Economics/Geekonomics

Best Buy Layoffs and A Sign Of The Future?

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Best Buy Lays off 400+ people, closes stores.

I know, I’ve been of the opinion Best Buy is in trouble.  I’ve agreed with those various analysts on the issues.  So on the surface, the fact I’m not surprised by this is, well, not surprising.  I figured it was coming.  In fact, I figure more will come.

But what is interesting is how Best Buy seems to be putting more focus on Best Buy Mobile, smaller, “Kioskesque” stores.  A focus on smaller stores, more on mobile and related gadgets?  There’s a lot to that . . .

  • First of all, this seems like a viable strategy.  Focused, organized, standardized stores that are small and cheaper to run make sense.
  • Secondly, these stores could be easily resupplied from a central location (suggesting to me that, much like the Safeway delivery service, stores could serve as warehouses).  This could mean big stores being repurposes may be a logical focus (and may limit layoffs).
  • Third, these smaller stories could get more easily set up or torn down as needed.  Limited risk, faster adaption, and faster to take on rivals.  These stores could even be piloted easy.
  • Fourth, and this may seem out there, but in an age where you have vending machines with iPods and DSes in them, I could see experiments with a Best Buy vending system.  If we’ve got automated convenience stores, Redbox, and iPod dispensers, this isn’t too outrageous.  Oh, and it’s 24/7 . . .

– Steven Savage

Flight Control Rocket: Taking New Payments WAY to far?

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I have to say, it sounds like it.  It sounds like they’re monetizing the crap out of the game, and not in a good way, but in the “pay for anything, including a high score way.”

I’ve only just heard about this, but my first impressions are the game is a bit of an experiment/overindulgence in the free-to-play/more-you-pay strategy that’s way, way out of hand.  I’m not surprised – some people are going to take advantage of the model.  I’m concerned about how this plays in modern media.

Of course we know that even if this “isn’t it,” some egregious, bizarre variant of the Freemimum/Pay-to-play monetization model(s) is coming.  That variant will be so annoying, it will get a lot of publicity.  At that point, predictably, many will question the model.

The model in question is just that – a model.  How you use it is the real question, but I’m suspicious in the world of freemium and other different monetization models, mixing up the application and the model is a risk.  In a 25/8 news cycle, things move fast, including predictions of demise of something (ask Twitter), and the brave new world of  new monetization can be called into question in an instant, leaving us to sort out the reality from the bull.

So this story doesn’t surprise me.  But I’mm waiting for the inevitable “freemium/whatever-method is evil” news fest that I feel is likely.

– Steven Savage 

This May Explain a Few Things About New Jersey

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I have friends in NJ, and nearly moved there myself once.  Apparently I dodged a Snooki because it did really lousy economically the last year.

This is one of those reminders of why you follow local economic news – it can be very revealing.  Take it from a Silicon Valley guy where economic issues change if you drive a mile or two, and 3 major cities combine into a diverse megaregion.

– Steven Savage