Pachter says Best Buy's new games at used prices program will fail

Joystiq writes.... Best Buy surprised the gaming public last week with the revelation that it was testing a new pricing program that would see the retailer selling new games at used prices. Specifically, the test store in Utah will match the used game prices of both GameStop and Game Crazy. According to Wedbush Morgan analyst Michael Pachter, the program isn't likely to last very long.

[kapedkrusader]

...and why do people care what he thinks?!

[LONEWOLF231]

He is a dumb *** wannabe know it all that does gaming industry predictions. He always fails at it though.

[Kushan]

To be fair if you actually read the article, he's not so much "predicting" anything as using some common sense.

[gintoki777]

Pachter = fail

[GameGambits]

Why the massive hate on the Pach attack?

I find him entertaining on the Bonus Rounds. The last one with him was hilarious on how he wants to use that new Nintendo Heart monitor to put his penis into it to see the readings. He also said it might be used to see if someone is Gay or not and then made an awesome joke saying he'd use it on his son to figure out if he should love him or kick him out of the house.

It was all jokes, but man I was laughing really hard. He can predict all he wants what does it hurt you? I'm sure you all have predictions on tons of sh*t you don't know squat about in the gaming business. At least he isn't posting on N4G like Hiphopgamer with ? articles and pure flamebait BS.

Pach attack is fine and there's no reason to hate. He doesn't effect anyone or anything.

[FamilyGuy]

How could...

This dudes an idiot. So they're charging $5 less, amazon.com has been doing this for a looong time now so it obviously won't hurt the retailer. This guy needs to go.

I think retailers make a lot more than $10 profit per new game sale too, more like $20 - $35 as we see sale prices get as low as $30 and a retailer wouldn't sell a game at a loss unless it was on clearance.

That said, BestBuy COULD go as low as $30 for a new game if gamestop/others are willing to challenge them that far. Though i doubt it, they'd more likely keep their prices high and not challenge and make their high profit on the people who don't know about what BestBuy is doing.

Gamestop hasn't lowered their used game prices because of amazon so why would they now? And Amazon is $5 less, tax free, and you can choose the free shipping offer making it much less (because of the tax) than a $55 used game at gamestop or gamecrazy.

Gamestop doesnt care and that's why pachter is wrong.

[Poopface the 2nd]

Id much rather get a new game than used. Especially if it means not going to Gamestop.

GS barley drops the price anyways. The difference between new and used at gamestop is usually 5$. If anything this will force EB to drop the prices of used games. That would be good too but I doubt GS will do anything worth going there for.

[2Negative]

Will Best Buy lose money per game sale. Most likely yes but if you know how Best Buy does things you might know that this is similar to what they did with CDs. They charge a lower price on them losing a bit of money on CDs but they used the cheap CD prices to get people in the store, then allot of people would leave with much more then a CD. Now that CD sales are tanking Best Buy is using video games to fill in as the cheap item that gets people to come into the store. They don't mind losing money on games because a good amount of people are going to come in for a game and walk out with a game + TV + computer + stereo system, etc.

[FamilyGuy]

^ Are you crazy? BestBuy isn't a friggin GROCERY STORE, which is a place that uses the common tactic that you're describing.
People don't buy tv and stereo system on a whim just because they're there. I don't know where you got that logic but no, a guy going into bestbuy for a cheap cd might also buy something like, ANOTHER cd, or a movie or a game but not a television.

They make MORE than $10 profit per game, where does this number even come from, seems as though pachter pulled it straight out his retum like most of his prediction.

[Saaking]

I predict Patchter is going to fail....again.

[-Mezzo-]

Yet Again.

[Nitrowolf2]

how is amazon doing? they have been doing this for years and are still. The program will work if best buy throws it out there. Plus i am sure that there must be some sort of agreement that best buy has with another that allows them to do this and still make profit (im talking about in the gaming area not the whole store itself)
oh and this is just testing it so it can go either way anyway. But if this test is succeful and best buy decides to expand they need to market this and put some pressure on gamestop. Everytime i enter BB i always see sweet ads. They nned to put a banner right at the entrance or something.

Plus this is patcher he always fails.

[f789790]

Plus there are no shipping fees.

Getting a new game for $52.99 with no shipping or tax rocks! That's $10 saved.

[d_dogg2007]

man life was so good when we werent hearing about this guy. He's not on the bonus round, hasn't made a prediction in a while and things were really good not hearing about him. Now here he rears his ugly head again and predicts sh*t that he probably is wrong on. PLease patcher or however posts these lousy articles leave us the f*ck alone we don't care.

[poindat]

Best Buy's program is going to be a massive success.

:D

[-Mezzo-]

LOL.

[FadeToBlack]

This guy is a moron

[FadeToBlack]

whoever disageed with me you fail

[f789790]

Pachter has never said anything intelligent.

[RememberThe357]

Judging by how Patcher's past predictions.

[mirroredderorrim]

Patcher?

Moving on. No hit from this I.P

[forgot my password]

i'm guessing that gamestop payed him to say that dumb sht.

[iceman2885]

Pachter's assessment is a joke.

I've only got like 2 years of econ classes in my live but I know that Pachter's assessment that Gamestop will cut the prices on used games to the point that Best Buy won't match them is hilarious.

