GameStop to Get Revenue Share from Digital Content on Xbox Consoles They Sell - News
by William D'Angelo , posted on 15 October 2020 / 1,438 Views
Retailer GameStop earlier this week announced it had formed a multi-year partnership with Microsoft. The retailer with this partnership will be using Microsoft’s cloud solutions and hardware products to help create the "ultimate gaming destination" for gamers at its over 5,000 retail stores worldwide and deliver new digital experiences for its customers.
More information on the partnership has now been released. Microsoft will be sharing downstream revenue from digital downloads and digital content with GameStop from any Xbox that the retailer sells, according to a report from DOMO Capital Management who spoke with GameStop.
The report mentions "any device that GameStop brings into the Xbox ecosystem," which likely means the upcoming Xbox Series X and Xbox Series S consoles, as well as the Xbox One. It is not known how much GameStop will be making from this partnership or if it includes Game Pass revenue.
The Xbox Series X and Xbox Series S will launch worldwide on November 10.
Today $GME confirmed with @DOMOCAPITAL that the agreement with $MSFT includes revenue sharing on all downstream revenue (i.e. digital downloads and digital content) from any device that GameStop brings into the @Xbox ecosystem. GameStop now meaningfully participates in digital.
— DOMO Capital Management, LLC (@DOMOCAPITAL) October 14, 2020
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.
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That is a very good way to ensure stores have interest in selling even digital only system. Let's see how this partnership with MS will affect shelf space compared to Switch and PS5.
Welcome to GameStop! Would you like to sign up for PowerUpRewards? Would you like a warranty on that game? Would you like to pre-order this overhyped game? Would you like to buy a Series S? Would you like an installation guaruntee? Would you like to sign up for Gamepass?
Would you like to get the season pass? Would you like to buy 1,000 Shrutebucks for MTX in your Shrute Farming Game? Might I suggest the "Digital Deluxe Edition" for $40 more?
Good for GameStop.
I've met some very good people working at Gamestop. But corporately, they are a cesspool. That's why they've been trending on the decline. That's also why it's easy for Microsoft to pick up.
I guess the trade here is for GameStop to better advertise Microsoft’s services and products, by taking a pie to their digital revenue
In this digital age, I think people know what they want to buy .
Certainly better then keeping Microsoft stores open. Dedicated game stores with built in Xbox bias, sign me up :) Maybe I’ll actually go back there next gen.
so we will have GS employees shilling for MS
As someone who worked in retail, it isn't especially uncommon for vendors to incentivize a store to cell their product. Stores are not designed to be neutral parties, they're designed to do what's best for their bottom line.
Microsoft obviously still sees value in a physical retail presence. Smart move on their part. Nothing stopping Sony or Nintendo from doing the same, which they probably should.
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