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GameStop expected to score US$ 2B due to used game sales |
Listed in: News Tags: GameStop, Wall Street Journal
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Some video game publishers and developers have been quite vocal about their distaste for the used games business. They're missing out on the profits, and when you find out just how much profit it is, you'll want to get in on it too.According to an article in the Wall Street Journal, game retail giant GameStop will bring in about US$ 2 billion this fiscal year thanks to its used game business alone. That accounts for almost a quarter of GameStop's total revenue and shows a 22.4% increase from last year's US$ 1.6B.
How'd it get so big, you ask? Well, for every used game sale, GameStop doesn't have to share revenues with the game makers. GameStop's gross profit margin for a used game came to nearly 50% in the quarter ended Nov. 1. Compare that to the profits for a new game sale that ranges only between 5% to 20%.
So yeah, big numbers, huh? I'm actually still seesawing a bit about the whole used games debate since, on one hand, some people really do lack the resources to spring for a new game all the time. On the other hand, though, if the game makers don't profit then that means no more games for us to buy. It's a dilemma for me.
The price GameStop charges for used games is just criminal though, especially if you compare them to the chump change they buy back these used games for.
What about you guys? Sound off in the comments section below if you have anything to say.
Related articles:
- GameStop: limiting second hand game sales hurts consumers
- Microsoft's Alvin Gendrano: Good DLC can curb used games market
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i went into GAMESLOP a few months ago to trade in 3 games. They wanted to give me 27 for them. I laughed. Went to Blockbuster and got $72 credit for them. I have some credit there on some games since I was unaware that Blockbuster did trades. Once that Credit is gone I refuse to go to LAMESTOP. Id rather spend the extra 5 bucks shipping for a rare game off ebay than give them my money. And yet they pay their employees CRAP (have a few people that told me what they get paid) so all the SUITS can take that money and give them 3 cent raises each year. What a JOKE???
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back in the days without NoUMD, i picked up a used Legend of Heroes just to fill the UMD drive. So gamestop IS good for something...
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XD
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If you have those old POS games for Xbox and PS2, GS is usually the only option if you don't want them sitting around anymore, since no one else will accept the trade and most people on eBay don't want them either.
Speaking of old *****ty last gen games, I remember a GS employee explaining why they underpay and overcharge so much for used games people want. It's because they have to make up for the money they lose on trades they know they will never sell. IE someone brings some crappy old PS1 game in, GS has to give them $1 for the game because that is their company policy, accept trade on ANY game. They mark that as $1 down the hole, because no one is going to buy it. If that happens one million times a year, that is one million dollars they have to make up for on games people actually buy. And that's just the $1 games, they also have to make up for the $2, $3, $4, $5 etc games that never sell.
GS still sucks tho
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This is how you play the game:
(1) I wait about 6mos to 2 yrs after a game comes out, then I buy the game USED from Gamestop for anywhere from $10-$30 - which is better then the new $59.99 most PS3 games are. (Did the same back for PS2 in past). I now have 60 PS2 games, & 13 PS3 games - NO WAY I'd have that many at reg. new prices!
(2) If a game really is Awesome I will buy it brand new & usually keep it forever since it's that good. But, if it disappoints, I don't sell to Gamestop I sell it on Ebay :)
(3) Gamefly is my new best friend. I pay $30/mo for 3 out at a time games. I average 9 games a month (multi-systems) = 108 games/yr. And if I like them I can buy used from Gamefly. Example I kept Beowolf for $3.99 (after reward discount).
BOTTOM LINE: Today Games cost too much!!! If Game makers would sell PS3 games brand new for $39.99 I think they could make more money in the long run. Less profit per game, but would sell larger quantities. More would buy new then wait until used.
Finally it's a FREE MARKET - so remember everyone of you out there that sells stuff on EBAY - can't complain about Gamestop - you want a high bid to right? :)
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It's nice if you live on campus and have a system set up where people can swap games easily and quickly, but not everyone lives on campus (thankfully).
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I should've sold it to her in the first place lol
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i like having them all on my shelf as my collection... even if they are really old ones and even if sequels have already come out for them...
even sports games where they release a new version every year like NBA Live/2K and such, i still have them all.
when i buy a game it's a keeper and i go brand new.
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if you want to pretend to be somebody "old enough" then do a better job of doing so...
among all the posts here your's is the one that looks like it's written by someone still waiting for his first pu'bes.
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But I find that when I pay the full 60 bucks for a game, I'm much more inclined to play it. And I enjoy it more too.
When I used to pirate psp games I would spend more time downloading games than actually playing them, and I would stop halfway and go to a new game, because I spent no money on the last one. I end up having no respect for the game!
When I buy a ps3 game I think I'm just subconciously convincing myself that those 60 bucks were a good investment. But hey, if I enjoy it more then so be it!
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I think the only solution really is to give the developers a cut of used game sales. This keeps both camps happy.
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I'm lucky enough to have a locally owned game place just a bit further from me than GS called Game Quest. They offer games from all the way back to the Atari, and they offer new games.
They give me about 3% more than Game Stop, and they have so many better deals. Every weekend, buy 2 DVDs, get 3 free. Huge bin of sports games, usually about 2 years old (Really not bad) for $1 each. They also often have buy 2 used games get 2 used games free. They have tons of odd merchandise like plush Marios.
So much better than Game Stop...:P
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If you dont like the offer then don't do it. Sell the game to your friend for $5 instead. Since you seem to think that's a much better deal. Better yet, just give all your old games away...
You obviously have no clue as to how BUSINESS works.
Typical child mentality.
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You must be comparing your scratched up game disc with no manual to a fully boxed item.
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If you ever saw a P&L from Blockbuster you should shlt your pants!!! Yet here are you crying like babies over Gamestops P&L.
The sad part is, even during all this crying I bet 99.99% of you don't even know what a P&L is.
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Personally I believe devs and publishers should focus more on DLC providers as a competitor for used game sales. They can easily charge the price of a used physical copy or preferably undercut a used physical copy to become competitive instead of *****ing for someone else to step in for them to put a stop to used sales. It costs significantly less to produce a DRM digital copy like they do on the PSN and Steam then it does to produce a physical copy thus yielding a higher profit potential.
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Have you failed grade school because you were picked on, or are you still in it?
Also, what do YOU know about business?
You download ISOs and you have memberships on several other websites across the net.
WHAT COULD YOU POSSIBLY KNOW!?
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buy used games (use your edge card and look for their buy two get one free sales) then you have 7 days to play the game. and RETURN IT! full money back or hey get something else.
They HATE when people try to use them like they are “gamefly”. but they cant tell you no! tell them to read the fine print. if you “dont like” the game or it “doesnt work right” they cant stop you from returning a used game!
sorry gamestop! when you have *****ty managers that mess with the wrong employee your gonna get screwed!
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but it was 720p(it says it in the back) and i wlked back to the store and i told him that i want my full money back because i just bought it on his face and he offered $3. SON OF A B*TCH
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Here's a quick solution:
GameTZ.com
It takes a bit to set up, but that doesn't take any longer than driving to Gamestop and arguing with their managers over some n00b concept. You'll thank me later.
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I call child mentality when I see it. If you get caught in the line of fire then maybe you need to evaluate yourself.
"Also, what do YOU know about business?"
The possibilities of what I know are limitless. Why do you assume otherwise? Who told you I download ISOs? Seems to me you ASSume a lot!
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Poor customer service over anything else but two of my gamestops have decent people in them.
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