GameStop CEO: Amazon will fail at game trade-ins

Amazon's recent video game trade-in announcement raised the hackles of the bricks and mortar crew. When will all games be digitally available?

Earlier this week, Amazon announced a new program for customers to trade in used video game titles in return for credit at Amazon.com.

This program should be able to work for Amazon thanks to their superior inventory and distribution system. Expanding into a realm such as used games is probably a relatively low-cost endeavor that should will squeak enough profit to be worth it.

Nonetheless, it didn't take long for GameStop CEO Dan DeMatteo to call the program a failure in an interview with Edge:

"I give the probability of this working at zero," DeMatteo told Edge in a Thursday phone interview.

"Electronics Boutique also tried it and failed. There's no consumer acceptance. With consumers, there is an immediacy for currency when they want to buy a new game," he says. "It didn't work for us, and I can't see it working for them.

"...While customers wanted to buy a new, say, Killzone 2, they weren't going to wait the week or two weeks it took to get the credit, then buy Killzone 2. They want Killzone 2 the day it comes out. They need the money and the credit right now."

I have to agree that gamers want their fix as soon as possible. The immediacy of access to new games is what I would have expected from Amazon, but I suppose there is a big enough market regardless.

In light of their technology prowess, it's still a bit surprising that this announcement wasn't for a cloud-delivered, digital game distribution platform like Steam.

You can follow me on Twitter @daveofdoom

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Software
About the author

Dave Rosenberg has more than 15 years of technology and marketing experience that spans from Bell Labs to startup IPOs to open-source and cloud software companies. He is CEO and founder of Nodeable, co-founder of MuleSoft, and managing director for Hardy Way. He is an adviser to DataStax, IT Database, and Puppet Labs.

 

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