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Toys R Us and lower video games sales


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This is from CNNMoney.com

Toys R Us Inc. said Wednesday its quarterly profit fell, hurt by plunging video game sales at its U.S. stores and on charges from closing its Kids R Us and Imaginarium stores.

 

This is the first negative video games sales report I've seen in some time. Is there a down turn in video games sales I've missed? Is this just in relation and in line with a slower economy? Or is this more isolated to Toys R Us and related to how they handle thier video game sales. I'm curious as I was under the impression that video games sales were a very strong industry of late.

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I believe this is mostly due to the fact that Toys R Us doesn't have many game sales, so many consumers choose to buy their games from other more competitive stores. I go to places like KB Toys and Toys R Us and they still sell brand new copies of Eternal Darkness for $50. It's no wonder why they're hurting. They never seem to want to discount their merchandise to stay competitive.

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Or is this more isolated to Toys R Us and related to how they handle thier video game sales.

 

This'd be my guess, for the reasons danger9777 listed too. Toys 'R Us has no concept of price cuts and consumers may not always be the most clever bunch, but they can damn well spot a sale a mile away ;).

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Its probably more of a report on the way Toys R Us handles their video games sales and where most people actually goto buy video games. I know my first choice on buying a video game is never Toys R Us, I hate walking into that department of that store, Its always a big mess, and they can't always be trusted to get the new titles right away such as EB and those types of stores. The only time I really thought I had to goto Toys R Us to buy a game was when they had their 3 for 2 sale. What a sale that was, especially since RS3, Top Spin and Amped 2 came out that week. If they ran more sales like that they'd probably do better, I know many people took advantage that week.

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I much prefer to buy from a Gamestop or EB because the employees are usually gamers too and you can usually engage in some conversation about your purchase. At places lke Toys R' Us I dont believe there is the urgency to get a new videogame on the shelves immediately which curbs alot of us "gotta have it the first day" people from buying there.

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I believe this is mostly due to the fact that Toys R Us doesn't have many game sales, so many consumers choose to buy their games from other more competitive stores. I go to places like KB Toys and Toys R Us and they still sell brand new copies of Eternal Darkness for $50. It's no wonder why they're hurting. They never seem to want to discount their merchandise to stay competitive.

 

I think that pretty much nails it. When BB (or CC or Target or) has what I want for $39 instead of $49, I'm going there first. Only time I really shop at TRU is when they have their 3 for 2 sales on all games.

 

Ah well, such is the way of our capitalist consumer culture. Compete or die...

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Originally posted by Baiter@Mar 3 2004, 11:46 AM

I avoid buying video games from TRU as they won't accept a return without the original receipt. Pissed me off enough to go else where. :evil:

I can see why they do that though Kev, I remember back in the N64 days someone we knew go a hold of a bunch of "hot" coppies of a certain game at a great price and took them back to a Toys R Us to get a TON of store credit. :D

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Originally posted by Bruce B@Mar 3 2004, 11:48 AM

At places lke Toys R' Us I dont believe there is the urgency to get a new videogame on the shelves immediately which curbs alot of us "gotta have it the first day" people from buying there.

I feel this is one of there bigger problems. I know that is a biggie for me anyway.

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Originally posted by Snakefish@Mar 3 2004, 10:57 AM

I think that pretty much nails it. When BB (or CC or Target or) has what I want for $39 instead of $49, I'm going there first. Only time I really shop at TRU is when they have their 3 for 2 sales on all games.

Not only that, but the TRU's near me in the city charge MORE than retail for new games. A lot of new games are $54.99 instead of $49.99, believe it or not.

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In terms of cost TRU are pretty reasonable (sometimes) in the UK, actually, and I've bought my last two Gameboys from them.

 

But I'll only do it when the deal its pretty amazing, as the process of picking up a ticket, queueing to pay, and then queueing again to pick up the product typically takes over 30 minutes. Its an absolute nightmare, full of screaming 3-year-olds, piped S-Club muzak and parents aiming pushchairs at your ankles for daring to be in front of them in the queue.

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The only time I really thought I had to goto Toys R Us to buy a game was when they had their 3 for 2 sale.

Same for me. I'd say I generally don't have loyalty to any particular retailer, it's all about who has the best price/deal. If TRUS has a weak competetive policy, CompUSA has a terrible one. There prices are jacked to the limit, I don't understand how they can still be taking in new inventory, there's gotta be no room with all the old titles still sitting there.

 

The worst video game pricing structure I've ever seen was Sears back in the early to mid 1990's. It was so bad that I haven't attempted to even look at thier games since then. (hell, they may not even sell games anymore for all I know). Basically I remember games selling for $50 elsewhere Sears would have for $70-$75 or even $80. Who bought them I have no clue. Of course "budget titles were in the $50 range. Exactly opposite of competetive.

