Is EB Games Bound to Close down?

SlavOz on 21/06/2022 - 12:12

I just can't see any way out for them. Their prices are absurd, their stores are usually empty, and general chains like Big W or Target can almost always beat them on stock and price. Their partnership with Zing might have bought them some time but I still don't understand how they're even covering their costs.

Are they just being backed by a parent investor hoping things will change? The only saving grace for them seems to be kids rushing in like a toy store during school holidays. Parents have no idea about games so they just assume a game store is the best place to buy and never bother to check online or other stores.

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Comments

  • thord on 21/06/2022 - 12:18
    +17

    EB Games parent company is gamestop, and since GME is still pulling a ridiculous stock price (due to meming or due to huge sales from the success of the switch and ps4) I doubt EB games is closing any time soon.

    Yeah, the savvy buyer on ozbargain picks up cheaper games from your major retailers or online, but I think you're vastly underestimating the number of walk ins who pay full price for COD or FIFA every single year

    • cameldownunder on 21/06/2022 - 14:34
      +4

      Fathers ( non computer savvy ) and sons buying full price after big shopping day in JB-HIFI, Zara, Telstra shop.
      "You can't have the puppy, but you can get a game"

    • itsHughesy on 21/06/2022 - 16:02

      I like buying and playing the new COD every year though..

    • Karl Pilkington on 12/08/2022 - 12:57
      +4

      EB still exist for 4 reasons:

      1) Boomer Ignorance.

      The sheer number of parents, especially around Christmas, who rock into store and buy their kid the game they've been asking for without even bothering to price check is astounding. I sold a plethora of Call Of Duty titles back in the day for the full $90 price point from adults who honestly didn't know any better, even giving them preowned copies for almost the same price. Which leads me to my second point…

      2) Preowned Titles

      Don't ask me the percentage EB get for selling preowned copies of games, but given how our sales metrics were always skewed towards them, I'd say it's fairly high. Preowned games also come with a two week, no questions asked return policy, so people (when sold to correctly) would oftern choose that title over a brand new one. Same game? Disc looks clean? I can save $5-20? Sign me up!

      3) "Loot"

      Around 2010, head office fired a bunch of random gaming merch to stores like t-shirts, figurines, etc. They sold so unbelievably well that 2011 was box after box of merchandise to shove somewhere in the store. Based on this EB opened an entirely new arm, Zing!, to offload merch by the bucket load. It's not uncommon to find people who don't realise Zing! is actually owned by EB.

      4) Pre-Order Bonuses

      I hate pre-orders, but it's impossible to ignore that giant collectors editions sell titles. EB have so many fingers in publishers pies that almost every major game release will have an epic edition that's exclusive to their company. Want the giant model spaceship and a bunch of other shit? Pay full price please, which people absolutely do.

      Ultimately, EB don't care about selling new copies of AAA titles or consoles, nor do they really care about appealing to the hardcore gamer. Their profits come from parents, families, blissful ignorance and other areas that still seem to keep them well afloat in the market and as long as they can keep stores open in areas that serve them in these aspects, they can afford to remove the ones that aren't.

  • Hybroid on 21/06/2022 - 12:21
    +16

    Not everyone looks for bargains or offers, plenty of people pay full $125 price for new games that I have seen frequently myself in queue. Also their "sales" events turn over a lot of product and revenue.

    They had an operating income of US$30.6 million in 2021 and are diversifying into merchandise tat and Pokemon cards and other product categories now including peripherals and hardware.

    GameStop's 380 Australian EB Games and Zing Pop Culture stores are, remarkably, the company's only profitable segment. For the 2019 calendar year, they reported a profit of $US9.4 million ($12.4 million).

    Coupled with the ridiculous money GameStop made off the GME stuff, they'll be fine. Downsizing and efficiencies will happen as per normal but generally fine.

  • Drakesy on 21/06/2022 - 12:22

    Gamestop is doomed to go the same way as Blockbuster, hard sales are no longer a thing, i'm surprised they made it this far tbh.

    The guy that started the meme buying literally thought there was potential, but when you pull it all apart it was purely rose tinted speculation. They couldn't pivot and it will continue to be a loss making model.

