Presell or face certain doom...what?

[CrazedClerkthe2nd]

Despite the fact there are many elements to the business of selling video games, my company has recently become insanely obsessed with having us presell as many copies of as many games to as many customers as we can.

I was on a conference call the other day, and, according to the corporate rep who was running it, the following things would happen to the store if we did not presell enough games:

- We would not have enough copies of hot new games to sell to all the customers who wanted it (we usually get sent 2 extra copies per presell, meaning if a game gets 6 presells, we will be sent 18 copies)

- Customers would get tired of our explanations for not having adequate stock on hand and take their business elsewhere.

- Customers would rate us negatively on the surveys if there were not enough games available because we did too few presells.

- Our trade in levels would drop significantly because the low presells would also reduce the number of people who buy the game and thus, the number who trade it back in when they are finished.

There were more but you get the point.

Now regardless of whether or not we agree with any of these, our butts are now being held to the fire to get presell numbers up. I should point out we were allowed no input or questions on this call. It was an "I'm not asking you, I'm telling you. Do it or else." Type of thing.

Did I mention this is the 3rd call this week we've had on this subject? I do not understand the obssession. I really don't.

[Irving Patrick Freleigh]

I was on a conference call the other day, and, according to the corporate rep who was running it, the following things would happen to the store if we did not presell enough games:

- We would not have enough copies of hot new games to sell to all the customers who wanted it (we usually get sent 2 extra copies per presell, meaning if a game gets 6 presells, we will be sent 18 copies)

Well gee, if people aren't willing to reserve a game before it comes out, maybe (just maybe!) that means there isn't much of a demand for it anyway, so the first "consequence" is a load of dookie.

Everything after that is a bigger load of dookie because it derives from the one before it.

Did I mention this is the 3rd call this week we've had on this subject? I do not understand the obssession. I really don't.

Since you use the term "pre-sell," I assume that means you collect part of the price of the game up front?

If so, the cynical part of me thinks corporate figures some people won't be arsed to pick up their game and get back the money they paid to have it reserved, so it just goes into their pocket.

[csquared]

So let me get this straight...

If they can't make their profits from presales, they want to:
1. Lose all chance of making a profit.
2. Give the company a bad name.
3. Force customers to go to the competition.
4. Drive themselves out of business.

Got it.

[DerangedHermit]

If this is Gamestop (and it most likely is unless you're from out of the country)...ugh, I feel sorry for you.

[Kaylyn]

My husband finally quit his job at the GameStore for these very reasons. He was tired of the corporate suits saying "do this or else" when they had no idea how their "ideal business model" actually worked in the real world. I read this to him and he just smirked and said, "I know where they work!" Just think, it's pre-sells and reserves this week. Next week it's subscriptions. The next week it's trade-ins. *sigh*

[Dreamstalker]

Well gee, if people aren't willing to reserve a game before it comes out, maybe (just maybe!) that means there isn't much of a demand for it anyway, so the first "consequence" is a load of dookie.

Or people who don't follow the game franchise religiously/haven't heard of the game beyond flashy commercials are watching their wallets and waiting for post-release reviews or recommendations before they pick it up. That's usually what I do.

[trailerparkmedic]

I heard somewhere that video game sales have been declining. I'm guessing this is a knee-jerk reaction to that, especially since whatever middle management person came up with it can just blame the stores if bad things happen.

[Andara Bledin]

The recession has hurt everything, with video games being one of the less-effected areas. But, while sales figures had been dropping, they've started going up again, with the latest data showing growth in March.

The problem for the B&M shops is that there's been a massive surge in download sales, which really cuts into stores' bottom lines. As an example, there's a Humble Indie Bundle deal going on right now that allows you to pay what you want (minimum price is 1 penny) for five indie games (one being World of Goo, which is already pretty huge), and then you get to decide how your payment gets split between the developers, Child's Play, and the EFF.

^-.-^

[Fire_on_High]

Steam tends to have some utterly ridiculous deals at times also.

Currently they've got Civ 3 with all the expansions for $1.25. How can you beat that? I've seen lots of similar super cheap deals over time too...Half Life for 99c, Half Life Source for $2.50, etc.

[HYHYBT]

Sounds like your company is dangerously close to going under.

[Dreamstalker]

The store down the street from me is pretty cool--well organized, enthusiastic employees who really know their stuff--but the majority of locations around here are a mess. The mall stores especially seem to be crammed into storefronts that are way too small.

[Hyndis]

The recession has hurt everything, with video games being one of the less-effected areas. But, while sales figures had been dropping, they've started going up again, with the latest data showing growth in March.

The problem for the B&M shops is that there's been a massive surge in download sales, which really cuts into stores' bottom lines. As an example, there's a Humble Indie Bundle deal going on right now that allows you to pay what you want (minimum price is 1 penny) for five indie games (one being World of Goo, which is already pretty huge), and then you get to decide how your payment gets split between the developers, Child's Play, and the EFF.

^-.-^

This.

With Steam and Impulse my wallet has been crying lately, but I haven't bought a game from a brick and mortar store for a long, long time. Its been several years.

Why buy a "new" game that has already been opened but you nonetheless pay full price for (Gamestop seems to not actually sell new games, most everything they sell is opened and thus used, which is why I absolutely refuse to go there) when you can buy it without even needing to leave the house and have it automatically installed and kept up to date for you?

Oh, and its much, much cheaper than buying it at a brick and mortar store.

Some of those Steam sales are CRAZY.

[Indica]

In 'accounting speak', what happens is when the presell happens, the company books that as revenue. Nevermind that the buyer may not follow through... the company has already booked it as revenue. It's the 'We just KNOW the money is coming in so we're going to already count it' train of logic.

There's a reason I didn't go into accounting, it makes my head hurt.

[Dreamstalker]

Figure that a certain percentage of people who do put down a deposit and possibly even put down more money toward their order are never going to remember to pick up the game, which the receipts seem tailor-made for (that thermal ink disappears in short order if the receipt is carried around). I'm not sure how much revenue that brings in, but I'm willing to bet it's quite a bit.

What a lot of people probably do is check the price with GameStore, then see if Amazon has it for cheaper (I've actually seen a few "GameStoreXXX" seller IDs on video game listings).

[Geek King]

- We would not have enough copies of hot new games to sell to all the customers who wanted it (we usually get sent 2 extra copies per presell, meaning if a game gets 6 presells, we will be sent 18 copies)

I am calling complete and utter bullshit on this one. The number of times I've decided I had the money for a game on release day, then walked into the store only to be told, "We only got enough to cover pre-orders" would fill a dozen sets of fingers and toes. I've gone to amazon for 90% of my gaming needs, and either BB or used movie/CD/DVD/games stores for emergancy hardware needs. I'm done with the preorder or you won't get it mentality.

But they are right about one thing. I did walk.