GameStop will get downstream revenue (from digital downloads/content) on each Xbox they sell

[CliveLH]

I feel this need a new thread, but feel free to close it if you think it's not.

As part of GameStop and Microsoft recent strategic agreement, GameStop will get revenue on digital game sales for each device GameStop brings into the Xbox ecosystem.





It mostly means GameStop stores now have incentive to sell Xbox Series S and Xbox All Access over PS5 Digital Edition.

 

[Dreams-Visions]

That's a helluva incentivization approach for GS staff.

Rather brilliant.

 

[jroc74]

Damn, that's good for them.

 

[jediyoshi]

GameStop will get downstream revenue (from digital downloads/content) on each Xbox sold

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As part of GameStop and Microsoft recent strategic agreement, GameStop will get revenue on digital game sales for each device GameStop brings into the Xbox ecosystem.

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What a rollercoaster

 

[Kromis]

So this is how GameStop game survives in the digital world...very interesting.

 

[OnionPowder]

This is how you get the grandparents.

 

[Man Called Aerodynamics]

Does this mean that Game Stop employees will be incentivised to push customers toward Xbox over PS5?

 

[CliveLH]

What a rollercoaster

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I'm not sure I follow ?

 

[Deleted member 10629]

This is how you get the grandparents.

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Exactly lol. No more confused grandmas, Era can rest easy.

 

[MrCibb]

Damn, that's quite generous if it's the entire lifespan of each console they sell. I imagine Gamestop will be pushing the Series pretty hard, then.

 

[PlanetSmasher]

This should honestly be the standard for ALL digital platform sales across the board, not used as a cudgel to convince staff to push one platform over another.

 

[TitlePending]

There would need to be some sort of deal where going to Gamestop to buy a digital copy is cheaper than the online store; otherwise, why go through the effort of driving there vice just buying it from one's house?

 

[bsigg]

Really interesting way to convince GameStop to really push the Series S. Curious to see how they works out over the next couple years.

This should honestly be the standard for ALL digital platform sales across the board, not used as a cudgel to convince staff to push one platform over another.

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So you think Sony and MS should just be willing giving up the cut they're taking back by going all digital to support Gamestop/others, just because?

 

[Iori Fuyusaka]

Does this mean that Game Stop employees will be incentivised to push customers toward Xbox over PS5?

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Certainly sounds like it.

 

[Deleted member 10629]

Does this mean that Game Stop employees will be incentivised to push customers toward Xbox over PS5?

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Yes, probably.

 

[Septimus]

Lol I feel sorry for people trying to buy stuff when next-gen consoles are more readily available. Gamestop was already really shitty in aggressively pushing stuff. With this? Good lord, I can only imagine someone trying to buy a PS5 multiplat or accessory lol.

 

[catboy]

Does this mean that Game Stop employees will be incentivised to push customers toward Xbox over PS5?

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i've heard that gamestop employees have already started dumping excess ps5 stock outside and setting it alight!

 

[K' Dash]

is this even legal?

 

[Cruxist]

Wow. Welcome to the Xbox store, where we sell all your Xbox needs. What Xbox can I Xbox you in today?

Good for Gamestop. I hope the Xbox stuff takes up the space of some of the larger collectibles that always end up on sale after several months instead of the other systems. I know that's probably not the case, but I can dream.

Still, if this keeps the one major game retailer around, it's a net positive.

 

[UnderTheKillingSun]

Well at least we stop the concern trolling about "confusing names".

Grandma about to understand everything perfectly.

 

[MouldyK]

There would need to be some sort of deal where going to Gamestop to buy a digital copy is cheaper than the online store; otherwise, why go through the effort of driving there vice just buying it from one's house?

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It's on the consoles sold.

 

[jwhit28]

This should honestly be the standard for ALL digital platform sales across the board, not used as a cudgel to convince staff to push one platform over another.

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Is there something in the Microsoft deal preventing Gamestop from setting up similar deals for other hardware? I doubt Gamestop would say no to Nintendo or Sony.

 

[Chaystic]

So Gamestop is going to be pretty biased towards one console.

 

[UnderTheKillingSun]

is this even legal?

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No.

It's Phillegal.

 

[SpottieO]

Does this mean that Game Stop employees will be incentivised to push customers toward Xbox over PS5?

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Yes. That's likely the case.

 

[Pancracio17]

This is interesting. I guess this is the way gamestop survives another few years.

i've heard that gamestop employees have already started dumping excess ps5 stock outside and setting it alight!

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The horror!

 

[Man Called Aerodynamics]

Certainly sounds like it.

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Definitely interesting. I wonder what form this will take inside the store, specifically. Customer comes into the store without a preference, they steer them towards Xbox and don't mention PS5? Customer comes in the store looking for PS5, do they try and sell them on Xbox in addition?