    The net income is still negative (it's a loss making company)

    EB games i'm afraid is not going to have a miraculous turnaround anytime soon tbh, no matter how much merchandise you can stick in a shop.

    Never thought i'd see the day when i'd agree with SlavOz yet here we are.

    • FireRunner on 21/06/2022 - 14:10
      +3

      hard sales are no longer a thing

      The industry is definitely trying to push that way. From subscription services to streaming services to digital only consoles. They’re pushing it hard to cut out the retailers, manufacturers, etc. as well as eliminate the second hand market.
      However, I don’t think the market is quite ready to switch over. Plenty of gamers prefer physical copies. Lots of games are not on a subscription service. Pricing is still better for physical copies in many cases.

      • Drakesy on 21/06/2022 - 14:30

        Yes there'll always be a few hold outs but you just have to look at sanity, blockbuster and all the other out of business game stores to see that the market has and will shift.

        • Quantumcat on 21/06/2022 - 22:39
          +3

          You can stream movies / TV shows very easily, and steam music very easily, but you can't pay monthly and get access to all the games you might want to play. Blockbuster and Sanity are a different kettle of fish to EB Games. Until you can subscribe and get access to every game you might want (not just older / selected ones with xbox live etc), EB isn't going to go anywhere. You might say buying them electronically is the same but it isn't - it's a different experience having to decide if you are going to like a game enough to pay $50 for it, and if you don't like it having to immediately pay another $50 for another game - with streaming music and movies if you don't like one you just stop watching / listening and try another one, and have the same guaranteed payment each month no matter how many you try.

          • Chandler on 22/06/2022 - 11:37
            +1

            @Quantumcat:

            but you can't pay monthly and get access to all the games you might want to play

            XBox Game Pass is moving that way but, and being quite successful too (or so I've heard). Obviously not all the games you might want to play (exclusions, exclusives, etc).

            • Quantumcat on 22/06/2022 - 12:29
              +1

              @Chandler: Oh really! I hope it is successful and other consoles follow suit

      • itsHughesy on 21/06/2022 - 16:03
        +6

        After seeing the prices of some digital items, I sold my digital PS5 and bought a disc version

    • bunkymag on 22/06/2022 - 07:50
      +1

      hard sales are no longer a thing

      Yep just like books and records oh wait

    • terrys on 22/06/2022 - 09:14

      hard sales are no longer a thing,

      It wasn't too happy to find that I had to jump through hoops to prevent Steam forcing me to download the entire Skyrim game - after I put the DVD in the system to install it.

      That was 9 years ago (of course I waited until it was on special). I doubt things have improved.

  • pharkurnell on 21/06/2022 - 12:27
    +8

    2 Local EB games are always packed…. dunno where you shop.

    • Falkner on 24/06/2022 - 12:19

      Depends, I've gone to multiple EB stores in the past in different suburbs to pick up specific games and some stores are absolutely more busier than others. Generally I've found that some of the stores in the inner city area tend to be less busy because there are more choices to purchases games in other competing stores, whereas the others in suburban shopping centres tend to be more packed since you're a bit limited for choice as not every medium or small sized shopping centre is going to have a Big W or JB Hi Fi, most likely an EB since they don't take up as much floor space as they do.

  • spackbace on 21/06/2022 - 12:28
    +1

    Could same the same for HN, yet it's still around…

    https://www.smh.com.au/business/companies/mario-cuts-through…

    Today, GameStop’s 380 Australian EB Games and Zing Pop Culture stores are, remarkably, the company’s only profitable segment. For the 2019 calendar year, they reported a profit of $US9.4 million ($12.4 million): modest, but far better than the $US343 million loss recorded in the US.

    • Drakesy on 21/06/2022 - 12:30

      You can't really download a fridge, tv, computer, coffee machine though.

      Admittedly yes you can buy a lot of these online but the B&M shop is there in case of warranty.

      Games don't really have as much of a risk factor.

      $12,4 million across that many stores is not really a great result given the level of liquidity that has been pumped into the system ($32,000 a store) or roughly having a permanent employee there for half the time.

