Why no Walmart Factor for Video Games

[Porkchop]

They are always talking about the Walmart factor and how their low prices drive others out of business. Grocery Stores Chains can't compete against the Super Walmarts and Mon and Pop store can compete in other areas. There is even talk about Best Buy and C City being pushed in the electronics area.

So why isn't Walmart driving down Video Game prices?

Could it be that they don't sell enough copies to gain the power over the game companies to force them to lower prices, like they do with other manufactures?

I know I avoid Walmart when it comes to buying video games and DVDs. They lock them behind glass and only put one person in the electronis section to ring up purchases and unlock the cases, or if they have 2 people working you have a hard time finding they guy with the key because he is unlocking the case so someone can buy printer ink.

I refuse to put up with Walmart's BS to maybe save 5 cents on a game.

What do you think is the reason for no Walmart factor?

[Cryomancer]

Well, i'm sure this isn't a major factor, but I don't trust walmart for most media, as they censor music cds. Doubt that would be why as I don't see them censoring games (as far as I know, i don't buy there much either). Just my .02 USD.

[izret101]

I got 2 games from Wal Mart and it was when i was out of state so i wasn't crushing any mom and pop stores because they had all already been crushed out there.
But i saved just under 5 bucks on my purchase between price cuts and no sales tax.


ALWAYS BUY LOCAL FIRST CHAINS COME LAST!

[Bratwurst]

You want to know why Walmart doesn't slap low prices on video games? It's because the video game industry is one of the few businesses out there that has Walmart by the balls.

Sony doesn't have to buckle under pressure from Walmart that they'll find some other supplier if they don't provide their stock cheaper. They are exclusive, just as Microsoft and Nintendo are in relative leagues of their own, the only time they cut prices for competition is across the board like on console price drops. The software aspect is entirely regulated within Sony, Microsoft and Nintendo as well, so there is no outsourcing to China to be had, unless Wallyworld wished to endure serious lawsuits involving piracy.

Even if Walmart had some clout in the form of biggest sales as a client, the supplier in this case would simply reward some other retailer if they didn't like the way Walmart so much as looked at them. EVERYBODY wants videogames, they don't care where they go to get them.

Nintendo during the late 80s and early 90s was a perfect example of this phenomena of 'brand dictating to the retailer' rather than the other way around.

[Promophile]

You want to know why Walmart doesn't slap low prices on video games? It's because the video game industry is one of the few businesses out there that has Walmart by the balls.

Sony doesn't have to buckle under pressure from Walmart that they'll find some other supplier if they don't provide their stock cheaper. They are exclusive, just as Microsoft and Nintendo are in relative leagues of their own, the only time they cut prices for competition is across the board like on console price drops. The software aspect is entirely regulated within Sony, Microsoft and Nintendo as well, so there is no outsourcing to China to be had, unless Wallyworld wished to endure serious lawsuits involving piracy.

Even if Walmart had some clout in the form of biggest sales as a client, the supplier in this case would simply reward some other retailer if they didn't like the way Walmart so much as looked at them. EVERYBODY wants videogames, they don't care where they go to get them.

Nintendo during the late 80s and early 90s was a perfect example of this phenomena of 'brand dictating to the retailer' rather than the other way around.

Just got a terrible image in my head, Walmart making their own system. Wonder what THAT would look like.

[Emily]

crap

[Porkchop]

Just got a terrible image in my head, Walmart making their own system. Wonder what THAT would look like.

A light blue XBOX with a big W on the top?

Crap

[Cav]

Yeah, it is kind of funny to think about how far it's come since the original Pong.


Bit off topic here...

Back then Sears would only sell Pong if they could put their own brand on it. The odd part is why did Sears think that "Telegames" would be a stronger brand than "Atari" since they at least had some brand recognition in the arcades? Personally I would've preferred a "Craftsman" Pong, but no such luck.

So, really if that precedent were set in concrete we'd all be playing with our Telegames PS2s (with a big dopey "W" on it).

-Cav

[grimbal]

If Wal-Mart did a system it would be along the lines of one those "plug-n-play" controllers. A full stand alone console format would not fit their business model of low prices. There would be too much cost involved with development because they would have to out source almost everything.

MAYBE you might see something like the Atari 2600 / Sears Tele-games systems, which were virtually interchangeable. Where Wal-Mart has a custom outer shell with the guts of a PS2, Xbox, or Gamecube inside it.

But with hardware cycles rotating every five/six years it still wouldn't be a logical business step for them. Because they would have turn around and dump more money into development or licensing.

Let's face it $ony, Micro$oft, and Nintendough are in it for the money. Either they get it by selling their product to stores or they will by licensing it out. Personally I feel they would rather not go the licensing route either.

And as far as censoring games. Wal-Mart does not have the games censored in any way. Generally, with games if they don't like the content they will not sell it.

With music the record companies provide the edited versions so that Wal-Mart will sell it.

Anyways, just my humble opinion.

[pixelsnpolygons]

Wonder what THAT would look like.

Probably a lot like this " " - you know, their little yellow faced Roll Back mascot they have. But anyway, I'm not sure why Wal-Mart isn't driving down video game prices - Target, where I work, frequently does. In fact I'd say it is one of the best places to get new games for cheap. Big games often either come with a free $10 gift card or are $10 to $13 cheaper than the usual price. But even so, thankfully Target doesn't have a stranglehold of the industry either - I'd hate that. At the moment, things are pretty good and you can get what you want just about anywhere. I'd hate it if I had to start going to Wal-Mart because their games were 20% cheaper than elsewhere or *gasp* if they started having exclusives... like if you could only buy Halo 2 at Wal-Mart for the first 3 months.

[izret101]

*gasp* if they started having exclusives... like if you could only buy Halo 2 at Wal-Mart for the first 3 months.

