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.
Tags: gamestop, used games, business
7/13/2010 10:51:44 AM Ben Dutka
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Comments (87 posts)
dirdiggler
Tuesday, July 13, 2010 @ 11:24:49 AM
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Highlander
Tuesday, July 13, 2010 @ 11:26:35 AM
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So, in that respect, it seems like Niall Lawler just did a Ratner.
Oh, and for the record, anyone who claims that their company doesn't like being in a business with mark-ups in excess of 100%, revenues in the billions and which props up their business is a big, fat, liar.
Last edited by Highlander on 7/13/2010 11:28:56 AM
fluffer nutter
Tuesday, July 13, 2010 @ 12:05:50 PM
Qubex
Wednesday, July 14, 2010 @ 12:11:54 AM
WolfCrimson
Tuesday, July 13, 2010 @ 11:32:39 AM
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I_defenestrate
Tuesday, July 13, 2010 @ 12:08:07 PM
It's a forum where people bring info on deals from stores and internet websites. They also do trading/selling between members. Members have a rating system too that kind of keeps them in check so you can have an idea if they are trustworthy or not. It's an excellent site for getting deals on games.
Gone
Tuesday, July 13, 2010 @ 12:35:31 PM
WantSomeKoolaid
Friday, July 16, 2010 @ 8:37:52 PM
I wish something to that magnitude would happen. Unfortunately we are plagued with to many problems. If such a thing existed there would be no way we would purchase the games for what Gamestop purchases them for. Whoever would use the site would more than likely want a feasible amount for the game (say 40 or so for a 60 dollar game). In that case just go to ebay or amazon. Gamestop gets them at such ridiculously low amounts because the individual getting rid of the game doesn't want to bother with anything else. Either they are looking for a real quick way to get a new game when low on cash, or they extremely hate the game and want it gone asap, or they don't want to bother with ebay or amazon. So for time being, we unfortunately have to deal with gamestop.
maxpontiac
Tuesday, July 13, 2010 @ 11:41:13 AM
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maxpontiac
Tuesday, July 13, 2010 @ 1:49:55 PM
kraygen
Wednesday, July 14, 2010 @ 3:02:06 PM
Jawknee
Tuesday, July 13, 2010 @ 11:45:22 AM
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On the otherhand I dislike how gamestop functions. They are way over priced. Wish they had more competition.
Last edited by Jawknee on 7/13/2010 11:49:11 AM
Highlander
Tuesday, July 13, 2010 @ 11:56:25 AM
A game on the other hand, even if the disc is scratched, is still as good as new. Remember you are not buying the game when you purchase a game disc, you are buying a single license to use the game stored on the disc. You do own the physical disc, box and paper manual. But the price you pay is essentially a license fee. When a person sells a used car or other used product, it will not last as long as the 'new product' and is perceived as a second class item compared to a new item.
When you buy a game used, you are paying gamestop, not the publisher, for the license you are about to use. But gamestop is not the licensor, they are simply another licensee, just like you and me. Used game sales absolutely do prevent publishers receiving the revenue that their game has generated.
Jawknee
Tuesday, July 13, 2010 @ 12:13:13 PM
Now i can underestand the argument of having to support people online who didn't buy the game new that's why im not completely against them charging a fee to access the games online features. But if i buy the game, the disc and what ever is on that disc belongs to me until i decide what to do with it. Should publishers be allowed to stop me from giving a game i bought away to a friend? No, so why should they be allowed to stop me from selling or buying them used?
The same argument can be made for used record sales. Should used CD and record store not be allowed to resell music people sell to them? i don't think so. Once the publisher gets their money for that copy of the game then it no longer belongs to them. If i pay $60 bucks for a game, the publisher doesn't get to control what i do with that game as long as im not copying anything illegally.
Last edited by Jawknee on 7/13/2010 12:17:08 PM
fluffer nutter
Tuesday, July 13, 2010 @ 12:27:43 PM
Doosharm
Tuesday, July 13, 2010 @ 12:28:13 PM
I feel that the only times publishes are hurt by used game sales is when a game has only recently released. In that case the overall sales figures are distorted since there is no extra income from all the people buying used. But I would question how much they are even effected by it since most newer used games are still only $5 below the new price. And I for one will always buy a new copy of a new game because getting to open it myself and look at a flawless manual and disc is worth the extra $5.
If they still want to push sales so bad then they should just bring down the price of new games after a few weeks.
Underdog15
Tuesday, July 13, 2010 @ 12:29:57 PM
Jawknee
Tuesday, July 13, 2010 @ 12:33:15 PM
Again the publisher got their money.