      • spackbace on 21/06/2022 - 12:33
        +7

        Most digital content these days are actually more expensive than the physical item. Just need to see how many AAA launch titles have sales through Amazon/JB etc that people go nuts for, while the digital version remains $20-$30 more expensive.

        Add in EB's 7 day return window if the game is a dud and most would actually happily just price match and buy direct from them.

        But my point is that we don't account for the majority of their profits, same with HN. Members of this forum may question those who pay RRP, yet it's what these stores thrive from

      • jv on 21/06/2022 - 18:54
        -2

        You can't really download a fridge, tv, computer, coffee machine though.

        You can't download a physical game disk either.

        • Drakesy on 21/06/2022 - 19:33
          +2

          You can download the game though?

          Come on JV

          • jv on 21/06/2022 - 20:05
            +4

            @Drakesy: How do you sell a downloaded game once you get tired of it?

            • ozbjunkie on 22/06/2022 - 19:50

              @jv: That's when piracy actually becomes a crime rite?

  • JimB on 21/06/2022 - 12:31
    +2

    My son loves browsing in EB Games and as a reward or birthday/Christmas let him choose something from there.

    Sure, it may be cheaper elsewhere (and I try to price match where possible) but we just generally buy it there and then.

    • Muzeeb on 21/06/2022 - 12:41

      So your son doesn't get gifts on his birthday- just rewards?

      • JimB on 21/06/2022 - 12:42
        +3

        Sometimes he gets gifts, sometimes he gets EB Gift gards from others or cash.

        • Muzeeb on 21/06/2022 - 12:49
          +1

          That makes sense. My bad. I read

          and as a reward or birthday/Christmas

          and as a reward on birthday/Christmas

          • Quantumcat on 21/06/2022 - 22:43

            @Muzeeb: I read it the same way! Weird as the correct way makes more sense

      • ozbjunkie on 22/06/2022 - 19:52
        -1

        Shouldnt it have been "xor birthday/Christmas"?

        Let push for distinguishing inclusive and exclusive or in everyday english

        I personally would like another thing to be curiously pedantic about

  • trustnoone on 21/06/2022 - 12:32
    +2

    I think its here and there. Big w/Target are typically exceptions, their prices aren't much better to EB Games unless a sale/clearance is on, and then the game is massively low.
    Also EB Games are quite regional, I know many smaller towns that may have one target/BigW that has basically no stock, but they have a pretty vibrant EB Games.
    TBH I do think there are many people who do buy at full price too, they either don't shop around or check other places. It may be hard thinking this if you come on ozbargain too much that you know the prices. But many people want to buy a game, they go to the game store and buy it. Esp if EB Games does some sort of pre-order bonus or limited edition run which some others don't do.
    Prices IMO are typically their biggest problem, but I think EB Games capatalise on their second hand market. Buying cheap and selling at not all that much below normal price. I think this is their biggest problem though, with Microsoft/Playstation trying to go the streaming/digital route, I can definitely see that hitting their bottom dollar. Along with Amazon price matching online with prime making delivery an ease.

    I do think being the only real Gaming store though does mean they get a bit more audience then what would usually happen. So people like going there, being part of the environment, checking it out, buying geek stuff etc going to EB Expo etc.

    I guess I won't say its all roses, but I wouldn't put a nail in the coffin yet.

  • randomusername2017 on 21/06/2022 - 12:35
    +3

    Can we get a similar in-depth analysis of Myer stores viability next please.

  • Qazxswec on 21/06/2022 - 12:36
    +3

    EB Games match any physical stores price though, most people know that and just get the cheapest price available, the high cover prices are for suckers and grandmothers buying games for their grandkids, EB do just fine, maybe even better than fine

    • tajid on 21/06/2022 - 15:10
      +1

      Not true, never had any luck price matching with them. Every store/staff has their own policy.
      My local one only price matches stores in the same shopping mall and even then 4/5 time I asked, they said they'd be selling at a loss if they price matched.

      • Qazxswec on 21/06/2022 - 16:10
        +1

        everyone i have ever shopped at does

  • djones145 on 21/06/2022 - 12:42
    +4

    their sales models is not anyone on ozbargain
    its on parents who bring their kids and buy pre owned games

  • [Deactivated] on 21/06/2022 - 12:54
    +4

    Mostly kids shop there, I assume. When I was a kid I didn't even know how to pirate a game or find one online for a cheaper price, the EB trips were always exciting.

