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Austrian shop Gameware stops selling Xbox consoles in response to Game Pass announcement

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Oct 27, 2017
5,746
#1
Gameware KG, operator of the gameware.at portal, told GamesMarkt that all Microsoft consoles have been delisted.

Gameware KG does not understand why one should still sell Microsoft consoles, "which bring zero profit and only expenditure, if Microsoft alone then wants to profit off of the sales of software". The company from Innsbruck, Austria, has been in business since 1989 and has since had almost 375,000 customers. And Gameware tells Microsoft: "If you want to do business alone, you should do the work alone."
http://www.mediabiz.de/games/news/xbox-game-pass-gameware-at-listet-xbox-konsolen-aus/426183 (in German)

If you missed the original news: Xbox 1st party games to launch same day on Game Pass (SoT, CD3, SoD2, subsequent Halo/Forza, etc)
 
Oct 25, 2017
2,843
#7
I seriously doubt this happens in the US and even if it does MS could just take less of a cut from their console hardware to entice retailers. They can take the hit if their subs grow fast enough.
 
Oct 27, 2017
7,244
#9
Wow.... Sure a netflix/digital like game sub probably is the future and might tone down retail but that still is a bit off, why cut off now? Retail games still do quite good.
Digital is outpacing physical. Most of the AAA publishers are quietly preparing to abandon physical within the next 5-20 years. I don't like it, but that's the way the wind has been blowing for some time.
 
Oct 27, 2017
6,897
UK
#12
This was clearly always the likely outcome, but dedicated gaming outlets are on their last legs anyway so I suppose it's a small price to pay.

This will backfire on Gameware though, as this is only going to generate even more awareness and publicity for Game Pass!
 
Nov 3, 2017
8
#14
Did Universal etc. throw a hissy fit when Netflix started their expansion? (I see this as a netflix like solution for games). Plus the discs, new and used (of which in the latter case only retailer profits unless the devs offload some costs into Microtransactions/dlc) aren't really going anywhere so... I don't understand. Why?
 
Oct 27, 2017
4,407
Germany
#15
That is so stupid ... Especially that reasoning lol.

Retail games are still here. And they will stay.

They fear the competition and the customer choice. That is all.
 

Grim Patron

Banned
Member
Oct 26, 2017
771
#17
Did Universal etc. throw a hissy fit when Netflix started their expansion? (I see this as a netflix like solution for games). Plus the discs, new and used (of which in the latter case only retailer profits unless the devs offload some costs into Microtransactions/dlc) aren't really going anywhere so... I don't understand. Why?
I dont think the newest movies/tv shows from universal etc show up on netflix / amazon prime etc day one when theyre in theaters.
 
Oct 27, 2017
252
#19
I don't think this retailer completely understood how Game Pass works and what is concept behind it. Do they also delist all EA games when they arrive to EA Access Vault?
 
Oct 26, 2017
352
Australia
#20
Xbox Game Pass doesn't replace retail games. Hell, I dare say for most people 90% of the games on Xbox Game Pass they wouldn't have purchased anyway.

There's also the fact that most games sold on Xbox are third party games anyway.
 
Oct 25, 2017
1,796
#21
Popcorn.gif.

Microsoft made this move with consideration for US only I think as per the initial always only online. Will be interesting to see how the world reacts.
 
Oct 25, 2017
983
#22
Gotta keep in mind we are talking about an Austrian retailer, outside of the UK - Microsoft doesn't have such a big audience in mainland Europe.
 
Nov 2, 2017
2,630
#23
What a dumb response by the retailer. So lets say Sony and Nintendo go the same route, the retailer is going to shut down on principle as they'd have nothing to selll.

Anyhow its time for brick and mortar stores to die. GAME UK hopefully first in the firing line.
 
Nov 29, 2017
1,085
#24
Game Pass is an extremely ballsy move exactly due to this.

it may sound overly dramatic but the the retailer is right in my opinion, Microsoft is basically saying "you know, retail, you had a good run but it's time to move on, please quietly cooperate while we embrace the future and your business slowly but decidedly goes to hell".
 
Oct 29, 2017
2,398
#25
I seriously doubt this happens in the US and even if it does MS could just take less of a cut from their console hardware to entice retailers. They can take the hit if their subs grow fast enough.
I reckon this is the reason the store does it in the first place. They're probably not selling many XB1 games anyway, and want a bigger cut on the consoles sold.
 

Highstone

Permanently banned for usage of an alt-account.
Member
Jan 22, 2018
48
#28
You don't delist a console that is still in rotation unless you need an excuse to drop it from your selection. Maybe the console isn't selling well for them and this was the perfect scapegoat to drop/delist from their website/shop.
 