@underdog, you often times do. A lot of those used games have wear and tear just like a house or car would. Expect in the case of a car or house, the previous owners or the dealership clean it up. Not so at Gamestop. They often sell scratched and dirty games.
Last edited by Jawknee on 7/13/2010 12:35:31 PM
fluffer nutter
Tuesday, July 13, 2010 @ 12:40:19 PM
donfelipe
Tuesday, July 13, 2010 @ 12:41:48 PM
The point is that just because the depreciation in a game's value is not caused wear and tear does not mean its not depreciating all the same, a little bit more each day the further past the release date you get.
When we buy a game, we are buying a disc of data, nothing more. Once we own that disc, it is ours do with as we wish, as long as we do not infringe on the copyright holders rights. You can use it as a coaster or a frisbee and you can sell it too. Because selling said disc, your lawfully owned personal property (assuming you obtained it legally to begin with) does not infringe on the rights of the copyright holder.
The music industry tried fighting this battle and lost. As long as games are available in a physical format there will be a used market, that's just a fact of life. Publishers would be better off quit bitching, accept that truth and find a way to work with the used market rather than trying to fight it.
Jawknee
Tuesday, July 13, 2010 @ 1:06:44 PM
I'm just a talking about physical shape of the game, house or car is in. Often times the cars and houses look better then they did when they were trade. Not so with games especially ones at GameStop. I bought Uncharted Drakes Fortune used and the disc was trashed. I took it back and ordered a new copy of Amazon.
tes37
Tuesday, July 13, 2010 @ 6:55:32 PM
Games are software and the only difference with games is the absence of serial numbers to activate use. You can't legally sell used copies of Photoshop in a retail store.
The publishers and developers are the only ones that can do something to change the situation. Nobody is going to do it for them.
Bjorn77
Wednesday, July 14, 2010 @ 3:51:59 AM
You bought the license, so imo you are pleased to do with that license as you see fit. If I want to sell my license then I sell my license, I don't see how a game company would have something to do with that. After all, it is MY license, I bought it.
If you buy a game, it nowhere states that you are renting a license.
Underdog15
Wednesday, July 14, 2010 @ 9:29:33 AM
That's not how a license works... by definition, it can't work that way. Try selling your driver's license, or your business's liquor license.
A license is something that is non-transferable and is attached to a single individual or entity.
@TES37
The licensing of games works differently than something like photoshop. Here's the dilema...
There is no law available for game dev's to truly benefit from the licensing of games the way you described. If they did an all out serial number registration, there would be no video game rental business. PC games use registration because there really isn't a PC rental business to profit from. At this point in time, devs cannot both provide serial numbers to prevent re-sales AND allow their games to be rented, etc.
To be sure, devs would love to have both, but that relationship does not exist. So, while they do believe in the purchase of a license, and that's exactly what it is, because they have not done what is required to protect their data with serial numbers, they have no case in a court of law. They could say, "Gamestop keeps reselling our games!" Then Gamestop's lawyer would say, "Why didn't you protect it from redistribution?" Dev's response can be nothing other than, "uh....."
Case closed.
The reality is, until devs get more creative, like EA is trying to do, all devs can do is pray for some sense of morality. Since that's a value that's more or less dead these days, we have multi-billion dollar businesses.
Other immoral multi-billion dollar and LEGAL industries? Cigarettes... Porn... Microsoft.... the list goes on!
Last edited by Underdog15 on 7/14/2010 9:41:50 AM
Highlander
Wednesday, July 14, 2010 @ 9:56:18 AM
Think of all the licenses you have ever had in your life. Drivers license, fishing license (TV license - if in the UK), etc...
None of these licenses are transferable. They are all specific to YOU as an individual. If you try to sell your license to another individual, it's illegal to do so.
As Underdog points out, if there were measures in place to protect games, then used game sales would easily be challenged in the courts and the practice would end. The impact of used game sales should not be underestimated, and yet so many people dismiss it out of hand like it's a non factor. It isn't, especially on a platform like the PS3 which has yet to be cracked.
EA and others have recently started using online access fees for used/second hand buyers as a way of recouping some of the lost sales revenue. I think that is a sign of things to come. If the next generation of consoles comes with an implicit assumption of connectivity, then I think you can look for all games to be sold with a one time activation key which will - at a stroke - end used game sales. GameStop and others have themselves to blame, they have bit the hand that feeds them, and they will ultimately get slapped down, hard.
