GameStop refuses to sell Consoles bundled with Digital Games
During a recent earnings report conference call, GameStop executives outlined their decision to move away from "digital" bundles and highlighted their recent effort to provide "physical" bundles instead. This new strategy went into effect just last month, with the release of Madden NFL 16. While other stores sold Xbox One and Playstation 4 bundles featuring digital copies of the football game, GameStop "worked with Sony, Microsoft, and EA" to reach an arrangement for the retailer to provide a physical copy with any new console purchased. This isn't just a little experiment either. GameStop COO Tony Bartel explained that if Sony and Microsoft continue to release digital bundles, GameStop will turn to "third party" physical-bundles. This could mean that they'll work out a deal with a major publisher like EA or Ubisoft to include a free physical copy of a recent release.
The obvious stance here is, Gamestop's only continued profitability and business model relies on used game sales. Controversy has always stemmed from the pay out of a used game that will eventually be resold to another consumer for a $50 price tag, but in the end it is what drives Gamestop's overall cash flow.
It is rather interesting to see the trend of Digital games continue to rise against the physical copies of games. Early NX rumors have begun circulating that the new Nintendo console may be intending to go full digital for the future, and i'm sure most 1st and 3rd parties would love to cash in on the market of digital sales.
As a purveyor of digital games, I find the stance understandable but a little silly. How do you feel about this move? And what is your stance on the timeless Physical vs Digital argument?