GameStop: Used Game Business Is "Difficult To Manage"
When a company executive stands up and tries to convince people that he doesn't like to make money...well, it's amusing in a way.
GameStop and the used game business has come under fire recently, with publishers being upset that they don't receive a dime for any used game sale, and gamers tossing in their own brand of disapproval. But when GameStop exec Niall Lawlor addressed this subject during the Develop Conference 2010, he said something that many journalists and industry fans find difficult to swallow. According to Examiner.com, when InstantAction CEO Louis Castle compared the sale of used games to blatant thievery, Lawlor defended his company by saying, "We like to think GameStop evangelizes the business." But then came "the" comment:
"We don't like being in the used business, it's very difficult to manage."
Now, wait...back up a second. You don't like it? Who cares how "difficult" it is to manage when the company drags in a few billion every year based on the sale of used games, which enjoy nutty 100% markups...? Standard markup in that store is maybe 50% (although I remember working there, and it's far less for hardware and other items), and the trade-ins these days point to more than 100%. I traded in Naughty Bear last week and got $16 for the trade; its used price tag is $40. The gap has been widening over the years; I've been watching it.
So to say you don't "like" this may be construed by many as a lie. We're not calling him a liar; we're simply warning him that others might call him that.
7/13/2010 10:51:44 AM Ben Dutka