or Why Have Retailers Fucked Over the GameCube?
I’ve wanted to write this article for a while now but only now got up the nerve to do it. I’m a frequent watcher of the videogame industry and an avid gamer. I own (and still own) systems like the ColecoVision right up to the GameCube. I’ve always had a soft spot for videogaming and fortunately it has seen resurgence in ‘cool’ so I don’t look so dorky being 26 years old and staring at the toob for hours at a time.
A Nagging Feeling
But something has been bugging me. After graduating from high school, I quit playing console videogames (at the time, NES, Super NES and Genesis) for a few years. I would still go to the arcade, in fact I frequented the arcade quite a bit when I started working as I was at the time working in a mall, but I didn’t keep up on consoles. So when I saw Sony jumping into the mix, I was surprised but when I saw their system, I wasn’t very impressed. Slow loading times and crappy polygonal graphics, I wasn’t impressed. Compared to the arcade games I’d been playing for the past few years it was hardly inspiring. After a few years of watching the PlayStation gain momentum I was perplexed. Why on earth is everyone so mesmerized by the shovelware that was being produced for this inferior system? A system that didn’t even have any interesting characters like Sonic or Mario.
Sega had recently announced their Dreamcast and as awesome as it looked, there just didn’t seem to be any games for the system that were all that worthy of a purchase. Sonic was a treat, but where were the other games? Sega had a killer system but it looked like “I coulda been a contenda” was written on the box, which sadly became its fate a few years later (and a few great titles later too). When Nintendo finally announced their N64, I had to see what their response was to the Sony threat. Well, It was quite a system, but it too had plenty of faults. However the N64 had a strong supply of games for it, perhaps not of the same numbers of the PS, but at least most of them were quality titles. When I was in college (I didn’t go to college per se, but I was *at* college) some of my friends were big N64 junkies, largely due to the excellent wrestling games that were offered on the system and the ability to play 4 players at a time (without a ‘multitap’). I won’t pretend to say that the N64 had better graphics (though I will argue it had better 3D graphics, but crappy looking textures), but it certainly had better games (at least games that interested my friends and I).
When a friend of mine went out of his way the day that the PS2 came onto market to buy one, I was already skeptical. That side of the fence had little that interested me. Sure there were games that I would have liked to have had, but the N64 had enough to keep me happy. When he got the PS2, we all laughed at him for spending over $300 for a system that had a handful of really crappy games. It didn’t live up to the promises that Sony had made. It looked like a sooped up PlayStation in a black box. This riceracer of gaming systems didn’t impress. Microsoft made their presence known in the gaming universe shortly after the PS2. With a focus on hardware, instead of software, it looked like it could also be poised for a fate similar to the powerful Dreamcast, but as most anyone who knows Microsoft should know, never count them out early in the fight. A few months later, Nintendo released the GameCube, hoping to gain marketshare stolen from them by Sony in the past few years. Knowing they needed a system that was powerful and capable and knowing they needed to convert to the optical disk format to compete, they released a worthy system.
Now, a few years later, we see the market and how it’s laid out. The PS2 owns the world market by a huge degree. It also holds an interesting advantage in that it can also run older PS games. Nintendo owns the second place title in the world market by a small margin, but is third in place in the US market, where Microsoft recently has taken a recognizable lead. The Dreamcast has dropped from the race entirely. How did the market shift directions? Nintendo used to own the market when the race was almost entirely Nintendo versus Sega (though there were a few other mildly successful systems like the TurboGrafx 16 and the NeoGeo, they were more successful in Asia than in the US). Why does Sony own the hearts and minds of our youth instead of Nintendo? How is it that the stereotypically “uncool” Microsoft becomes cool with the Xbox? I don’t have the answers, but I do have a few thoughts on all of this.
Conspiracy Theories
Have you taken a look in a videogame or computer store lately? How about the ads in the Sunday newspaper or on TV? I’ve noticed something interesting lately. Perhaps it has been there all along and I only recently saw it.
When you go into a videogame store, you are thrown into a wonderland of games. Most of these are for the ubiquitous PS2 system. What of the Xbox and GameCube? Ask a rep at the retailer what system is the best and I’ll guarantee the response will go something like this: “The PS2 is the best because it has the most games, but the Xbox is really good if you want the best graphics and adult games. Buy a GameCube if you have kids.” The retailer will almost go out of his way to pressure moms and dads (who typically don’t keep up on gaming news and technology) into buying the more expensive systems selling them on such things or simply “this one is the best”. If you aren’t a mom or dad, but a typical teenager who wants a new system they hammer on the gamer by feeding him FUD like “You want to buy this system because that other system doesn’t have any games for teenagers or adults”. Think I’m overstating this? Go into a videogame store and listen in on some conversations with kids, teens, adults and moms and dads. Most retailers are more interested in making the sale rather than qualifying the sale by asking questions about the gamer and the types of games he or she likes.
Instead, they make presumptions: Kids want the kiddy system, GameCube. Teens want lots of games or want adult games like their older brothers and sisters, so they should buy the PS2 or Xbox. Parents should buy whatever is the most expensive system, but easiest to sell, PS2. 20 or 30 something’s should buy the Xbox because it has adult games. Nevermind the fact that all of these systems have a huge variety of games that overlap age groups and genres. But the presumption is the easiest sale because “They practically sell themselves!”.