Oh, and by the way, when all games come with a one time use activation code, it will end all used sales, not just those at GameStop and the like. And when that happens, we can all thank GameStop for screwing it up for all of us.
Last edited by Highlander on 7/14/2010 9:58:18 AM
Jawknee
Wednesday, July 14, 2010 @ 11:26:08 AM
Underdog15
Wednesday, July 14, 2010 @ 12:07:38 PM
King_Krollen
Tuesday, July 13, 2010 @ 12:01:57 PM
Reply
Jawknee
Tuesday, July 13, 2010 @ 12:22:17 PM
fluffer nutter
Tuesday, July 13, 2010 @ 12:41:57 PM
Jawknee
Tuesday, July 13, 2010 @ 1:07:35 PM
Underdog15
Tuesday, July 13, 2010 @ 1:22:22 PM
Deleted User
Tuesday, July 13, 2010 @ 12:27:17 PM
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Jawknee
Tuesday, July 13, 2010 @ 12:29:40 PM
Amazon always has better prices on new games. You can get new games from Amazon for less then what you pay for a used one at Gamestop.
Last edited by Jawknee on 7/13/2010 12:30:58 PM
fluffer nutter
Tuesday, July 13, 2010 @ 12:29:41 PM
Jawknee
Tuesday, July 13, 2010 @ 12:33:52 PM
Alienange
Tuesday, July 13, 2010 @ 9:26:08 PM
Bjorn77
Wednesday, July 14, 2010 @ 4:23:55 AM
Gone
Tuesday, July 13, 2010 @ 12:29:04 PM
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I admit, I took advantage of the $200 PS3 trade in deal this week. I am saving up for a PS3 GT5 bundle or a Move Bundle.
Gamestop does have some good deals once in a blue moon. I got Red Dead Redemption for $19.20 after tax and shipping during there power hour last week (that is the exact price robodaddy-o).
fluffer nutter
Tuesday, July 13, 2010 @ 12:31:32 PM
Gone
Tuesday, July 13, 2010 @ 12:41:14 PM
fluffer nutter
Tuesday, July 13, 2010 @ 12:43:13 PM
Gone
Tuesday, July 13, 2010 @ 12:45:47 PM
Ben Dutka PSXE [Administrator]
Tuesday, July 13, 2010 @ 12:49:05 PM
WolfCrimson
Tuesday, July 13, 2010 @ 12:50:26 PM
Gone
Tuesday, July 13, 2010 @ 12:52:45 PM
fluffer nutter
Tuesday, July 13, 2010 @ 12:55:14 PM
Gone
Tuesday, July 13, 2010 @ 1:18:45 PM
Underdog15
Tuesday, July 13, 2010 @ 1:25:20 PM
Gone
Tuesday, July 13, 2010 @ 1:28:10 PM
Underdog15
Tuesday, July 13, 2010 @ 2:17:31 PM
fluffer nutter
Tuesday, July 13, 2010 @ 2:43:25 PM
Gone
Tuesday, July 13, 2010 @ 3:21:21 PM
Underdog15
Tuesday, July 13, 2010 @ 3:31:23 PM
The EB at one of the malls in my city had a pretty good looking girl working there, but truth be told, I don't frequent the EB games beyond the one nearby. Mostly I just checked out the store because my wife was visiting the Suzy Sheer or whatever it is across the hall. I ended up buying a new copy of 3D Dot Game Heroes.
Edit: Also, the manager lady knows shes a manager. She's always so angry....
And Texas, eh? Shouldn't you guys have tonnes of big and angry women? The dude on Supersize Me said it was one of the chubbiest places in the world. I've never been, though.
Last edited by Underdog15 on 7/13/2010 3:35:13 PM
Gone
Tuesday, July 13, 2010 @ 5:39:16 PM
Yes, Texas has tons of big angry women, but they work at Denny's and Walmart. If big angry women worked at Gamestop, none of the kids would go there (need some eye candy for the kids).
My grandma lives in Ontario, Canada. My parents and I have driven from Texas to Canada, it's a nice drive, it takes about 3 days to get there.
Underdog15
Wednesday, July 14, 2010 @ 9:31:48 AM
Highlander
Wednesday, July 14, 2010 @ 9:59:37 AM
Deleted User
Tuesday, July 13, 2010 @ 1:26:19 PM
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Luiscosmo2
Tuesday, July 13, 2010 @ 1:43:35 PM
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Highlander
Tuesday, July 13, 2010 @ 4:35:36 PM
Lawless SXE
Tuesday, July 13, 2010 @ 1:46:29 PM
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Like me going to GAME and JB Hi-Fi to trade in my copy of RE5. GAME offered me 25 while they were selling it used for 110. Yes that is the same price as brand new when it was four months old... insanity. I told them to stuff themselves, took it to JB where they gave me thirty five while selling it for sixty. Still one hell of a mark-up, but I feel I got the better deal.
