My other option is to purchase both Xbox one and PS4 at launch, and buy all multi platform games on the PS4, and only purchasing gears of war and halo for Xbox one. That will workout for me, I can still sell my used PS4 games on eBay and get some money out of it to purchase other new or used Ps4 games.
Im not sure how you came to that conclusion...I think they can definitely survive selling used games. I think its in their best interest, specially if MS demands for the activation fee are reasonable. You're the one that came up with the 10% margins, so I was using that number in my example. Currently, as soon as a AAA game is out, Gamestop buys it for about $20 and sells it for $55. My guess is that the activation fee will be in the $10-15 dollar range. If that is the case, then Gamestop will still sell that game for $55, but instead of profiting $35 dollars on the transaction, they will profit $20-25 after they have paid the customers activation fee. I dont see the activation fee being that much higher, maybe $20...if that is the case, then it would be incredibly stupid for Gamestop to stay out of the used games market for XBox. And if the fee is in the neighborhood of $35 or more, then Xbox is stupid for implementing such a high price (and at that point, would be greedy).
I don't play online either. (Or offline much anymore) I'm looking at this AS the semi-gaming all around entertainment unit. How INTRUSIVE *and frightening* is physical DETECTION monitoring units INSIDE your OWN HOUSE. NO amount of game innovation, co-op experience and interactive entertainment is worth having even 10% "little brother". But maybe I have a hard enough time with even cellphone GPS location trackers. But just FORGET it lol, that thing isnt coming inside my living space.
Game consumers are loyal but arent THAT dumb. Its good that developers are getting their cut straight out the used game retailers. But they still need to have a LITTLE "negotiated agreement" with the direct game buyers. Simply, no we won't go to Gamestop at your insistence, and we won't try to recoup our own cost - BUT YOU need to bring down YOUR overall launch-time price to offset it SOMEWHAT. (And WE live with paying a LITTLE more each game, while YOU get MORE TOO, thats supposed to be the deal) But they're going greed mode. AND making it a tad cumbersome to even get the games to play. AND adding in some BODY SCANNING equipment with it lol. (Maybe all that was put in that "Se7en" gif, but I didnt watch it all). Yeah I'd say I'm a little disappointed in MS here.
The article cited the 10% number. I didn't come up with it. Just shows you are responding without reading. If you don't think Gamestop can survive on new games only which have a 20% margin, you can't expect them to survive on a 10% margin. Current profit margins for used products are 47%
You're missing the point...Gamestop already has everything in place, from space to employees. They are already fully operational. It doesnt take anything additional for them to continue selling the used games they have been selling for years. They can either make more money by selling used games (albeit at a lower profit margin)...or they can lose money by not selling used games. It all comes down to the activation fee that xbox imposes + simple mathematics. If Gamestop can buy a game for $20 bucks and sell it for $40...they profit. It's not that difficult.
F-ck this sh-t! I don't see how this even gets sold outside the US. https://encyclopediadramatica.se/File:Orwellian360.jpg
They would take a $20 profit, but we are talking that being a $2 profit. Employees and rent are not fixed costs longterm
Selling the used games does not need additional resources...the employees are already there and rent needs to be paid regardless. By selling Xbox One games, neither of those fixed costs increases more so than if they were not selling Xbox One games. There is zero additional cost (except paying the fee set my Xbox)...therefore, they still profit, but their margins are reduced drastically. Like I said, we can go on about this all day...but we can see what Gamestop will do once the Xbox One comes out.
You realize they can fire employees, and rent smaller spaces, correct? They can also use the space to better showcase other high markup items. Happens all the time in business. I'm sorry you don't understand business very well at all. If they had a 10% margin on used games last year, they would have lost hundreds of millions of dollars. Only incentive for Gamestop to have used XboxOne games is to avoid losing customers who would buy other games/merchandise. Gamestop's management will have difficult decisions to make.
Why would they rent smaller spaces? Its not like these games take up that much space. This isnt machinery we are talking about...its discs. What is carrying 1000 less discs going to do for them? Save them a total of 2 square feet? Yeah, lets downgrade size and move to a new location...that would be brilliant. I understand it very well...I own 2 businesses and working on opening a 3rd one. You clearly are failing to understand the difference between losing money and operating at a net loss...and losing money, yet still operating at a net gain. Again, it purely depends on Microsofts activation fee...but I would imagine that the price point will be in the $15 dollar range...and at that range, it would most definitely be an easy decision for Gamestop to continue selling those games. Gamestops days are numbered, but if only Xbox is doing this with used games, then its still in their best interest to move forward with that.
Not buying because of this Kinect 2.0 stuff. As a consumer the only thing that's stopping companies from implementing this kind of spy-watch tech is to not buy it. You buy it and you say "Cool! Watch my every move! I don't care!" If it had a simple turn off button then fine...but it doesn't apparently so nope. Not touching it.
Not sure what that has to do with anything. Discussing the Xbox One and some of it's silly features. Not sure what is the purpose of a camera that can't be turned off and needs to be on for the system to function?
You have a cell phone? Your carrier knows exactly where you are and have been... They can track you if you want modern convenience of a cell phone.
No one's location is private and that has hardly ever been the case. Where someone lives or where someone is at is not really information that should be private. Even so people that don't want to be found often get lost pretty easily as we've found out recently. What has and should always remain private is what people do in their homes. So why does the microphone remain on when the system is off? Again what is the purpose of this?
Does my phone watch me take a **** when I leave the bathroom door open to watch the end of King of the Hill on Nextflix?