    • pharkurnell on 21/06/2022 - 12:55
      +2

      same with parents and grandparents.

    • tallkid123 on 21/06/2022 - 13:57
      +1

      I remember the first time I walked in to an EB Games as a kid - it was the Carindale QLD store in 1999.

      Before then, it was just me wandering around the entertainment sections of Kmart, Target and Big W.

      But when I discovered EB, I literally would not leave without getting a game.

    • FireRunner on 21/06/2022 - 14:15
      +1

      Toy stores were a magical place for kids but few have survived into the digital age

  • PuntyBrah on 21/06/2022 - 12:59

    I thought the same but actually have recently found their pre-order and occasional bonus trade-in deals to be great if you know how to try advantage of them (by taking advantage, I mean screwed EB games through these deals), for context, I managed to spent just $55 to pre-order and fully paid off Modern Warfare 2 and The Last of Us Part I (once it gets priced matched at release).

  • freefall101 on 21/06/2022 - 13:05
    +2

    EB is a niche, just a successful one. I always tend to wander into an EB when I'm near one, sometimes I buy something. The ultra-nerdy staff, the wide range of stuff, the cheap used games, it's still managed to hold onto a vague retail experience for some people. And that's all it takes, their sales are only 15% of the Australian gaming market (and they sell a lot of merch and other crap too).

    The main company isn't going anywhere either. They have almost no long term debt, over a billion in cash and are growing their sales of non-gaming items (collectables) despite the lack of consoles to move.

  • mboy on 21/06/2022 - 13:19
    +6

    I think EB were in the black a while back (feels like close to 10 years ago or so), but they made some sweeping changes that really added to their value proposition:

    • EB are the only game retailer in Australia (that I'm aware of) that has a change of mind policy that persists after you play the game. So you can buy a game, unwrap it, play it for 5 days, realise you don't like it, and return it to the store for a full refund. I've done it on 5-10 occasions over the last 5 years and it's a no-questions-asked process.

    • Yes, their prices are full RRP, but they also price match any Australian brick-and-mortar retailer (some EB stores are a bit more strict and will only price match stores that reside in the local area). That's often something I've had JB or HN decline to do. EB allow me to do it every time.

    • Lesser so, their 'EB World' rewards program is nothing to sneeze at, and adds some worthwhile perks - particularly around extra value for trade-ins.

    For me, often shopping at EB is a no brainer. I'm price-matching the game to the lowest price, I have the option available to me to return it for a full refund if I don't enjoy it, and (again, lesser so) I'm earning rewards points in the process. I don't see the downside.

    • Qazxswec on 21/06/2022 - 16:12
      +3

      "in the black" is a good thing, it means you are making money, i think you mean "in the red"

      • SlavOz on 21/06/2022 - 18:26
        -2

        Their price match is the reason you shouldn't buy from them. They'll only price match if you're smart enough to ask. They already know there is a lower price right next door but they're hoping you don't realise and just pay the full price since you already have your wallet out.

        Why not just support the business that offers you the lowest price from the start? Besides, EB don't price match in good faith anyway. It has to be in stock at the same shopping centre - so you could find it cheaper 5km away and they'll refuse, hoping you're not bothered to drive that extra distance. Their entire business model is built on extorting you for the highest possible price. Why reward them for that?

        • Qazxswec on 21/06/2022 - 18:34
          +1

          i don't support them, i am just pointing out their policies and remarking they are far from going out of business

        • spackbace on 21/06/2022 - 19:07
          +3

          It has to be in stock at the same shopping centre

          Except for most stores that's not the case, you just cherry-picked one single comment in here

          Why price match? 7 day returns, no questions asked.

          Why price match? You could be getting stock from an EB closer to you than the competitor store

          Why price match? The occasional carrots benefits

          Why price match? Because sometimes that's an Amazon price match, and why does Bezos deserve the money any more than Gamestop does?

          • SlavOz on 21/06/2022 - 19:27
            +1

            @spackbace:

            Except for most stores that's not the case

            I don't this true. Pretty sure it's their written policy that it needs to be in stock in the same shopping centre, or at least that's how their staff is told to interpret it.