People are strange.
Peace.
Deleted User
Tuesday, July 13, 2010 @ 5:43:52 PM
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I can see why Gamestop is despised by many with comments like this one. Give me a break. They give out next to nothing on trade-ins and then mark-up the game to just $5 below what a new copy would cost.
bigrailer19
Tuesday, July 13, 2010 @ 7:49:22 PM
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Not to mention they make a fortune of the used games! They right now are taking GOW 3 in for trade in and will give you $20 in store credit, but are selling it used for $55 lol, I mean c'mon! Whats not to like if people are buying?
Last edited by bigrailer19 on 7/13/2010 7:49:36 PM
DeathOfChaos
Wednesday, July 14, 2010 @ 11:07:02 AM
DeathOfChaos
Tuesday, July 13, 2010 @ 9:12:50 PM
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Highlander
Wednesday, July 14, 2010 @ 10:05:08 AM
DeathOfChaos
Wednesday, July 14, 2010 @ 10:59:23 AM
Robochic
Wednesday, July 14, 2010 @ 2:02:10 AM
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I stopped buying from Gamestop a while ago I only buy from them if they have good deals or if I want a collectors edition of something but really I shop around.
___________
Wednesday, July 14, 2010 @ 4:13:57 AM
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the only reason i hate EB is because they give you scraps than charge so much for it!
for example crackdown 2, i was so fu*king pissed off with this but my 360 put a massive gash in my crackdown 2 disk.
i rang customer support, after a hour and a half or arguing, than swearing me head off at the guy i took it back to EB traded it in for 40 bucks.
guess how much there selling it for?
90!
could you get more of a mark up?
i recently traded my PSP in to get my wii, they gave me 70 bucks for it, and am charging 300 for it!
EB should thank their lucky stars the employees at game are complete f*ckwits! and JBHIFI does not normally get games in till a week or so after release, otherwise they would of been bankrupt years ago!!!!!!!!!
RebelJD
Wednesday, July 14, 2010 @ 4:31:28 AM
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For anyone who's too lazy to be their own vendor, cross out the alternative that I'm about to offer. Ebay or Amazon. You bought a brand new game and hate it? Sell it on eBay or Amazon and get nearly 80-90% back on your investment. Bought a great game and no longer play it? Looking for some extra cash? Sell it on eBay or Amazon and get a good return on your investment because good games tend to hold onto their value longer.
Want to buy a used game you've been dying to play? Trust me, eBay or Amazon will have it at a better price than Gamestop does AND in better quality, trust me.
If getting screwed over suits you well, stick with Gamestop for used games (purchased and traded in). If you're looking to get back your dignity and stop being a whore to chain stores, evolve to what makes sense.
DeathOfChaos
Wednesday, July 14, 2010 @ 11:03:26 AM
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BikerSaint
Wednesday, July 14, 2010 @ 3:24:10 PM
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I will wait them all out till the games I want are under $20 used(or up to $30 on their buy 2-get 1 free deal days).
And with all the tons of games I already own that haven't even been played yet(and since I'm not an on-line multi-player either), then I have the added luxury of having all the time in the world to waiting out any new or current games. And yes, that means even if it's a year or more later.
And for the strategy, MMO's, & RPG titled games I'll never play but still need for my collections, I'll just wait them out till they're in the $10 or less pricepoint.
And for sports titles I don't want, but still need, I just pick them up them when they're down to $.99 to 2.99 only.
Heck, since I also have 3 Hospital sponsored upscale thrift shops(all money goes hospital) right by me, & I do most of my games spending there.
They often get Gamecube, Xbox, 360, PS3, & PS3 games in, and re-sell them for only $3,(and only $1.50 on their special monthly 1/2 off just for tapes, movies, & video games).
Just yesterday, they had 22 PS2 games there & I managed to grab 8 of them that I didn't already have, and only those that were in mint condition with everything there, for only $2 each.
Games like MVP Baseball2004, Sega's NCAA College Football 2K3, Summer Heat Beach Volleyball(like DOA girls in Paradise???), Tekken Tag Tournament, to TC's Ghost Recon, Rainbow six 3, & Splinter Cell:Pandora Tomorrow.(I already have some of them in my original xbox collection).

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Underdog15
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Tuesday, July 13, 2010 @ 11:06:59 AM