thjat doesnt exist in any market. promoton deals are common with a lot of products, also gamestop literally needs deals like this to survive in the digital transition.
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I suspect it's much less complicated than that. It's probably a fixed percentage of the average digital sales per user multiplied by their tracked console sales.
Its no different than Sony (or MS) buying shelf space which they've done for generations.
they are when they can easily stop carrying the consoles or giving very little shelf space to them. they aren't gonna like another company getting this kinda deal while they aren't. i'm only speaking of the big retailers as the smaller retailers ain't gonna be able to demand anything.
Serious question: how many people go to a store hesitating between Xbox and PS and will ask the seller what they should get ?
What legal justification is there that states that brick and mortar can't have revenue sharing/marketing agreements?
so for example (made up numbers) 5% of xsx are sold via gamestop, and they get 1%, they would just be given 0.05% of revenue?
It's very common for manufacturers to give retailers incentives to sell their products.
Likewise this is why the platform holders sell space on their store from pages, dashboard and YouTube channels. They are the retailers and publishers are trying to sell their products.
Games companies are paying for this marketing support to position their products at "eye level", often in the form of exclusives.
Welcome to capitalism baby.
Should probably sue all them stores for product placement as well.
How much did you freak when offered a free sample in a grocery store?
Or have a custom firmware version.
Waterstones used to have a similar partnership with Amazon for Kindle readers.
I'm a little surprised at how pure people apparently thought their retail shopping experiences were.
I don't really see fault with this, though. Something had to happen, and this might actually be a sustainable practice for Gamestop if the other manufacturers choose to join in.
I'd assume the big get here is going to be parents shopping for their kids/people shopping for their spouses or SOs. You know, "They want to play that new Call of Duty" or "We just got a new OLED and I want to get them something to play Madden at the highest quality!" Likewise it creates an incentive for Gamestop to carry stock of the Series S on an ongoing basis, which isn't bad. I don't see it really impacting anyone posting here, though.
I don't really see fault with this, though. Something had to happen, and this might actually be a sustainable practice for Gamestop if the other manufacturers choose to join in.
I'd assume the big get here is going to be parents shopping for their kids/people shopping for their spouses or SOs. You know, "They want to play that new Call of Duty" or "We just got a new OLED and I want to get them something to play Madden at the highest quality!" Likewise it creates an incentive for Gamestop to carry stock of the Series S on an ongoing basis, which isn't bad. I don't see it really impacting anyone posting here, though.
With the digital shift, I imagine that will be a growing number which MS won't want to share. They can give GS a set % on each digital sale from the tracked consoles. Signficantly less than normal retailer margin but better than zero.
With MS effectively taking over their systems, this isn't a hard thing for them to track.
I get that, I just don't think it really matters to Sony if gamestop isn't excited about selling the DE because they'll be selling PS5s like crack anyway.
They've limited allocations of the DE for a reason, and I don't think they'll have problems finding retailers for the limited stock
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My local EB in AU was plastered with PS5 posters and hanging banners around the pre-order timeframe. Don't recall seeing any such XBox promotion in there. Wondering if anything will change over here considering how much Playstation dominates the Aussie mindshare.
Parents with children under 12 do that all the time. Almost every time I go into GameStop I see a parent with a kid talking to people and getting sold stuff. GS be hocking used wiis and 360s like crazy
all it takes is "hey I'm looking for a console for my kid to play fortnite and COD". Right away they can either recommend a ps5 or a series S. Then the price difference is a huge factor for parents and boom
I have it on good authority that there are TONS of grandmas who end up at the store without a clear idea of what they're there to buy.
This isn't going to to save them but it will definitely give MS a slight boost for anyone that does still happen to shop at GameStop.
Like I said earlier, this isn't feasible. Retailers already get a markup on each console so it's in their best interests to carry them. Plus they make money lifetime from sales of games and accessories.
this GameStop deal is merely an incremental deal for what's likely to be a small percentage of digital revenue, probably in exchange for more storefront visibility, in-store marketing push and complete transition to MS solutions like Azure and Office.
All the Grandmas that many on this forum kept saying would be confused by the Series X and Series S naming.
Jokes aside, people walk into stores to get access to games. So a dad might walk into the store to buy a console for Minecraft or Fortnite.
There are tons of people who know nothing about games. I've seen it plenty of times just being in the store.
Hell my sister owns a wii. She came down to my house and say the wii u gamepad and thought it was a wii accessory.
I remember reading back in the day that profit margins on consoles (at release at least) was effectively $0 with retailers making their profits through game and accessory sales. Could be different today since there does not appear to be as much of a push for bundles nowadays.
I don't think this is based on the original purchaser's digital revenue but just a percent of the total digital revenue made from purchases on the Xbox store.
When I worked at a GameStop in 2003ish I legit had parents come in and ask questions like that.
There's a difference between going to Microsoft store and expecting them to only talk about XBox and going to GameStop/Target/Game/Whatever and them only pushing one platform for their own benefit.
That's why I used the grocery store (GameStop) analogy where this stuff has been commonplace forever. Do you think you aren't going to be able to buy another brand's products at GameStop now?
<3me at the store
I think there must be some sort of code embedded in Xbox consoles sold by Gamestop, kind of like an affiliate link within the digital store, that tells the servers that this is a Gamestop Xbox and so Gamestop gets a cut of all the digital sales made on it.
Target doesn't care who buys which video game. They barely give an aisle to video games now anyway.
Reminds me of when Bill Gates appeared on the screen behind Jobs when they bailed out Apple. Just the vibe I get and I like it.
Talking? Pushing?
Are you upset about which product a store is going to try to sell over others? Seriously?
Do you get angry at store coupons for 75 cents off a 12-pack of 7-up, with an end aisle placement because Pepsi doesn't get the same promotion?
LMAO, retailers like push specific brands more than others no matter the type of product. There is nothing illegal about this and if anything I hope it succeeds because Gamestop shutting it's doors would be terrible.
Yeah this is getting ridiculous.
A lot of parents, I'd imagine. You put an Xbox Series S and a PS5D next to each other but give the Xbox more prominent displays and make a bigger deal about the price difference and folks who don't give a damn about what platform their kids play Minecraft on will just grab an Xbox.
That's really not much different from the pre-digital age. They'd sell you the box with a low margin and then sell you games throughout its life, from which they'd get a decent cut on each of those sales. Obviously the difference here is they aren't involved in selling the followup goods, but I imagine their cut will also be much smaller. MS has a fair amount of room to play with though because the 30% they get from their digital sales is much more than they got on physical game royalties