Why you ask? It's because while Gamestop can cut the prices on it's used games, Best Buy can match them because they have alternate sources of income (pretty much everything electronic), whereas Gamestop has ripping off gamers (and developers alike) with their used game program as their main source of income.

So you tell me, who loses out (and buckles first) when Gamestop cuts prices on used game to try and undermine best buy's program....Gamestop who relies solely on video games, or Best Buy who has like 80 different markets (where video games are actually a pretty small part of it).

[wquach]

Bubbles.

The success of Best Buy's program depends on how much they advertise it and really push it so that consumers/gamers who unfortunately shop at GameStop (I say unfortunately because I hate everything about GameStop and its business practices) are aware of it.

If the program is only known to gamers who follow games news strories regularly like N4Gers, then it sure as hell won't make much of an impact. But if it's posted all over their gaming section or even the front of Best Buys (or in their ads) weekly, people will sooner or later take notice.

Its about time f***in' GameStop had more competition...and time they change how they treat their customers, pricing, and handling of games.

I'm just annoyed that all the Collector's Editions and promotional bonuses/pre-order goods promote GameStop and are typically only available through them. Granted, I almost never buy a game full retail immediately, let alone a special edition, but I'd much rather give my money to Best Buy over them any day for an actual "new" copy, not some gutted, stickered, already-played-by-employees crap.

[christian hour]

Not sure if its the same in the rest of europe, But since around feb-march videogame stores here in Ireland; game, gamestop, xtragame, hmv etc, have been selling new games for 40-50 euro, instead of the previous 60-75 euro. This basically sounds like what best buy are plannin to do, since pre-owned games before the price drop here were around 40-50 euro :P I saw them charge 70 euro for a pre-owned left4dead in gamestop a week after it came out, went to the new games and it was been sold brand new for 65 :P wtf? haha.

Anyways I've been overjoyed with the price drop over here, hope you guys get a slice of the action.

40-50 euro is like 70 dollars at this point... damn we're still been ripped off :P

[Tins23]

I agree that every store needs competition.m But what happens to your trade in values when stores start lowering prices? they are going to go completely down the shi**er. Some people (not all) seem to think they should get 50 dollars for a new game trade in and then see it on the shelf for 30 dollars. What is the sense of any company giving more and selling for less. The one thing that annoys me about this industry is the constant whining that used games hurt the business cause they don't get paid for it. I bought it with my money i can do what with it what i want. Under their logic...if i personally sell a game to a friend..am i supposed to call them up and give them their share? what hurts the industry is the millions of illegal copies being sold and distributed on the internet.

[christian hour]

Well I don't think people should expect to get 50 when they trade in a game. But the problem people have with the trade in system, at least, the problem I have with it anyways, not sure how it is in america, bu over here the most I've ever gotten for a game was 15 euro, and that was trading in two worlds and I'd only playe it once, special edition too.was an unwanted xmas gift :P

But yeah I was in there a week later and they had two copies of the SE of two worlds on the pre-owned shelf and they wer selling them for 60 euro. 70 brand new. thats a profit of 400%. I think thats a bit too much. But most other times I'll get a tenner, for skate I got 2.50 once. And I've never seen a pre-owned game been sold lower than 30 euro. Thats my problem with the trade in system anyways.

I wasnt aware some people thought they should get 50 for a game though... thats nuts. Those people need to be thrown to the lions or something. You got any lions we can throw em to Tins?

[MajestieBeast]

i hate him in the bonus round well pretty much everywhere on gametrailers. Suddenly this guy gets some publicity and he wont shut the f*ck up nobody cares what he thinks he is always wrong he has never ever said something with substance. How does this guy have a job my grandma of 90 would do better predictions then this guy. Its like he flips a coin and always fails.

[Goomba12]

How does Pachter not understand that the public likes a good deal? And Best Buy's new program looks to be just that.

[-Mezzo-]

Agreed.

[mcgrawgamer]

well thanks pacther now I know to invest in some best by stock cuz everything he says turns out to be the exact opposite then he'll get a report a few days before said company post their results and he'll change his stance on the subject before said companies results are shared with the AP and general public.

[Dringostarr]

I hate Pachter.

I don't mind him having opinions... hell, he's educated to some extent. But the fact is, he uses the media, says outlandish things, in order to get more retail and publisher clients.

He uses the games press for his own glorious PR vehicle. I love that certain websites refuse to cover Pachter stories for this very reason.

[MrEko]

A brand new game from a distributor can net less than $10.00 per game. Why? Well, for one, you have to buy from a distributor. You cant get purchase new copies of say "Call of Duty" straight from Activision. The distributor buys in bulk, then they sell in bulk to various stores. And Believe me- Distributors are gonna get their cut.

A new, AAA title on Day 1 will cost between 50-52 dollars for the stores. The stores are willing to pay the price because either A) They have many copies of a game and it brings you to their store to buy other items (i.e. Wal-Mart, Best Buy) or B) They want you to come to their store so they can get you to purchase their used merchandise (i.e. GameStop, Game Crazy).

The games will quickly depreciate in value in just a few weeks. Especially, if that game is not moving. Then, the stores can buy new games for next to nothings.(For example, you can get new copies of "Velvet Assassin" for about $20.00 per copy from a distributor.) The Price always depends on the market.

On another note. stores make next to NOTHING on console sales. They just sell them in hopes you will continue to purchase the games from them.