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A message to Michael Pachter - STFU
neveranything | 10:01 AM on 08.13.2009 10 comments




Going back over Michael Pachter's track record of "predictions" and "analysis", two things come to mind.

A) How many times has he created a bias / bad rap towards an entity within the industry just by pulling stuff out of his ass

and

B) I can make predictions too, and be right. Hell, I'll do one right now. "Sometime in the near future, someone will try to shove a Wiimote up their rectum." You know there's some nutball freak out there who's going to try it.

One of the latest predictions he's pulled out of his crystal ball comes via GamePolitics, where Pachter predicts that BestBuy's new "Retail games at Used prices" plan will fail.

I don’t think it will do well. The price match means that Best Buy either cuts their profit per game in half, or wipes it out altogether. I don’t think that they can afford to sell $60 games for $50, and don’t think that it will be effective in the long run. If it does well, then GameStop will cut used game prices to the point where Best Buy can’t match without losing money.

So, BestBuy can't afford to lose $10 on the sale of a retail game, a game that's already been marked up to the point where they're going to make a decent profit in the first place. But wait, BestBuy sells more than games, right? Couldn't that $10 lost on the sale of the game be recouped by getting the customer to buy a CD as well? What if they're also tempted into buying a DVD, that's an extra $20 BestBuy wouldn't have gotten if they didn't lure that customer away from GameStop. But what if Gamestop slashes their average retail price for a game by $10, BestBuy's price would go down $10 as well, making a $60 game $40, and leaving an extra $20 in that customer's pocket to buy who knows what. A little increased foot traffic can easily lead to increased impluse buys.

Truely, this man is not the Nostradamus of gaming that he wants to be.



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10 comments | showing # 1 to 10

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blehman's Destructoid Blog
How much did Pachter pay you guys to suck his dick?
bloodylip's Destructoid Blog
Since Pachter gets paid big bucks to make his predictions, I doubt your blog is going to get him to STFU, unless you start ponying up the big bucks, or you get on your knees.
Deathofthedead's Destructoid Blog
Although I think you're right (on both points: Pachter's an idiot, and Best Buy can afford to take a loss on some games to get you in the store looking around at their other, more expensive, stuff), I gotta say that it's a misconception that new games are "marked up to the point where they're going to make a decent profit". As a gaming retail veteran, I can tell you that, of the $60 you spend on a new game, only about 7 bucks is profit for the retailer. That's why GameStop has such a focus on used merchandise, the profit margin's a whole lot bigger.
covah's Destructoid Blog
THE WII HD IS COMING! THE WII HD IS COMING! THE WII HD IS COMING!
Tristero's Destructoid Blog
Pachter isn't trying to win bar bets on how a sports game will play out. He's saying stuff to try to influence the market, regardless of its ultimate truth value or prediction accuracy. It has value in that his statements can remotely but cumulatively influence the direction of stocks. Just like Activision isn't REALLY going to stop making games for Sony platforms. They just want to give the impression of an aggressive tough-talking CEO to their investors. These people operate on a different plane than videogame enthusiasts like you and me. I wouldn't take their statements at face value. You can make an argument that their practices have a negative or positive effect on the industry, but saying they're bad at predicting is missing the point. Just my two cents.
TheToiletDuck's Destructoid Blog
Yes, you can be just like Michael Pachte.. yeah alright.. go right ahead. You can start by earning two PHD's.

You know why he's not the Nostradamus of gaming? because Nostradamus never get paid far out the ass for his predictions.

These publicly available 'predictions' are marketing for his consultancy work which he gets paid pretty damn well for. The guy has carved out a damn good niche, and i say full credit to him.
manasteel88's Destructoid Blog
the markup on new games isn't that much. that's why whenever you go into a Gamestop they will try to sell you a used game instead of a new one every single time you bring a new case up to the counter. This price match thing isn't going to work that well for the reason pachter just stated and if you don't understand that then you don't understand business ownership. If I sold the product in my business for half of what I'm selling it for I'd definitely be headed towards bankruptcy. I think this price match has more to do with the used games system they were looking into and less to do with a nationwide price match system.
whatisdelicious's Destructoid Blog
Your take on Pachter's prediction is kind of dumb.
Vanilla Gorilla's Destructoid Blog
So I actually didn't read very far into the post, but I don't need to to make a point as to why he is useful.

You don't like him from a gamer point of view. He says stuff and you don't agree with it, and he may not even be right on a fair portion of what he says. But that's not why he is an important figure in the industry.

He is a "tool" for developers to use. His market analysis and "predictions" help give ground for developers to convince publishers to do stuff. What Michael Pachter thinks can help mitigate foreseen risk, and that may help a deemed "risky" project get some wind under its wings.

The whole "risk" part really sucks for a developer, because suits with money =! gamers or developers. All they want is to make sure they get more money back than they spend. But all developers (or the good ones, anyways) want is to make kick ass games for the gamers to play.

Publishers -- Developers -- Gamers. Michael Pachter's importance in the industry is in between Publishers and Developers. The fact he identifies at all to anything on the Gamers side is icing on the cake, whether or not you agree with what he says.
defiantDOOKIE's Destructoid Blog
I really don't think he cares about what you think. His job is to make predictions based on the current market. He doesn't make these predictions to make gamers happy, he makes them to make his investors happy. Regardless of what you think Sony/MS/Nintendo cares about the bottom line, money. If they make people happy in the process cool.

You use the argument that Best Buy can afford to lose some money because of everything else they sell. No they don't. It's a business. They are using this idea because they see it as a viable market plan. They would not be doing this unless they think they can make money. It's also intersting that people don't mention this about Sony. Sony is losing money in the gaming department so the entire company must be doing bad...ohh wait they are involved in pretty much every aspect of electronics...I forgot about that.


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