[quote name='Samus']I read all these horror stories online, and you'd think some young business man would see the opprotunity and make an electronic store with awesome customer service and appeal to more of the hardcore gamer.
Why is it so hard? Surely there is no doubt that many people would shop at a good store rather than GameStop.
I would have:
-A selection of retro games.
-Discounts on disc-only games (and trade in bonuses for complete games)
-Really good customer service - don't just hire any shmoe.
-No gutted games.
etc.
I don't see how GameStop manages to stay the king. Sure, they have a ton of money, but couldn't good business gradually build up a chain?[/QUOTE]
Not that easy to do, especially in my area. We just had a games shop move out of a mall a week ago, they had no business. Judging by the traffic that store got they were probably getting 1-2 transactions a day, if that. I think here its a general dis-interest in older games, and most of these independent shops lack a decent supply of newer games which is what people want. People just aren't buying older video games here, it may be popular in other areas, but not here. I understand that there is a market for retro games, and that people will pay big $ for retro games if they are famous, but there is no one in my area that will pay the money for them. Its just a really niche market and I can tell you by the amount of stuff that I see here for sale and after enough years of shopping in game stores and seeing what people buy, what they talk about and what they are interested in that retro games here do not sell. Its going to be different for every area though.
There are also a lot of stores that sell video games, and 90% of the public will go to a big box retailer to get that new game instead of going to the independent. The huge selection of online game shops does not help either, perhaps an independent store would survive here if there was no ebay, amazon or any other online game shop. I know that when I need a game, I simply go online to buy it, and I expect lots of others do the same.
It just seems impossible to do it right and make money while doing it, people want to trade in older games to get new ones, not to get more older games, but then there are no buyers for the older games, since no one cares here (except me). Sure you could set up a game store that had trade in values that were 80% of what you sell a game for, sell brand new games for less than retail and constantly take older games in trade for new ones but this business model would not last very long as you would lose a lot of money.
You also have the fact that newer games are generally harder to acquire if you want to have it in on release date and sell it at a price that is competitive to the rest of retail while still making money on it. The margin of profit you would make is just so slim that its not even worth starting up as a business. There is a reason why gamestop has to thrive off used games, and retail stores that sell games, often sell other products and just have a video game section to lure you in in the hopes that you will buy other stuff while picking up that new game. So they are still turning a profit even though they aren't a dedicated video game store.