            7 day returns, no questions asked.

            But they do ask questions. And if you keep returning a game after 7 days, then do it again and again on the same purchase, they will ask even more questions. I speak from personal experience (albeit a long time ago).

            why does Bezos deserve the money any more than Gamestop does?

            Because if your money is going to a major corporation, then you might as well give it to the one that's delivering value and not trying to extort you for the highest price.

            • spackbace on 21/06/2022 - 19:32
              +1

              @SlavOz:

              I don't this true. Pretty sure it's their written policy that it needs to be in stock in the same shopping centre, or at least that's how their staff is told to interpret it.

              Based on what? Or is it just your gut feel? Because my experience at various stores has always been really easy

              But they do ask questions.

              So? They offer it, which is perfect for the number of dud titles that come out these days. No one else has the balls to.

              Because if your money is going to a major corporation, then you might as well give it to the one that's delivering value and not trying to extort you for the highest price.

              As if any retailer, which has a CEO (not a 'mum n dad' setup), is any more deserving than another one.

            • buckster on 27/06/2022 - 10:14

              @SlavOz: The problem with the argument for Amazon is that once they defeat their competition, they rise their prices, so keeping as many individual players in the game is worth it for us in the long term

        • Quantumcat on 21/06/2022 - 22:46
          +1

          Why not just support the business that offers you the lowest price from the start?

          Because they don't offer rewards points or no questions asked returns in 7 days

        • mboy on 22/06/2022 - 01:16
          +2

          Their price match is the reason you shouldn't buy from them. They'll only price match if you're smart enough to ask. They already know there is a lower price right next door but they're hoping you don't realise and just pay the full price since you already have your wallet out.

          One could argue the reason they’re able to offer stuff like their 7-day post-play returns policy (which again, I’m not aware of any other Australian retailer that offers it - and despite your criticisms, I’ve used several times without any issues at all) is because of the non-price-savvy shoppers who will pay full price.

          I can’t imagine EB could possibly justify continuing to offer a returns policy like that if suddenly every single one of their customers price matched everything they bought.

          Also, why is your criticism targeted at EB for daring to charge rrp on games, rather than targeted towards shoppers who make impulse purchases without checking for the best price?

          Using your rhetoric, if I were to hypothetically waltz into Myer and impulse-buy something for $500 that I later found out was available for $300 in other nearby stores, you would consider me a ‘victim’ as opposed to someone who did a stupid thing by not shopping around.

          • SlavOz on 22/06/2022 - 09:59
            -1

            @mboy: Because corporations have a social and ethical responsibility due to the balance of power they hold. What if someone was killed by a faulty car? You could argue they should have been more diligent but ultimately the manufacturer is liable.

            That being said, I certainly do not have much respect for people who blindly pay the stupid tax at major retail stores these days. It's almost like shopping/selling online is seen as tabboo or inconvenient when it's really not.

            There is definitely an element of crowd madness when it comes to such behaviour. "Everyone buys at EB games so I'll buy there too!" People just need a social outlet, especially post-covid. But I definitely do blame them because this kind of behaviour only encourages extortionate business practices. We all get screwed over in the end if people consistently refuse to hold corporations accountable.

            • mboy on 22/06/2022 - 12:14
              +1

              @SlavOz:

              Because corporations have a social and ethical responsibility due to the balance of power they hold. What if someone was killed by a faulty car? You could argue they should have been more diligent but ultimately the manufacturer is liable.

              That's not the same thing. Charging rrp (which is what EB are doing, and you are primarily objecting to) is neither "socially or ethically irresponsible". People have a choice and those who choose to not shop around are doomed to pay what you've rightly called the "stupid tax". That's true in every single industry.

              There is definitely an element of crowd madness when it comes to such behaviour. "Everyone buys at EB games so I'll buy there too!"

              Same answer as above. Also I think you're wildly overstating the proportion of EB customers who are unaware that EB are more expensive than their competitors.

              But I definitely do blame them because this kind of behaviour only encourages extortionate business practices.

              It may not always be a successful business model, but in what world is charging rrp extortionate? You're using crazy exaggerations to try justify your position.