The dealer i go to would then buy aton of games from walmart because they know people would be willing to pay 5 extra bucks not to have to deal with a long drive and morons.

[SoulBlazer]

I don't buy new games there (with a few exceptions -- I recall getting Final Fantasy Tactics and FF8 when they were brand new there) -- but they are great for getting bargin games. I've bought numerous PC games there for very little. With EB and GameStop not having large PC selections anymore, Wal-Mart actually has a better selection in most cases. They also carry games longer then many other stores will.

[sirgeoph]

Probably a lot like this " " -

dammit! beat me to it!

[icarwngs55]

Video Game companies apparently hate hate HATE Walmart....mainly due to their slash and gash price attitude...Nintendo Especially...One main reason is due to them not doing presales and also not having a variety of stock in video game titles for the most part....Therefore Nintendo for example would rather give its breaks to Gamestops and EB's due to presale and number or titles

A perfect specific example of this is the Nintendo DS....I know I know people think it is impossibel to find and no one will get one for Christmas BOO HOO HOO...Sorry my ignorant white trash friends (Not you guys Walmart shoppers...Though I have my suspicions) you can find them you just have to keep at the Gamestops and EB's...My gamestop recieved 60 preorders of DS's we got them the were allpickedup by black friday...Black Saturday so to speak we recieved 60 more from Nintendo due to a good presale and they like us...Overall Nintendo hates walmart and bestbuy and target...thank you

Mike

[Ed Oscuro]

no outsourcing to China...unless Wallyworld wished to endure serious lawsuits involving piracy.

Wal*Mart did something like that with the Tommy Hilfiger ripoffs a few years back, and a number of lawsuits have followed as a result. They definitely don't need to get the game folks after them as well.

[Ed Oscuro]

Probably a lot like this " " -

dammit! beat me to it!

Actually it would look like this:


That's me, kicking it down the street back to Wal*mart so I can get a refund (though I'm wondering what I was doing in Wal*mart in the first place - last items I bought there were the Zero Mission strat guide - hard as hell to find one in decent shape - and Blowout, which went over REALLY well x_x

[Captain Wrong]

You want to know why Walmart doesn't slap low prices on video games? It's because the video game industry is one of the few businesses out there that has Walmart by the balls.

Sony doesn't have to buckle under pressure from Walmart that they'll find some other supplier if they don't provide their stock cheaper. They are exclusive, just as Microsoft and Nintendo are in relative leagues of their own, the only time they cut prices for competition is across the board like on console price drops. The software aspect is entirely regulated within Sony, Microsoft and Nintendo as well, so there is no outsourcing to China to be had, unless Wallyworld wished to endure serious lawsuits involving piracy.

Even if Walmart had some clout in the form of biggest sales as a client, the supplier in this case would simply reward some other retailer if they didn't like the way Walmart so much as looked at them. EVERYBODY wants videogames, they don't care where they go to get them.

Nintendo during the late 80s and early 90s was a perfect example of this phenomena of 'brand dictating to the retailer' rather than the other way around.

That is the answer absolutely. Well said, my processed meat friend.

There is an interesting issue here as someone mentioned. We all should be thankful that the ratio of power is in the hands of Sony, Microsoft and Nintendo for one reason. I guarantee we'd see the same sort of censoring of games you see in music if Wally World had the clout to demand it.

[PapaStu]

Well, i'm sure this isn't a major factor, but I don't trust walmart for most media, as they censor music cds. Doubt that would be why as I don't see them censoring games (as far as I know, i don't buy there much either). Just my .02 USD.

/me throws Cryomancer's 2 cents back onto the table.
PLEASE get your info right before you go and spout off crap about Wal*Mart and their music. I work for the major vendor that services about 75% of the Wal*Marts in the country and am responsible for the Music, Movies, Books and Childrens books in the stores so this is my area of Wal*Mart experience.

At NO point does walmart censor music. They CHOOSE to only carry edited music (made BY the labels, and have since the start of the Parental Advisory back in the early 90's). Have you paid any notice that Wal*Mart carries Rated R as well as the Uncensored movies in their stores, just not explicit music? Well here's the reason as to why.

The Advisory sticker is just that, an advisory that there is Explicit content on that album. That explicit content can be as little as a single use of Damn, or nothing but explicit racial and sexual comments. There is NO distinction between them on the labels and to make matters worse some labels dont put the advisorys on their albums. So to prevent issues, Wal*Mart has made the command decision (as Stupid as I personally think it is, but it is one that makes business sense) to just carry edited music UNTIL the record labels actually come up with some sort of a better method to rate whats on the album.
However when you look at movies, you can see that its Rated "R" for violence, sexual content and language ect ect. They carry them, but its NOTED on the product why its labeled as such. Music just doesnt have that kind of system.

**Back to the topic**

As to why I'm pretty sure that Wal*Mart doesnt get a real cut on games is the same that no other retailer does. The production cost to the games is set when they go to publish and set MSRP. The game companies need to make back their costs, after they pay the approprate licensing fees and such to Sony or MS or Nintendo for the games and they need to cover R&D on the games just like any other business. They are forced into fixed costs, so they pass them onto the stores as they recieve them. The same could be said for the systems themselves, Wal*Mart doesnt sell the system but for mere pennies under the msrp, they dont get any special treatment because they have the possibliity to sell more units than all the GameStop stores combined. Systems cost x amount to make, and if you sell them for less than that and dont factor in the hundreds of millions in R&D for them, theres no point to sell the systems at all because you will continue to take a huge hit per system.

[frodo2968]

Hmm, well I bought a sealed GBC copy of Zelda: Oracle of Ages for $14.88.

[sirgeoph]

@PapaStu: That's a really good point. I never looked at it that way. Thanks for the insight!