sales

Thursday's launch of a games trade-in program by Amazon.com has already begun to make waves in the games resale business. Shortly after the program was announced, competitor GameStop's stock took a dive, dropping nearly 14 percent by end of day Thursday.

As a follow-up to the announcement, GameStop's CEO Don Matteo went on the record telling Edge Online he had no faith in Amazon's model based on his company's earlier attempt at a similar program. Matteo was, of course referring to sister site TradeStop. Back in 2005 the site featured a similar offering, where users could get cash for games which the company would then turn around and re-sell on GameStop.com. The service also let people send in DVD movies and music CDs. GameStop discontinued the program at the end of 2005.

Strengths Amazon is bringing something to the table that brick-and-mortar game resellers cannot easily match: Gamers who send in their used titles can spend their Amazon credit on things that aren't video games. For people who are selling games for a system they no longer have or use this is a clean break. It's also a chance for Amazon to make some extra cash when a user buys something that costs more than the credit they earned.

Another thing users may flock to is transparency. Amazon is showing users exactly what it will pay and has made this list able to be searched. Both GameStop and Game Crazy, two of the largest game resellers, offer no such feature on either of their sites. Instead you're limited to a list of hot games or promotional trade-in values, or you have to go into the store to find out the game values. Both companies will mail larger trade-in value lists, but the lack of an online system has led to users creating wikis to chronicle the ever-updating prices that can fluctuate by supply, demand, and retail price drops.

There's no special membership program. Both GameStop and Game Crazy have special memberships that its customers can join to get special discounts or receive a higher trade-in value for their games. Amazon doesn't offer this, which some may find appealing. Amazon pays everyone the same price in return for them logging-in with their Amazon.com account credentials. There's no annual fee, and the cost of shipping your games in is free.

There are no up-sells or pushy salespeople. You never have to talk to a human being in the entire exchange, which can be seen as a step up. Games retailers typically push paid membership programs, game pre-orders, and certain titles based on sales deals or events. For someone trying to offload their games and buy something new Amazon is letting you skip this.… Read more

Correction, 11:06 a.m. PST: This story initially misstated the day the report was released. It was Friday.

Update at 10:31 a.m. PST, with more information from the analyst report and a chart.

A J.P. Morgan analyst cut his financial estimates for Apple's fiscal second quarter and fiscal 2009 on Friday, pointing to expectations that its iPhone and Mac sales may be weaker than previously anticipated.

Apple fell as low as 7.3 percent in early morning trading Friday to $82.33 a share.

"We are lowering our estimates for the March quarter and … Read more

As badly as the second half of 2008 treated the PC industry, 2009 is shaping up to be worse, according to a couple of new analyst reports. CNET News reporter Erica Ogg explains.

Plus, what can you expect from cameras and camera gear over the next six months? CNET News reporter Stephen Shankland is just back from the Photo Marketing Association trade show in Las Vegas and he tells CNET News intern Erik Palm what he saw.

Today's stories:

Cook County: Craigslist is top source of prostitution

Amazon launches trade-in program for used games… Read more

The Kindle 2 could generate revenue of $305 million and gross profit of up to $70 million for Amazon this year, according to estimates made by investment bank Collins Stewart.

The estimates are just the latest heady Wall Street predictions for the Kindle 2, Amazon's digital book reader. Last month, a Citigroup analyst published a report that predicted the Kindle 2 would generate $1.2 billion in revenue by 2010.

Amazon hasn't broken out financial numbers for the Kindle 2, which made its debut last month.

Collins Stewart estimates that the device will see sales of $1.6 … Read more

I just noticed a New York Times blog post about the sales trends of DVD and Blu-ray discs. While numbers for DVD and Blu-ray weren't broken out, overall sales for discs were down big in the fourth quarter of 2008.

Here's the key quote from the article:

In last year's fourth quarter, usually a big one for DVD sales...the studios' revenue from sell-through of conventional DVDs and Blu-ray discs fell 23.4 percent, to $2.6 billion from $3.4 billion. This drop of $800 million, Adams Research figures, shaved fully $500 million from the studios' … Read more

I woke up this morning to a special deal from Amazon.com on a TomTom GPS device. While its one-day, 33 percent discount almost certainly has nothing to do with Microsoft's announcement that it is suing TomTom for eight counts of patent infringement, the appearance of Amazon trying to clear its inventory of the TomTom One-S couldn't have better comic timing:

I don't want to prey upon TomTom's misfortunes, however. I'm going to be waiting for the "75 percent off" sale next week. :-)

Follow me on Twitter at mjasay.

Somehow, CIO.com's Shane O'Neill divines that Apple's customers are dumping it in droves now that the global recession has kicked in. His evidence? A 6-percent retail sales drop in January compared to January 2008, according to NPD Group:

Apple, welcome to Earth in 2009, where premium pricing doesn't cut it anymore...We live in a time where cheap is trumping cool, and probably will until this economy turns around. That's bad news for Apple, which has no Netbook (that we know of).

This is a bold statement to make on one month's worth … Read more

One of the great things about Silicon Valley can be that freewheeling engineering culture. And one of the worst things about Silicon Valley? Yeah, it can also be that same freewheeling engineering culture.

When companies are flush, it's all grand. Beer bashes, special outings to the beach, and hugs all around between corporate divisions. But culture clash is unavoidable in companies with strong engineering traditions. And when times turn tough, the constant, low-grade tension that defines the sometimes awkward relationship between sales and engineering boils over and inevitably leads to finger pointing. We saw it happen at Apple. We … Read more

Jobs, taxes, and travel captured the interest of U.S. Internet surfers in January, marking double-digit to triple-digit gains over the previous month, according to a ComScore report released Thursday.

The number of unique visitors heading to tax sites climbed 176 percent to 24,703 in January, as users geared up for the upcoming tax season, according to ComScore.

Travel sites, meanwhile, posted a 46 percent increase to 13,028 visitors last month, as users took advantage of falling fuel prices and a desire to plan ahead for their vacations, while job search sites climbed 42 percent to 26,702 … Read more