Is GameStop a Best Buy for Best Buy?

Illustration for article titled Is GameStop a Best Buy for Best Buy?

Dow Jones cornered Best Buy's CFO at an investor conference and asked if he'd comment on speculation the retailer might buy GameStop. Ryan Robinson declined to do so, but said some things that still keep the subject alive.

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"What I think is something that we've missed in the industry and is something other participants have been doing is the proportion of business that is used," Robinson told DJ Newswires. "We've not developed the capability to the extent that other participants have. It's a very margin-rich portion, so I think there's opportunity in that business."

This is all in response to the site Bloggingstocks.com, which speculated on Tuesday that GameStop could be an acquisition target. Of course, it might also cost north of $4 billion to do that, which is dough Best Buy doesn't have. Leveraging the deal or doing a stock swap then commits Best Buy to the bricks-and-mortar game retail business for the long term, and Robinson noted the industry's shift toward digital distribution. He also pointed out the company's test of in-store kiosks that buy back used games.

Best Buy US CFO: Used Video Games 'Strategically Interesting' [Dow Jones Newswires on The Wall Street Journal.com]

DISCUSSION

edercampuzano
Eder Campuzano

GameStop is just very good marketing. It baffles me why anyone would want to take their business there unless there were no alternative.

Hell, even here in Eugene, Ore. (props to Mr. Good), there's plenty of local used game sellers that 1. Give you more for your games in cash/trade and 2. Have fairer prices on used games.

My favorite place to buy games here, the CD Game Exchange, has a great business model I've seen in stores across the country (one uncanny example is The Exchange in the Wicker Park area in Chicago, Ill.). They use [Amazon.com] to gauge how much they'll sell a used game for. They'll pay out about 50% of that in credit, 40% in cash. All systems must have all necessary cables and at least one controller to be sold.

If they have more than one copy of any given title, the first copy they put out is sold at about the same price you can find on Amazon. The second copy will be a bit cheaper, so will the third, and so on. For example, there's usually four or five copies of Gears of War in stock. First copy will be $20, second goes down to $18 and the fifth copy will be priced at $10.

Now that's how you deal in used games.