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Post by lockejv on Apr 24, 2007 9:45:36 GMT -5
On the way into work this morning, I thought it'd be cool to own a GameStop franchise. Now that would be a great job! Hell, give me two or three stores! So the first thing I did when I got to work was look up franchise info for GameStop. They don't offer a franchise program, they're 100% corporate >< Not that I have a clue where I'd get the cash to purchase a franchise. NickRhodes maybe? So I poked around a little bit more, and found this killer article from an indy video game retailer who runs a store in New Jersey. It's an outstanding read, and glimpse into the reality of retail in the game industry. www.next-gen.biz/index.php?option=com_content&task=view&id=150&Itemid=2
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Post by lockejv on Apr 24, 2007 10:03:24 GMT -5
Just doing a little more thinking... You figure when the next generation of consoles comes out, all the games will be downloadable. What impact will this have on stores? Well, people buy strategy guides even though there's more info online. You can't download a controller (but you can buy it from an online store). You can sell used game discs, but you can't sell a game you download. Like the guy in the article says, new titles are almost a losing proposition anyways - not much profit margin. GameStop Est. Annual Sales: $3,091,783,000 Holy bajesus, that's a lot of sales. Tough to compete against them. Richard Fontaine runs the show. Got a 1.1 million dollar bonus last year on top of a 650k salary - rofl. 650k = 54,000 a month; I think that would cover my rent!
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Post by tempus on Apr 24, 2007 11:32:37 GMT -5
lol You could have just asked me, I cant quote exact numbers, but remember I sold vidoegames for 9 1/2 years... And unfortunately, like any business these days, profit goes to the corporate run chains, not the independents. And even in the chains, there is little profit on new.
Oh btw, look up hollywoodvideo and game crazy. Hollywood video is the 2nd largest video rental chain in the US, and they have opened up a new/used videogame spinoff. The eventual goal is a Game Crazy store attached to about 1/2 of all the Hollywood Video locations. They do basically the same thing that Gamestop does, just newer chain.
-t
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Post by Cydian on Apr 24, 2007 22:36:20 GMT -5
I work at an electronics store here in Canada, and looking at the cost of videogames it is totally shocking how gamestop can make that much money in one year. Wii retails for $279.99 here in Canada and the cost on it is $263.25 per unit.. 360 retails for $499.99 and the cost on it is $477.10 Games as well carry approx a 5-10% markup only..that is not much at all I think that most of the money in those stores has to be made on accessories and stuff like that with obscene markups. I am not sure if this is the situation with Gamestop because I am sure they buy in bulk compared to stores like Best Buy / Circuit City..I work for a Circuit City and have checked into Best Buys costs and thats the numbers I get. I have always wanted to work in a videogame store..my dream
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Post by Sosa on Apr 24, 2007 22:51:35 GMT -5
I had dreams about opening up a venue as a gaming/hobby shop, but reading that is a real eye-opener. A bit depressing, but enlightening nonetheless.
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Post by lockejv on Apr 25, 2007 1:01:04 GMT -5
I worked at a Video Game / Video Rental store called Video Factory / Zappers. It was a blast. It was '95-96ish for about a year. Although I was only making minimum wage ($4.25 ftw), like I said, it was a riot. Looking back, I miss the fun I had then more than any other times...well except a girl I dated for a couple years before that.
Anyhow...I left because I was offered a job doing Quality Control in the plant for the largest arcade game manufacturer in the US. They do mostly ticket redemption games, and they're still around, called ICE. I did about 2 years there before I quit and went to day school to finish my bachelors.
GameStop didn't make 3 billion in profits - that's just 3 billion in sales. You could easily look up their latest annual report to see exactly what they're making. I'll probably go ahead and do that tomorrow. But it's 2AM and I should be sleeping ><
Oh, I had lunch with a guy today who said he would be interested in opening up a Game Crazy franchise with me. I thought that was pretty funny. I guess we have two of them in Buffalo and I didn't even know - never even heard of them. I did a quick google of Hollywood Video (owns Game Crazy, I think) but I couldn't find any corporate info on them, so I don't know if they franchise. Will look for more info tomorrow.
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Post by Cydian on Apr 26, 2007 21:15:26 GMT -5
I think I'd still like to do it only because it is what I love, I mean not only would my free time be videogames but so would my work time..thats a great dream.
But here in Canada the industry seems to center around EB games and Best Buy locations. It is pretty difficult for a non-corporate business to thrive in this field. I believe there is one in my area named "Game Galaxy" a local store that is going strong because...
A) they repair old systems B) they charge for customers to play console games (almost like a internet lounge)
That is stuff that to my knowledge EB and Best Buy do not do here..
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Post by Sosa on Apr 27, 2007 0:46:33 GMT -5
That's exactly the kind of place I've always dreamed of opening, and for mostly the same reasons. For better or worse, gaming is my life. I've been doing it since I was like 6, and I've been doing it ever since.
I can't imagine being happier than doing what I love every day. I've always wanted to open a gaming/hobby shop, and turn it into the kind of place where there are always people there. Weekly tournaments, sponsership for game sessions, ect.
I have the business sense, researching skills and determination to make it work, but alas, I will probably never really have the financial backing. And... going up against the giant EB/GameStop conglomerate is a very scary thing indeed. The only way you could really compete with them is by making your place totally different... the kind of place people want to hang out, and you can build customer loyalty.
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Post by lockejv on Apr 27, 2007 12:16:54 GMT -5
I've always wanted to open a gaming/hobby shop, and turn it into the kind of place where there are always people there. Weekly tournaments, sponsership for game sessions, ect. I will probably never really have the financial backing. And... going up against the giant EB/GameStop conglomerate is a very scary thing indeed. The only way you could really compete with them is by making your place totally different... the kind of place people want to hang out, and you can build customer loyalty. Don't sell yourself short. You don't need a lot of money to get started. Look at your average comic book or baseball card shop - they get by just fine. The talented, bright and passionate dealers / shop owners rise through the ranks, take over the territory and end up with some kick-ass stores that turn six figure profits each year. The successful dealers aren't your average Joe's, though. They are professionals who could be successful at anything they choose due to their smarts and work ethic. The burn-out running the comic shack down the street will never be anything more. The bright clean-cut kid who got his four year in business administration and is constantly seeking to expand his market, who works closely with his vendors, who seeks out opportunities to get to know promoters and writers, who participates and organizes local events...that's someone who people will take seriously. A person like that can start out small and make a respectable career for themselves. A person like that can be the go-to guy for the corporate conglomarates wanting to push their products in a new territory. At least, this is how it works for the sports cards / memorabilia and comic book industries. The video game industry isn't really much different, though - a lot of parallels. It's really just starting to mature. The kids who grew up playing the first generation of games in the 80's are now in their 30's working jobs and have money to spend. They are also getting jobs in the popular media, which has traditionally written off gaming as a form of entertainment only for dorks; there is increasing media respect for the industry.
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Post by Sosa on Apr 27, 2007 12:30:00 GMT -5
If there's one thing in life that FFXI has taught me...
...it's that I can accomplish anything I want to, short of getting a damned Joyeuse. -_-;;
Seriously though, I haven't just given up on it. It's not something I could plausibly do at any time in the near future, but it's a dream I'll definitely hold onto. Who knows what the market will look like in the next two or three console generations?
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Post by Tarick on Apr 27, 2007 17:22:24 GMT -5
Don't sell yourself short. You're a tremendous slouch.
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