Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Electronics Boutique (ELBO) -- Ignore unavailable to you. Want to Upgrade?

To: joel3 who wrote (489)	8/20/1999 12:02:00 AM
From: Night Writer	Read Replies (1) \| Respond to of 779

joel3, I just visited the web site. Sega is doing a Dell and going direct. Sega promises delivery to your door step on 9/9/99 for consoles ordered on their site. I didn't dig any deeper after seeing that, but I bet you can order the games direct. This might not be too good for ELBO. If the game accesses the internet site and enables game try outs along with purchases....... You gotta hand it to Sega. Revolution not evolution. NW

To: joel3 who wrote (489)	8/21/1999 11:56:00 AM
From: ratherbelong	Read Replies (1) \| Respond to of 779

Joel3, The pie here is incredibly large. Millions of Dreamcast consoles, controllers, games and accessories will be sold over the next 12/18 months. ELBO will get more than a fair share of this pie because they have spent the last 20+ years building customer loyalty through a business model that caters to the needs of the "hard core" avid gamer. Gamers want more then hardware and software. They want the experience of dealing with knowledgeable sales associates (in stores or on line) that share their interest, who "talk the talk" and understand there needs. They love ELBO's price matching policy and their return policy that enables gamers to get a credit/refund on "undesirable" merchandise if returned undamaged. They have come to trust the company's reputation for "delivering the goods" in a timely and cost competitive manner. Why would someone buy from a Sega website and have no "connection" to the seller when they can buy from a retailer (in store or on line) and have an ongoing relationship with that retailer. Afterall, right now the hot item is Sega's Dreamcast but 12 months from now it will be sony's new system and 6 or 8 months after that we get to see nintendo's new machine. This cycle will repeat itself again and again, with market share fluctuating from one manufacturer to another, depending on the quality of their product and the timing and focus of their marketing, because gamers will always want the newest and the best and will jump from a sony system to a sega system to a nintendo system if the advances warrant the change and the price point is not prohibitive. My point being, that the loyalty here isn't with the manufacturer of the product as much as it is with the retailer. If every associate at every Electronics Boutique store advised every one of their customers not to buy the dreamcast for whatever reason...I am sure that would have a much greater impact on Sega, then Sega going online with a direct sale website will have on ELBO. Anyway, I have become much to long winded in trying to say that I see this as a non-issue. This is my take. I invite comments or discussion. Good luck with all your investments. RBL