              • SlavOz on 22/06/2022 - 18:29
                -1

                @mboy:

                in what world is charging rrp extortionate?

                In a world where literally nobody else is charging that price, and (as you admitted) most people are too stupid to realise there are cheaper options, and the retailer sets their business model up around exploiting that stupidity.

                As a thought exercise, remember when companies exposed people to asbestos, even though they know there were risks involved? Yeah the "experts" said there was nothing to worry about so you could've argued they were acting ethically but in reality the companies knew that asbestos was dangerous and relied on market ignorance to get away with it.

                Doing things by the book doesn't necessarily mean it's ethical.

                • mboy on 23/06/2022 - 09:46

                  @SlavOz: Look, we're going to have to agree to disagree, but just in response to this:

                  and (as you admitted) most people are too stupid to realise

                  I never said 'most' people, not once. I said the opposite above:

                  "I think you're wildly overstating the proportion of EB customers who are unaware that EB are more expensive than their competitors."

      • mboy on 22/06/2022 - 00:48

        "in the black" is a good thing, it means you are making money, i think you mean "in the red"

        Yeah you’re right. Weird, I always though “in the black” was bad.

  • tallkid123 on 21/06/2022 - 13:59
    +1

    They already closed down quite a few stores about 2 or so years ago nationwide.

    Moving forward, we're likely to see more combined EB Games/Zing stores as merchandise starts to take over video games themselves.

    I like EB Games since I'm a collector and just wait for their EOFY/Xmas sales and buy all the obscure stuff no one else is really after.

    • jv on 21/06/2022 - 18:55
      +1

      They already closed down quite a few stores about 2 or so years ago nationwide.

      Lots of small stores in small shopping centres closed due to COVID.

      SlavOz knows all about that…

      • tallkid123 on 22/06/2022 - 12:28

        Those EB Games store closures were just before Covid. So pandemic or not, they were doomed.

        • jv on 22/06/2022 - 12:43

          closures were just before Covid.

          Inside information you reckon?

          • tallkid123 on 22/06/2022 - 14:12

            @jv: Well, one of the closed stores was in my childhood suburb and the only people who live out that way are retirees. So not surprising they shut down.

            • jv on 22/06/2022 - 14:13

              @tallkid123:

              the only people who live out that way are retirees

              I would have thought they have a lot more free time to play games…

    • Trekky on 22/06/2022 - 09:40

      My local centre had an EB Games Store as well as a Zing Store. The EB Games store closed after a few years. Then late last year they opened a new Eb Games Store, so still have both.

  • RichardD on 21/06/2022 - 14:14
    +1

    I buy from there too….. a bit more expensive but who cares.
    I do go in to browse and buy giftcards for birthdays buy discount tee-shirts etc.
    Without supporting local retailers in the long run we will just pay more.

  • loch95 on 21/06/2022 - 14:50
    +2

    I don't buy full price from there (price match is handy), but their Level 4 is really handy for trade ins
    Easy way to save money and not have games i don't play anymore collect dust
    Also, the people at my local are super-friendly and it's a joy to shop there

  • AustriaBargain on 21/06/2022 - 16:03

    With internet being everywhere, piped into our homes, beamed from space, beamed from cell phone towers at higher and higher speeds, I don't see why Nintendo/Xbox/Sony even need physical retailers. Nintendo could eat the costs of building in 5G modems into their next console and it would pay for itself by not having to give EB Games a 30% cut of each game sold. Though EB Games helped Nintendo make billions over the years so it makes no sense to throw that relationship away so quickly. But long term I think EB Games/Gamestop are uninvestable.

    • SlavOz on 21/06/2022 - 18:15
      +1

      EB did not make money for Nintendo. Nintendo released products which everyone wanted, and EB happened to be a convenient place to get them. They could've sent me 50,000 Switch units and I would move them just as fast. Anyone who wanted a switch went out of their way to get one, just like the PS5. You couldn't even get one in stores and sales still peaked.

