Gamestop is vilified for being the evil empire of games, controlling pricing and availability with an iron fist. Many think their top priority is to rip off the customer and see the management team as greedy beyond measure. I want to suggest that this is far from the case, and Gamestop is merely another corporation in the industry we all love.
I will analyze many of the criticisms leveled against the company and explain why they’re not fair. I will argue that you can criticize the game industry in general, but singling out Gamestop is unfair and unwarranted. (I realize I’m going to take a lot of crap for this one)
Does Gamestop really rip us off?
The chief complaint I hear from the gaming community is that Gamestop is ripping off customers with their pricing.
“They buy a game from the consumer for pennies on the dollar and then turn around and resell it for only $5 less than a new game. Gamestop isn’t like any normal company looking out for their customers and building goodwill, they just want to use you and lose you. They’re screwing both the developers and us, the consumer!” Sound familiar?
When we get into real financial statistics, however, it quickly becomes apparent this isn’t accurate. Let’s compare Gamestop to a company like Apple which has huge customer loyalty and is generally thought of as a company that does ‘the right thing,’ and has a target demographic that overlaps with Gamestop. Apple’s operating margins are 21%. Gamestop? 8%. Apple is making over 2.5x the profit as a percentage of sales in comparison with Gamestop.
[The pictures start here and I couldn’t really get them to transfer correctly – so if you’re at all interested check out the rest … I go into how Gamestop adds value, how they help out consumers in a couple ways and how there are better targets for us to hate. I just didn’t want to spam you guys with a wall of text if you didn’t care and just wanted to respond to the headline.] Thoughts?