GameStop Used Game Sales Account For 42% Of Profits
GameStop is a company that just can't be stopped right now, and it's due in large part to the explosion of their used games business.
According to recent statistics gathered by Edge, used game revenue for the world's largest video game retailer hit $2 billion this fiscal year (which ends January 31). Now, that's nearly 1/4 - about 23% - of the company's total revenue, which is $400 million more than the previous year. Overall, the Wall Street Journal says that 42% of GameStop's profits come from used game sales, and as far as we're concerned, this isn't exactly surprising. As a side note, the Journal went on to talk about how publishers are trying to coerce consumers into buying extra content that can "only be used once." They say it's an example of "an effort to diminish the appeal of buying a used game," which does make some sense. However, as it stands right now, GameStop is raking in the big bucks by taking your used games in trade and selling 'em all over again...and for not much less than the initial price tag. Some may look down on this practice, but most gamers like the idea of trading in products they won't use anymore, if only to nab some extra cash for a new purchase.
Personally, the numbers don't surprise me in the least. And I hate to say this, but it's because GameStop gives less than they used to for trade-ins...but still sells them for the same amount. When I worked there during the late PS1 and early PS2 days, we'd give about half of what the game was worth in trade. So if a new game cost $50 and someone traded it in the next day, they'd get $25, or at least $20. Then we'd turn around and sell it for $45. Well, GameStop is now giving about 1/3 of what the game is worth, so a $50 or $60 might only get you $15 or $20, and they'll still sell it for only $5 less than the new retail price. So yeah...they're making a lot of money.
1/23/2009 Ben Dutka
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Comments (32 posts)
MeXiCaNFiGhTeR
Friday, January 23, 2009 @ 11:21:23 AM
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WorldEndsWithMe
Saturday, January 24, 2009 @ 2:54:40 PM
GuernicaReborn
Friday, January 23, 2009 @ 12:03:44 PM
whooka
Friday, January 23, 2009 @ 11:54:24 AM
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JPBooch
Friday, January 23, 2009 @ 12:16:52 PM
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Tim Speed24
Friday, January 23, 2009 @ 1:38:37 PM
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I don't mind picking up a used game once in awhile that I wouldn't have paid full price for. There are some bargains out there sometimes.
crapreviews
Friday, January 23, 2009 @ 1:43:22 PM
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Anyway the REAL point is this. First, all the people who choose to buy used games over brand new ones fail to realize that ANY used game purchased, no money from that purchase goes to the Developer of the game. Gamestop gets all the profit. You want Developers to put out new games but yet you not "really" supporting them when you buy used. [this excludes games that are no longer made]
Second, and this is an important one IMO. Developers need to realize that after a game has been out for so long you can NO longer expect most people to want to pay full price for a brand new copy. Why, oh WHY if a game has been out for over a year do you still sell it at full price. Example, Uncharted. I've been wanting to play this game, don't wanna buy it used cuz money won't go to the Devs, but don't wanna pay full price for a game that's been out way over a year. If a game has been out for over 6 months there needs to be some kind of price drop. If over a year, the price needs to go down even more.
Last edited by crapreviews on 1/23/2009 1:44:40 PM
JPBooch
Friday, January 23, 2009 @ 5:13:02 PM
Wage SLAVES
Friday, January 23, 2009 @ 7:18:46 PM
aaronisbla
Friday, January 23, 2009 @ 11:58:11 PM
crapreviews
Saturday, January 24, 2009 @ 8:19:52 AM
rjmacready
Friday, January 23, 2009 @ 5:36:42 PM
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IMO, Selling games on Amazon is key though as far as selling them. I've sold over 20 games on Amazon for a lot more than Gamestop would have paid for them.
The best part is I sell them cheaper than anyone else on Amazon, still make a decent profit, and they sell usually within ONE DAY.
It's great cuz if I think I'll never want to play a certain game again, I'll sell it on Amazon and get cash to buy some other game that I'm interested in.
Wage SLAVES
Friday, January 23, 2009 @ 6:05:18 PM
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DIsmael85
Friday, January 23, 2009 @ 6:44:30 PM
Wage SLAVES
Friday, January 23, 2009 @ 7:15:35 PM
If the same thing were going on in the movie industry we'd have $15 admissions tickets or something. Consider it enlightenment.
Last edited by Wage SLAVES on 1/23/2009 7:20:04 PM
bigrailer19
Friday, January 23, 2009 @ 8:15:07 PM
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Last edited by bigrailer19 on 1/23/2009 8:19:04 PM
DIsmael85
Friday, January 23, 2009 @ 10:50:04 PM
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Wage SLAVES
Saturday, January 24, 2009 @ 12:51:33 AM
And about that ingenious car argument, I say that an automobile is what you call a depreciating asset. Meaning you will never get the same experience that you would at the beginning. You will incur losses due to higher maintenance. But you will ALWAYS get the same experience from a game. A car also has a lifetime on it. Believe it or not.
Why is GameSTOP entitled to that extra cash that is nearly what a new game would have been. I swear used titles are like a measly $5 off. Just so GameSTOP can bank on the customer not choosing the new one.