      • AustriaBargain on 21/06/2022 - 19:43

        Every retailer who sold Nintendo products helped make Nintendo money, and Nintendo helped make those retailers money. It was a mutually beneficial relationship that goes back 40 years for consoles, 45 years for video games, and over 100 years for Nintendo products in general. I don't think Nintendo, as a traditional Japanese company, would be so quick to end that on a whim. But it is inevitable that games over the internet will one day be how it's done which just leaves retailers with selling the console and Nintendo shop cards. So EB Games will have to transition into a gaming lifestyle retailer selling merch and "loot" or hosting tournaments and stuff to cover the difference once they stop selling games.

        • SlavOz on 21/06/2022 - 22:17
          -1

          Could also claim that everyone dumping their consoles on Gumtree or eBay are make Nintendo money too, as well as shopping centre developers who provide the space that game retailers operate in.

          Of course there's a long list of operations that make Nintendo's distribution easier, and I agree there's no reason to rock the boat since the model is working well for them. But in reality, Nintendo doesn't need the retailers, or the sedond hand sellers, or Westfields. Their products sell themselves and there's a long list of vendors who would be willing to stock them.

  • MeesusEff on 21/06/2022 - 16:09
    +1

    Also remember, a lot of people are happy to pay the lazy/convenience tax (obviously not ozbargainers). They like to just walk in, see what they want and get it instead of waiting for the cheapest deal etc. Or parents looking to get quick presents for their kids. Everytime I've been in line I've never seen a single person price match. I don't bother myself as I have price protection, so I get more carrots and/or flybuys points

    • AustriaBargain on 21/06/2022 - 19:44
      +3

      And it's still nice being able to return games in 7 days no questions asked. When games are $100 a pop then that is a really good option to have.

  • jv on 21/06/2022 - 18:52

    Is EB Games Bound to Close down?

    No, because I can still buy Skylanders there.

  • Trying2SaveABuck on 21/06/2022 - 20:02

    they will continue capital raising from the army of idiots down at r/wallstreetbets who believe this will one day go to the moon….even though the company model is dead

  • gee-man on 22/06/2022 - 07:59
    +1

    Everyone in this thread focuses on new games being the measure of success and viability for EB.

    You’re wrong.

    Selling New games makes next to no profit. Preowned is where all the money is. Think about what you get in trade credit for a new release game (~$30) and what they resell it for ($60+).

    Look at the loyalty program, and what it incentivises.

    Digital downloads aren’t as much of a threat under those circumstances.

    • SlavOz on 22/06/2022 - 08:52
      -1

      They must be cheering at the new rules on eBay which effectively make it harder to sell your pre-owned items, including games. I used to sell on eBay all the time but after recently trying to list a game they started asking for my passport or drivers license to verify my identity - yeah, na, not giving my data up to some American megacorp that's just going to hand it over to the ATO anyway. So I can no longer sell my unwanted games on there and I'd imagine anyone who doesn't like the new structure is in the same boat.

      Gumtree is OK but very hit and miss. So my only option now is to resell used games at a pawn shop or trade them in. But honestly, I'd rather keep them as dust collectors than let EB rort me out of 50-60% of their value. Their trade in value is downright a scam. They'll give you like $20 for a game that easily resells for $65+.

      • Quantumcat on 22/06/2022 - 09:31
        +2

        Their trade in value is downright a scam. They'll give you like $20 for a game that easily resells for $65+.

        It's not a scam. It is selling convenience. You could sell the game for $65 privately, but then you have to deal with time wasters, people who don't show up when they say they will, people that do turn up and then try to haggle etc. If you wish, you can choose to forgo $45 for the convenience of getting the cash immediately and not dealing with people's nonsense. Whether or not someone thinks it is worth it is up to them, and they're free to choose how they dispose of their unwanted game. However note that if you buy digitally, you can NEVER get any money for it later. Therefore, EB Games and hard copies are not going anywhere.

        • gee-man on 22/06/2022 - 09:41
          +2

          And to add to this, often people will spend that Trade credit on Preowned games, because it gives them greater buying power, giving EB even more value from your trades.

          It's a viable business as long as Digital copies remain expensive, once they drop to a throwaway price (which they likely never will), EB will start having trouble.

