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Toys R Us

Amazon's Video Games Trade In Works. Perfectly.

Yesterday, I wrote that Amazon will kill Game Stop (and Toys "R" Us) and others who are trying to compete in the video game market. Not only does it make no sense as to why you would purchase new games at traditional stores like Game Stop (more expensive and more hassle) - but it makes no sense why you would trade your old games in at those locations. Amazon (and eBay and Half.com) are more convenient and extract more value.

Today, Game Stop's CEO Dan DeMatteo responded to the press and said that Amazon would flop entirely... citing that the mail-in experience as the main issue. So I put Amazon's new system to the test and, in less than 90 seconds, had:

- a voucher for ~$20.00 for two old video games (far more than I would get at Game Stop) - a printed packaging slip - a printed shipping label with postage already paid for

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

DeMatteo is familiar with the mail-in videogame trade model. GameStop tried it several years ago, to no avail. "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."

In the case of Amazon, consumers have to wait for shipping and for the gift card to be processed before cashing in on trade-in value.

"It didn't work for us, and I can't see it working for them," DeMatteo said.

It might not have worked for Game Stop, but that isn't an indication that it won't work for Amazon. It already worked perfectly for me.

Why Would You Ever Purchase Video Games Off Amazon?

This morning, Motley Fool asks whether it is game over for Game Stop as Toys "R" Us in encroaching into their territory of video game buying / selling / trading. ... who cares?

I continue to ask why you would ever shop at Game Stop? Or Toys "R" Us or the Playstation Store (now closing) and so on for Video Games?

I just bought MLB The Show 2009 for Playstation 3 on Amazon. It arrived on 'opening' day, was discounted by 5-10% and didn't include taxes. Furthermore, it was entirely hassle free: a few clicks on Amazon.com and it arrived at my front door.

And Amazon now has a trade in program to save an additional 10% (which is about what you would get at Game Stop... if you want to extract the maximum value of trade ins, you are best served on eBay or Half.com):

amazon

The same question stands for purchasing DVDs at Borders and Barnes & Nobles. They cost nearly double the price of that found on Amazon and have far worse selection. Unless you need a movie specifically at that moment - these purchases makes no sense.