1. An increasing amount of video game spend is now add-ons. EA makes as much off FIFA Ultimate Team as they do off FIFA, maybe more. GameStop gets a bite off the first retail sale, and off used sales, but they don't get a bite off all the various aftermarket transactions. All three consoles now have pay-to-play online.
2. An increasing amount of video game spend is now free to play. Fortnite is free to play. Call of Duty Warzone is free to play. Apex Legends is free to play. Valorant is free to play.
3. An increasing amount of video game spend is on subscription plans, obviating the need to buy software. Microsoft has re-aligned their entire company around Xbox Game Pass. EA has EA Play. Ubisoft has their equivalent.
So even if 50% of nominal unit sales for digital + physical software remain physical, that's now far less than 50% of dollar spend. Every console is hooked up online, and with the new generation some models don't even have disc drives.
GS can probably retool itself to do a better job of competing with Amazon and eBay -- and they should! -- but it can't do a better job of competing with all of the secular pressures killing games retail.
1. An increasing amount of video game spend is now add-ons. EA makes as much off FIFA Ultimate Team as they do off FIFA, maybe more. GameStop gets a bite off the first retail sale, and off used sales, but they don't get a bite off all the various aftermarket transactions. All three consoles now have pay-to-play online. 2. An increasing amount of video game spend is now free to play. Fortnite is free to play. Call of Duty Warzone is free to play. Apex Legends is free to play. Valorant is free to play. 3. An increasing amount of video game spend is on subscription plans, obviating the need to buy software. Microsoft has re-aligned their entire company around Xbox Game Pass. EA has EA Play. Ubisoft has their equivalent.
So even if 50% of nominal unit sales for digital + physical software remain physical, that's now far less than 50% of dollar spend. Every console is hooked up online, and with the new generation some models don't even have disc drives.
GS can probably retool itself to do a better job of competing with Amazon and eBay -- and they should! -- but it can't do a better job of competing with all of the secular pressures killing games retail.