 

[Retrocide]

Well that partially explains why Microsoft felt comfortable closing almost all of it Microsoft stores, interesting.

 

[Lant_War]

Kinda surprised MS ain't trying to let retail die, great news.

 

[Deleted member 14377]

Bigger XBox wall. Push SONIY pre-owned so gamestop make more off pre-owned. Probably increase trade in values of Sony games to incentivize that. More stock of new Xbox titles and if they don't have them, push gamepass/digital purchases.

 

[nextgeneration]

Thanks for creating dedicated thread for this. Will be interesting to see how this plays out as we transition into next generation.

 

[Bigkrev]

So is this for each xbox sold at a Gamestop? Each Xbox sold anywhere? Giftcards bought at Gamestop? If it's just that Gamestop is literally going to get a small slice (like, a fraction of a percent) of anything relating to Xbox sold anywhere, this is gigantic, but if it's just for stuff sold in store, it doesn't seem like much to incentivize Series S, and Used games are a gigantic profit margin for them

 

[Goldenroad]

I wonder what kind of share of that downstream revenue they are given. Are they given a cut of Game Pass subscriptions too, or just sales?

This is pretty smart. At the end of the day these manufacturers still need retail to push actual consoles and accessories, even if digital accounts for 90% of game sales at the end of this generation.

 

[Catshade]

Ugh, I hope the employees are above using console wars rhetoric on you when you're just trying to buy a game.

 

[GING-SAMA]

Look like XBOX do all they could to re-win US market.

(Please, do some great things in EU too 😁)

 

[platocplx]

Interesting and yeah pretty much this makes gamestop incentivized to push xbox.

 

[YozoraXV]

Surprised MS is so willing to give money away to Gamestop, this will definitely get them to push Xbox more.

 

[bsigg]

There would need to be some sort of deal where going to Gamestop to buy a digital copy is cheaper than the online store; otherwise, why go through the effort of driving there vice just buying it from one's house?

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They're likely tracking serial numbers meaning any sale on those devices from the MS Store on Xbox results in credit going to GameStop. It's not just an in store thing for digital codes.

 

[Toumari]

How exactly would that work though. If a digital game is purchased on a device sold from GameStop, how will that revenue find itself back to them?

 

[SpottieO]

There would need to be some sort of deal where going to Gamestop to buy a digital copy is cheaper than the online store; otherwise, why go through the effort of driving there vice just buying it from one's house?

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I think MS will be tracking serial numbers of xboxes sold at GameStop. They will know when one of those Xboxes buys a game digitally and GameStop gets some revenue. You don't need to go in to the store to buy digital games.

 

[Agent Icebeezy]

That's really smart business. Never thought they'd do this.

 

[UnderTheKillingSun]

Definitely interesting. I wonder what form this will take inside the store, specifically. Customer comes into the store without a preference, they steer them towards Xbox and don't mention PS5? Customer comes in the store looking for PS5, do they try and sell them on Xbox in addition?

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You can bet your booty on a MASSIVE pr push when the Zenimax titles start dropping exclusively on the Ecosystem.

Probably a bigger focus on pre-paid cards/game pass card sales if titles aren't available.

 

[Nephtes]

So now instead of asking you if you're interested in a subscription to Game Informer at checkout they'll ask if you're interested in an Xbox Series S?

 

[CloudsFromSpace]

is this even legal?

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It's very legal. If there's not an exclusive dealings clause (saying Gamestop can't make this same agreement with Sony), then there's nothing stopping Sony from doing the same thing. And even if there is such a clause, these sorts of agreements are all over the place in all sorts of industries. Nothing illegal about it.

 

[BoxScar]

Me dumb: does this mean if one was to buy a Series S from Gamestop they would get revenue from future purchases on XBL?

 

[Iori Fuyusaka]

How exactly would that work though. If a digital game is purchased on a device sold from GameStop, how will that revenue find itself back to them?

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If a digital game is purchased using a console with a serial number sold at GameStop, GameStop will get some of the revenue.

Me dumb: does this mean if one was to buy a Series S from Gamestop they would get revenue from future purchases on XBL?

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That's exactly what it means.

 

[K' Dash]

No.

It's Phillegal.

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lol

 

[UnderTheKillingSun]

So now instead of asking you if you're interested in a subscription to Game Informer at checkout they'll ask if you're interested in a Xbox Series X?

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GamePass subscription. All Access. Big ass push on Starfield/Zenimax titles/XGS titles.

 

[Serenitynow]

What stops every other retailer from asking for downstream digital revenue from the Xboxes they sell?

 

[CliveLH]

So Gamestop is going to be pretty biased towards one console.

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Yes and no.
I don't think they will want to stop selling PS5 and Switch that are most likely going to outsell Xbox. However it's terrible news for the PS5 Digital Edition.