        • SlavOz on 22/06/2022 - 09:45
          -2

          Hagglers and time wasters over video games? LOL dude it's not a car. I've never had that experience reselling games. Chuck it on eBay and it usually sells within a few days with the money sent straight to you via PayPal. Gumtree yeah someone might not show up but it's not like you have to take a day off work to show them the game and complete the transaction.

          • Quantumcat on 22/06/2022 - 09:48
            +2

            @SlavOz:

            Chuck it on eBay

            Didn't you just say you won't use ebay due to the ID requirements? 🤔

            Ebay is also full of scammers - creating refund requests and shipping you back an empty box, or claiming they never received it and ebay ignoring the "Delivered" update on the tracking number, etc. Not to mention the obscene fees.

            • SlavOz on 22/06/2022 - 10:03
              -2

              @Quantumcat: I no longer use eBay but I would imagine it's still a worthwhile option for people who don't care about giving away their private address and information to an American geopolitical platform. Scammers usually target expensive items, not games, and they are not that common.

              • Quantumcat on 22/06/2022 - 10:28

                @SlavOz: I used to buy and sell video games and consoles as a side hustle for a few years and while it doesn't happen on most sales, it does happen

          • tajid on 22/06/2022 - 10:31
            +1

            @SlavOz: Oh you'd be surprised how low people could be on Gumtree/Marketplace.

            I was selling NBA2K22 and over a 1.5 weeks period, 6 people said they were coming 'tomorrow', then never heard from them again.

            Just one of many examples.

  • Drj55 on 22/06/2022 - 08:04
    +2

    If you're buying a have for your kids, you can't wrap a digital game. There's a lot of magic in pulling off the wrapping for the little ones. It is a massive pain that ps5 makes you insert the disc every single time though!

    I think physical discs will be around a while yet, but Amazon / big w are more of a threat I would have thought.

    It's hard to imagine a universal streaming service with day 1 releases. I know Microsoft does it but sony has made it clear they won't be. The game industry is bigger than than the movies and I couldn't e how the economics of day 1 streaming release could possibly add up. Surely Microsoft is just chucking money away with gamepass??

  • 2esc on 22/06/2022 - 09:14
    +1

    I rarely buy from eb games because they are usually too pricey but the kids love to look. They always have people in the store when we are there buying or looking.

    I think the stores have strong enough trade to have a store front for at least a few more years. A lot of people do still like to look at the physical items in person.

  • DazMon on 22/06/2022 - 23:31

    OP is living in la la land.
    The EBs we go to are always busy.
    My boys love going there.
    They're not going broke anytime soon, they're doing something right.

  • wonderboy on 27/06/2022 - 12:16

    Big W/Target will likely stop selling games before EB closes down. Games are a loss leader to these stores. Big W closed down a whole bunch of stores fairly recently. Target barely sells games to begin with outside of the big AAA titles and aren't they converting all Targets to Kmarts which don't sell games.

  • povie on 27/06/2022 - 22:31

    I only go to eb. Their carrot points system works well and offers decent member benifits with trade ins and they always price match games or console prices from other stores.

  • Cheap Gamer on 05/07/2022 - 09:45

    EB may as well be closed if you're a PC gamer. I hate walking past them now because it's sad. I used to love going there.

    • Aliensf on 02/09/2022 - 19:25

      Lol, when I was 15 I would walk into EB Games, open up a game case and find the cd key in there. basically a free game lmao.

    • Windows7forever on 09/09/2022 - 18:54

      I have fond memories of going to EB in the late 90s/early 2000s when they had a massive computer gaming collection. Such a shame it's all gone digital !

  • AydenFX on 06/07/2022 - 19:17

    Last time I check (3 years ago) they were in the process of merging zing and EB completely into one store as the zing shit pulls $$$$

  • kazuyamishima on 07/07/2022 - 11:24

    I stopped reading when the OP said that BigW and Target have better stock than EB.

    Not to forget the wide variety of games EB has.

    And NO, retailers don't lose money selling videogames, they take about 25% of the RPP.

    They DO lose money when they do a lot of clearance sales (Like Target).

  • Windows7forever on 09/09/2022 - 18:56

    EB is getting worse. Their prices on second hand items are increasing, they don't sell computer games anymore, and they are filling their stores with this crappy zing clutter that doesn't interest me in the slightest!

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