Another interesting thing you’ll notice when you are in many of the big gaming chains, is that the crew are all wearing Xbox necklace-nametags, for instance. Now tell me that you are going to get impartial help from that salesperson. Like most stores they are going to try to upsell the customer to that product (or whatever product is going to net them the highest dollar sale they can get out of that person, even more so if that store is commission-based). Think I’m kidding? Most retailers have certain products that they are asked to highlight and sell more of than the others for ‘spiffs’. I wouldn’t doubt for a moment that gaming retailers have certain systems they are told to highlight, though admittedly I have no proof to make that statement.
Isn’t it incredibly interesting that retailers place the GameCube in the back of their store, often in the corner next to the bargain bin stuff (from the GameCube’s launch I’ve noticed this in many major retailers)? The PS2 and Xbox are much more prominently placed towards the front sides of the store. While I can reason the PS2 being prominently placed from a shear items-sold perspective, the Xbox and the GameCube have very similar sales numbers, so why this discrepancy? Ever go into Blockbuster or Hollywood Video? Isn’t it interesting that their GameCube lineup is greatly lacking, often half the size of the Xbox rental selection? Why?
Isn’t it also very interesting that in the ads in Sunday newspapers that many of the big electronics stores (Circuit City, Best Buy, CompUSA, etc.) will often highlight a certain system over another? In fact, they will often leave the GameCube out of their ads altogether. I noticed when Zelda came out, a few of the stores would simply show Zelda for sale, but not feature a shot of the system at all. I’m not saying there’s a conspiracy here, but jeeze… It seems awfully fishy.
Fear, Uncertainty, Doubt
Sony and Microsoft have spread so much FUD about Nintendo in the past few years that everyone is willing to believe any rant that comes out of their collective mouths. I won’t be so naive to say that Nintendo hasn’t done any wrong in their past, but come on… Most notably lately is all of the press that has been going on saying that GameCube is going down the tube to a fate similar to that of the Dreamcast. Quite a lofty thing to say when Nintendo (at least at the time of the launch) is the only company to be making a profit on each system sold. This is the same kind of FUD that’s been said about Apple for the past 20 years (sorry to use a tired example, but is it not true?).
The more it is said, the more likely it may happen, I suppose because we are talking about a difference between marketshare and mindshare. Xbox and GameCube share very similar marketshare, but Xbox seems to have won out highly on mindshare. How? The same way that Windows has won out on Linux mindshare (though I’d imagine the numbers are a lot closer marketshare wise if you were to consider *every* system and device that runs Linux compared to Windows). I’m not sure how Nintendo can win the mindshare race. Nintendo started out in the market when gamers were typically children but now many of those children are starting to have kids of their own, and their interests are different. So some folks have decided that the only way Nintendo can regain marketshare is if they start making gorefest games that will sell to the mature audiences. Nintendo does something that few other game companies can do. They make games that everyone can enjoy. Perhaps they haven’t gotten with the times and addressed niche audiences, making ultraviolent games. However, they have a fairly consistent quality that most other game companies can’t match, other than Sega perhaps.
I’ve seen a fair amount of retailers complaining online that they aren’t making money on the GameCube, and some saying they are losing money on it. If you aren’t making money off the GameCube, then you aren’t doing your job to sell GameCube. Just as some stores may be featuring certain items, they should also work on selling other items in their store as well. Instead of sitting behind your counter and ignoring your customers (Babbages, GameStop, software etc., etc. Etc. Etc.) try suggestion selling. Try figuring out what it is that the customer wants and trying to find out what would best suit their needs. PS2 isn’t for everyone, Xbox isn’t for everyone and of course, GameCube isn’t for everyone. If you are that concerned about inventory in your store then you need to work on your sales technique. Talk to the customer; ask them what kind of games they like. Don’t sell them a PS2 because it’s easy. Sell them the system that best matches their wants and needs.
And I’ll say this (from being heavily entrenched in retail) if you simply sit back and assume that the products will sell themselves, then you don’t belong in retail, you should be selling hotdogs on a hotdog stand because that doesn’t require any communication or qualifying with the customer other than asking whether or not they want mustard.
Unanswered Questions
As I said, I have no real answers to the questions I have posed, but I needed to ask them anyway because it’s been bugging me. I read the gaming magazines, both print and online, and there is total distortion on all sides. Everyone is trying to promote his or her favorite system over the other. While I’m a big fan of the GameCube, I also believe in journalistic integrity, which most of these journalists don’t seem to adhere to. I also think a lot of it comes down to the “cool” factor. Most gaming companies appeal to youth just like most other companies do, by making their product seem cooler than everyone else’s. Right now Sony is the Nike in the industry. Kids see their older brothers (sadly, female gamers are still largely ignored in the industry) playing ultraviolent games like Grand Theft Auto or Splinter Cell and they want to play those games too. It is purely human nature. All younger siblings want the things their elder siblings have. The advertising industry knows this, and that’s how they sell products. That’s also how the tobacco industry continues to exist, but that’s another article altogether.
Final Notes
To be fair, I will say that Nintendo does need to get on the ball with producing more “Big” games and they need to do more advertising of those titles. They need to lose their “kiddie” appearance and fast. Perhaps that is a failure to see what is going on in the US market due to culture differences, I don’t know. So, yeah, Nintendo is partly to blame for not being as aggressive as they should be.
I expect that this article will get a fair amount of rabid readers frothing at the mouth that I’m painting something in a poor light or that my facts aren’t straight. I hope most readers of this article will understand my intentions; to question if there aren’t some fishy things going on in the industry pushing momentum in ways that may not have naturally happened. The gaming industry today is larger than the record industry and there’s a lot of money to be had. If one company is practicing uncouth business tactics, I’d like to know about it. Then again, I could be reading more into this than there is…
-Hollywood