[CanadianGames133]

I'm a high school graduate, and I'm ready to start up my own business. Would it be wise to get into the Video Game Industry? (In terms of selling, not creating)

I know that I'd be swamped by the kings of the industry, such as EB Games, but I've found a location that would treat the surrounding areas well, far from any other game stores.

The thing I'm worried about is the general cost of the whole enterprise. I've applied for a 10 000 $ CAN student grant, which (hopefully be accepted) and I've got another 20 000 - 25 000 $ CAN coming along. Will my costs be reasonable? Does anyone know of any of the popular suppliers, such as a company who supplies EB Games?

Any advice on the topic is much appreciated, thanks.

[jpaynecr]

What exactly are you trying to make money with this? Are you wanting to become a distributor? The video game industry is big. I have read that it is bigger than the movie industry.

[pbradish]

I think that he is looking into setting up a local storefront?

That being said, I know here in the US setting up a franchise like EB Games or Gamestop can cost over a quarter million dollars. If you plan on setting up shop here on the net beware it is a very saturated market with small profit margins.

[JPO]

Whereabouts in Canada are you?

[SlideRiceFC]

I've seen too many small mom and pop or franchised game stores come and go where I live to believe this is a good move. I guess it totally depends on your location but the bottom line is will you be able to compete with the giants??? ...not just game stores but department stores and places like Walmart are going to be your competition. Even if you start with a great game store any shift in the industry could be harmful. For example...the PS3 hits the shelves and you spread yourself thin stocking the shelves with games, accessories, etc. Sales are pretty good, then the next gen console hits the market and you really don't have the cash freed up to stock the shelves again for the new system. Suddenly your other inventory is old and you have no money to update your inventory. This isn't a question that is going to be in the mind of the big stores. If it's new they will have it. I guess you just have to see all angles. I live in one of the busiest cities in Texas and I see even used game stores struggling.

[CanadianGames133]

Thanks for the information guys, it's been very helpful.
To answer a few questions, I live in Toronto. I know the big city won't help any less to get a company established, but the location I'm in doesn't have another video game store, or even a department store (wal-mart, zellers) for at least 10 miles. It's very close to other trendy shops and schools, to whom the children I'd be appealing to.

To answer your comments SlideRiceFC, I do know of the dangers of competing in the video game sales market, but I keep very close tabs on the video game industry, and any change in the market, eg new consoles, games, I'll immedietly update stock, and drop the prices on older games. However thanks for keeping me aware of the danger of this turbulent market.

Another quick question for you guys, would the inclusion of a trading card section to the store be a wise option? Possibly hold tournaments for cash and prizes to draw in customers? Turn it into a store not only for video games, but for anything geek-related?

Thanks for the comments everyone, you've all been a great help.

[Franakapan]

TBH honest there may be a reason why there are no other stores in that area. It would be a wise move to check the area for problems such as poor public transport, high property costs etc.

Why will people bother coming to that area when they can travel a few extra miles to go to an area where they can do all their shoping as well as buy computer games?

[CanadianGames133]

I do understand your worries, Franakapan, but this is a great area. Lots of kids, great neighborhood (friendly, no crime) 2 minutes walking distance to the local transit, and it's a very accessible, well traveled road. Still think it's worth the risk?