Nov 23, 2017
326
#30
Seems kind of like a knee-jerk reaction by the retailer. Most Xbox owners probably won't subscribe to the service regardless of the value, people with the service will definitely still buy physical games, and third party titles will likely not be launching on the service.
 
Jan 19, 2018
313
#31
Wow, that's a horrible business move. At least wait and see how it'll impact your sales before doing this. Is this supposed to be PR for anti-Microsoft fans because I don't really understand how doing this will benefit them. They're overreacting without having all the facts at hand. It's just a self-fulfilling prophecy on their part and they're making it impossible for themselves to ever sell to the Xbox audience again due to bad reputation. Congratulations, you played yourself.
 
Oct 28, 2017
979
#32
Trying to stop the inevitable huh? still to early to be melodramatic like that considering we probably have 5-10 years until an all digital future.
 

jacob.armitage

And that went well, so I'm compelled
Moderator
Oct 25, 2017
3,317
#33
That is so stupid ... Especially that reasoning lol.

Retail games are still here. And they will stay.

They fear the competition and the customer choice. That is all.
While i think the actions of this retailer are silly, the issue is that the video game retail market is shrinking, and shrinking so fast that game specific stores likely won't be able to exist in the long term without doing something drastic. I think its why you're seeing places like Gamestop pushing high margin collectibles so much these days. Even places like Best Buy its starting to feels like their video game sections are a far cry from what they were five years ago unless you are in a major city.

Retail games are here to stay, for the time being at least, however a lot of the companies and stores that sell them are not.
 
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Oct 27, 2017
416
#35
I don't know their market share and the amount of revenue they used to generate from Xbox, but I guess this is more of a problem with the future business model of game stores than anything else. If I was a shareholder of one of these companies I would've sold them off some time ago as anyone could have seen this coming as soon as the app stores took off.

I think they should really take this moment as a wakeup call to go looking for other ways to generate revenue, because selling individual games, console bundles and hardware at low margins isn't going to cut it for game specific retail stores in 2/3 years time when the next generation hits (or more optimistically 5-10 years). Or they could react like this and further limit their revenues in the short term, while they will see revenue decline.
 

SG-17

Community Resettler
Member
Oct 25, 2017
6,465
#36
Good. I hope more retailers fight back against this shit.

This is all leading to the end of owning games and its bullshit. Microsoft can fuck off with GamesPass. EA can fuck off with EA Access.
 
Oct 26, 2017
4,692
#37
I didn't expect to see responses like this, but did expect to see some kind of more subtle pushback. Ordering fewer hardware units, dedicating more shelf space to other platforms, pushing more into pre-owned for Xbox games etc.

I don't think it'll impact Microsoft's plans, bigger and non-games retailers won't be too bothered.

Were I in Microsoft's position, I'd dedicate effort towards developing their direct hardware sales for the long term.
 
Oct 25, 2017
683
UK NW
#38
Very knee jerk reaction from the retailer and very stupid considering they have 3rd party games to sell on the platform that they have just blacklisted.
Like I dunno it just doesn't seem like game sales are just going to vanish any time soon.
Wonder if anyone else if going to do this.
 
Oct 27, 2017
7,057
#40
Lets be honest - they would never do this if the Xbox was selling like hotcakes. They probably just needed an excuse to dump it - which they just got.
When you make not enough money with a product you will dump it for the smallest issues.
 
Nov 3, 2017
2,233
#41
Considering that Xbox hardware and software sales are already extremely low here in Germany/Austria this won't really hurt Gameware all that much.
 
Oct 26, 2017
3,525
#46
lol
They are losing not Microsoft, also physical games are not going to die anytime soon, so it makes no sense to drop Xbox One sales, but whatever.
 
Nov 3, 2017
8
#47
I dont think the newest movies/tv shows from universal etc show up on netflix / amazon prime etc day one when theyre in theaters.
Netflix's ones (or in this case Microsoft's) however do. And here the option of getting them on physical media also remains. Plus it's not like all 3rd party releases from now on will be day1 game pass. Overreact much imho.
 

II JumPeR I

Banned
Member
Oct 26, 2017
2,770
Germany
#48
Good. I hope more retailers fight back against this shit.

This is all leading to the end of owning games and its bullshit. Microsoft can fuck off with GamesPass. EA can fuck off with EA Access.
You know you dont have to buy this Subscriptions right? You can still buy your games just fine on the normal way.

So maybe stuff like Netflix and co should fuck off too right?
 

Heart_Attack

Banned
Member
Nov 1, 2017
2,442
#49
Microsoft doesn’t even invest into first party exclusives, and PS4 has all the Japanese support. Retailers are overreacting to this xbox pass.
 
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