 

I have since, out of spite, stayed clear of Sears far all purchases. I can see TRUS trying to sell at max price, they just won't get my money, but selling far beyond max price is just irresponsible in an educated consumer driven economy.

 

EDIT

Not only that, but the TRU's near me in the city charge MORE than retail for new games. A lot of new games are $54.99 instead of $49.99, believe it or not.

Funny, Josh wrote this as I was posting my response. TRUS is getting thier just reward, IMO.

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The last time I bought a game new at TRU was when I picked up Tecmo Super Bowl for the Playstation back in 1996.

 

Now a days I just keep my eyes open for deals that they might have. I just hate their system of grabbing a tab, purchasing the game at the register, then waiting for someone to get the game from their "gaming cage." It's just an old silly system for LP reasons.

 

I even went and had Best Buy match the 3 for 2 deal, instead of having to deal with TRU.

 

Glen

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Originally posted by Thrillho+Mar 3 2004, 12:09 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (Thrillho @ Mar 3 2004, 12:09 PM)</td></tr><tr><td id='QUOTE'> <!--QuoteBegin-Baiter@Mar 3 2004, 11:46 AM

I avoid buying video games from TRU as they won't accept a return without the original receipt. Pissed me off enough to go else where. :evil:

I can see why they do that though Kev, I remember back in the N64 days someone we knew go a hold of a bunch of "hot" coppies of a certain game at a great price and took them back to a Toys R Us to get a TON of store credit. :D [/b]

Gee, who could of that been? ;)

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I much prefer to buy from a Gamestop or EB because the employees are usually gamers too and you can usually engage in some conversation about your purchase.

 

Trust me,being a former TRU R-Zone employee - this is very true.

So is getting the new games out on time - though i did my best when I worked there.

 

My shopping habits are simple. Who has the best selection and/or best deals?

TRU usually has neither.

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I think people are underestimating TRU's impact on the market. They're one of Nintendo's biggest "supporters", with a large chunk of that market. Pretty much everyone on this site is "hardcore" - TRU appeals to parents & casual shoppers, and I imagine sells through a good chunk of GBA licenced games every weekend for example.

 

Wish Camp would comment...

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the Toys R us i stop into once and a while is one of the busiest i have been in. The Video game section is always busy. Like brian said though, the GBA section is always the busiest. Kids with there parents buying GBA games. while the rest of the section has no one in it.

 

capt

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TRU appeals to parents & casual shoppers, and I imagine sells through a good chunk of GBA licenced games every weekend for example.

 

This is true,but in my area at least - more & more parents learn about the EB's & Gamestops of the world - & those have cut into business here in S.E. New England.

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Well i currently work at TRU, in the video game department (R-Zone) and personally i would rather buy my games at Gamestop, BB, or EB if it wasn't for the discounts i can get picking up my games at nearly half price :D . But Like you guys said TRU just doesn't run deals on new releases every week every game released is MSRP, when another store will have it $10 less. TRU ads tend to deal more on bundles on consoles and deals on GBA games or Game Cube games usually budget titles. Also if you notice when u walk in the store games are kept behind the counter and display boxes are on the floor to represent the stock of a game for each console, this works to deter theft but not sales. Customer will tend to walk out of the store with out asking for the game there looking for or just plain not seeing anything there interested in due to lack of displays empty shelves, when games are in stock. I know at the store i work out it is a pain in the ass keeping the games and prices displayed on the floor, and sometimes we have the game but not the display and prices are missing from the fixtures and customers get to counter just to find out it's to much money and leave with nothing. Most of this is do to TRU not shipping stock and lazy employees not displaying the games or replenishing the the floor after sales. Also in my store me and this one other guy are the only gamers and know are stuff 3 other employees are clueless as to video game but hey TRU hired them. Most of the customers i deal with are ladies buying for there kids or a gift for someone else kids and they want something cheap, i rarely see any gamers buy anything there they sure show up for the buy 2 get 1 free though.

 

Now know why i was threatened to lose my job by Corporate DM and LP who visited the store last week. Are store is number one in the region on video games sales but my World Leader was told that if the floor was not kept stocked and up to date with what is in stock and prices they would find someone who could.

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Guest Bryan

G.O.D. is that you? :green:

 

Local TRU stores have outdated pricing/advertising strategies in their gaming departments. Wal-Mart is exactly the same. Games that have been selling at $19.99 for a year are still $49.99 at these stores. The only use I have for stores like this is price-matching. They have more stock in some games because most people don't go there to buy'em.

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