A while back I bought Civ Rev new and the guy at gameSTOP tried to give me an open box. That is just shady business. Thats the last time I dealt with them. Ask yourself this..."Would I defend it if I had made the game..." Go ahead wheres your answer...
Last edited by Wage SLAVES on 1/24/2009 12:54:23 AM
DIsmael85
Saturday, January 24, 2009 @ 2:12:53 AM
Back to the Gamestop situation. When they sell the game at a used Price of $54.99 it's about profit. The company gains profit to be able to pay it's "Employees". So if getting paid for my job is a bad thing, then I'm sorry, you are lost. If people decide to trade in their games without proper cover art, that is not Gamestops fault, like I said they have no value, only the "Game" itself does. If the game is still new, and is a sought after game, like Gears of War 2, then why would Gamestop as a business sell it for any less than the used price tag? The game is still a hot item.
As for a car, I believe your statement is wrong. That is subjective and depending on the driver who is buying the used car the experience may be the same as the person who bought it new to begin with. That is an opinion and not a fact. Games are the same way. They can wear out over time, and since we are using a disc medium for our entertainment, they can wear out quickly.
Ask yourself in the end if you think you deserve to buy a brand new game, play it, beat it, and then sell it back and think you should get back every penny you spent on a game you have just used. Then ask yourself if you think it's fair for someone to buy your used game for the same amount you spent on it, just because you think they will be getting the same experience from it that you did. It doesn't work that way. Which is why you will see all over the internet and sites that sell used games, the prices are they way they are.
People Bashing Gamestop need to sit back and think for a bit, and get their heads out of the Clouds. This is a business, that is surviving due to the fact that is has that ability to Sell, Trade used and new games. This company is not affected by an economic crisis, and is still able to open more and more stores. It's a "BUSINESS" Just like any other business. If you have a bad experience due to an employee, that is not the businesses fault, that is the idiot behind the counters fault. We as people have the ability to make choices. What will yours be?
Last edited by DIsmael85 on 1/24/2009 2:14:23 AM
supremekai
Saturday, January 24, 2009 @ 12:31:42 PM
Wage SLAVES isn't talking about the money you get back when you sell your game used. Which you would get more selling it privately then to Gamestop.
I'm assuming you work at Gamestop thats why you're defending it. But anyways...
Well, look at it this way if a person was deciding between buying it used (let's say $55) and new ($60) from gamespot and decided to buy used. That money could be profits for the developers instead of $40 profits for Gamestop. What would money go to developers do? Yes, use to make games.
Now look at the bigger picture. If only a few hundred thousands of people buy a game new and sell them used and everyone else buys it used privately or not, the developers may not turn a profit. In the end it will only harm gamers, because the developers would not have [enough] money to make other games or make a game even better (time=money, more time spent on a game the better it might be, Killzone2 says 'hi').
Used games can also be "recycled". For example Gamestops sells a new game (they make their profit lets just say +$5 in this example) then the guy comes back and sells it to Gamestop (-$20) and then gamestop sells it(+$55) then from that person they sell it back to Gamestop (-$20) and gamestop sells it (+$55) ,etc.. so from 1 game Gamestop has a infinite amount of profit, pretty much... And the developers gets $0 from this... See the problem? If more people buy it new developers will get A LOT more money which in turn they can bring the price lower for consumers(gamers) and also use those money to make MORE games...
Last edited by supremekai on 1/24/2009 12:32:07 PM
Bill_Clinton_
Saturday, January 24, 2009 @ 11:17:11 AM
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WorldEndsWithMe
Saturday, January 24, 2009 @ 3:06:43 PM
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1.Chances are the tiny sum Gamestop will give you for your game isn't worth it unless you unfortunately bought a piece of crap because you might want to play that game again somewhere down the line.
2. If you are going to buy a used game and don't really trust them, ask to inspect the disc for imperfections.
That is all.
DIsmael85
Saturday, January 24, 2009 @ 9:48:02 PM
dirdiggler
Sunday, January 25, 2009 @ 10:04:53 AM
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BikerSaint
Sunday, January 25, 2009 @ 11:45:46 PM
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FYI, I alway buy them used, & only when they come down under the $10-$15 dollar range(but only if they have the case, art & mamnuals too, and are no worse than a few fine scratchs witch I'll buff out. I find alot of older-but PS1/PS2/Xbox goodies in their bargain bins from $1.99 to $7.99 too
I think in the last 10 years, I've only paid more than $14.99 twice for a game, $29.99 for a rare used Ace Combat Zero:The Belkan War, and $24.99 for Ace Combat 5: The Unsung War.
But the best deal I ever got was from an employye of another used games store going out of biz. The store had about 3 days left on their shopping center lease & I talked the kid working therre to sell over 300 PS1 games, and all their Gaming console signs, & posters for only $75.00. Damn if I didn't feel like I got away cleanly from robbing bank(and without any red dye packs staining my loot either).
opsdaddy
Monday, January 26, 2009 @ 7:25:25 AM
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Since then, I've modified my buy-cheap strategy: if it's a game that I'll be playing offline, I'll wait for a price drop; but if it's a game where online play is king (i.e., KZ2) then I purchase it early. Works for me...

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coverton341
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Friday, January 23, 2009 @ 11:21:10 AM