glad I don't go there anymore

HyperMoused48d ago

Never seen an EB employee talk someone into one console over another

343_Guilty_Spark48d ago

You take issue with this? Win win. GameStop sells used games, gamers are increasingly going digital...this might alleviate some of the bleeding until they develop a new business model.

RazzerRedux48d ago

lol...is there anything Microsoft could do that you would take issue with? Nope.

Go back to sleep.

343_Guilty_Spark47d ago

Yeah getting rid of Gamepass and putting Halo on PlayStation.

itsmebryan47d ago

MS latest moves proves all the people wrong who said MS didn't care about xbox or that MS was giving up on Xbox.

thornh47d ago

That's exactly what it sounds like. Good old MS. Pay to win.

NeoGamer23247d ago

Yup they are. And people should be ok with that.

As much as I hate GameStop. (And I really do hate them)

They are a brick and mortar games store that employs a lot of people. Having them see revenues from digital will help them stay open (hopefully) and keep many (probably not all) employed. I like that gaming has a dedicated presence at retail even if I don't really shop there myself.

wiz719147d ago

Granted GameStop was going into the hole. Y’all acting like they only going to sell Xboxes. At lease GameStop have a way to remain in business, idk how anybody can spin this into a negative.

+ Show (12) more repliesLast reply 47d ago
nickanasty20648d ago (Edited 48d ago )

Not a bad idea considering most retailers are not buying digital consoles, because it makes them obsolete. I am personally against digital consoles because it is making my physical media obsolete and also stops driving competition on digital store fronts, but still gotta call out a smart move when i see one.

Father__Merrin48d ago

Reminds me gamestation in UK when ps360 were out I can recall the employees always claiming they sold Thier ps3s and tried to push Xboxes.

This will be the case here now in GameStop

aaronaton48d ago

I remember GAME staff laughing at me when i said i wanted a PS3 over a 360, and telling me i was making a bad decision....

phoenixwing48d ago

ps3 was the logical choice for me even at the 600 dollar price tag. it had free online

Melankolis47d ago

I really hate that kind of Staff. In any product category. Especially in gaming. They tried to convince me otherwise with all their explanation and i have to cut them, "look...i know what i am buying..."

Edgelordsupreme48d ago ShowReplies(1)
JEECE48d ago

Yeah from launch until about 2009 when I'd go into GameStop to buy a PS3 game they'd act like I was speaking a foreign language. Although I never thought it was anything shady on MS's part, I just knew it was because they were nubs.

System_Call48d ago

So they are an xbox store now.

48d ago Replies(1)
BLAKHOODe48d ago

I see this partnership as a win-win. More so for Microsoft, as it's their products that's going to be pushed directly to the gamers that still shop at GameStop. It's a small boost to keep GameStop going alittle longer, but it's only a matter of time...and I'm sure Microsoft and GameStop both know it.. that GameStop will go bankrupt. So, Microsoft is using them while they can. Good for them.

Baza48d ago

Too bad no one buys games from there any more lol. This partnership is meaningless

BLAKHOODe48d ago

For the most part, yea. GameStop employees are not going to convince PlayStation fans to switch sides. They could probably persuade undecided and ignorant buyers to choose Xbox over PlayStation, tho, but it'll hardly have an impact on sales.

S2Killinit48d ago (Edited 48d ago )

I do. Always have. I like the specialized environment. Dont like being pushed though. Being a mainly PlayStation gamer, the level to which they push me will dictate whether I continue to buy my PS5 products from them or not.

RgR48d ago

I'm getting my next gen console and used games there.

kneon48d ago

I can count on one hand the times I've been in one of their stores, with fingers left over

rockwhynot48d ago

@ RgR Yea I appreciate as well that they're keeping used games going strong.

+ Show (4) more repliesLast reply 48d ago
blacktiger48d ago

NO NOT really, Microsoft have to give their cut forever!