GameStop expected to score US$ 2B due to used game sales |
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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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Comments [refresh]
Thats all you save on used games. And alotta times thats all they give for your games...bastards.
Ppl gets con everyday when they trade games. I bought this brand new PSP game..and tried to trade it..they offered me $10 buck when i bought it for $40. I bet, they would sell the same ***** for $30 atleast if not $35. They rippp ppl off so much. I hope these bastards get screwed somehow.
Thats INSANE. Its HIGHWAY Robbery.
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???
they certainly do rip people off. BUT sometimes a cheap crappy old game is all one can afford... and at least one can get a little dough back for a game they've beaten a thousand times...
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...
Judging by your vernacular, I wouldn't be surprised if you get conned by everybody!!
i get two to three games for free from gamestop a year thats the only reason i go there i do surveys for erewards and get a 25 dollar gift card four times a year
WOW they screw every body and the make money doing it.
XD
You had fairly new games that BB is currently accepting trades on. They only accept trades on a very low number of games. GS will take any game.
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
NewsFlash -> Gamestop is a for Profit biz! Of course they are going to pay you LESS for a used game then they sell it for.
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? :)
if you think thats bad i used to work for the company and it worse with the systems they give you a paltrysum for a system they have thier own place to fix the usualy at around 10-15 bucks and then they sell them back at a high price.so they give you 30 for a psp get it fixed for 10 and sell it for 100-129 refurbished!!! cool huh
I hate GameStop retail locations with a passion. Anyway, it's no wonder GameStop is making such a decent profit in the used game market. If you think about it, when you go to the game store to pick up a new game, why not sell the games you no longer want? You're already going to a place you know buys and sells used games, so why bother with a service like that game trader or whatever that just screams "shady-as-heck"?
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).
I once sold my GC Mario Kart to them for 8 (Euros), then right after I sold it to those scammers a woman came in and bought it for 25.
I should've sold it to her in the first place lol
Waaahhhh!!!!! Waaaaaaahhhhhhh hhh!!! You bunch of f*ck*ng cry-babies, shut the F up already. News flash douche bags, Gamestops trying to turn a profit, it how things work in the real world, its how business is sustained, maybe one day all of you will realize that if you ever make it out your parents basement. Don't like gamestop? Nobody's hold a f-ing gun to your head forcing you to sell your games there you idiots. I'd tell you all that you should sell your games on ebay but you're probably not old enough to have an ebay account or you're just too stupid, or too f-ing lazy to register one, a real catch 22 for you f-ckhead losers.
The price tags. They need to get the tags that you can easily remove because that s*** f**** up the nice covers.
my games and i don't buy used games...
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.
based on ur post who do you think is looking like a "f-ckhead loser"...
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.
It sounds like you're the one who's crying dude, hahah.
which I got for 30 bucks 2 weeks after release from an idiot.
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!
I find it rediculus how Gamestop is allowed to get away with such robbery, but if used games were say 1/2 the price of a new game that only hurts the game studios since folks will be less inclined to purchase them new.
I think the only solution really is to give the developers a cut of used game sales. This keeps both camps happy.
Go and trade in a game and they give you less than five dollars. That same game is sitting on the shelf, all smug looking, with a little yellow price tag that says thrity dollars. Rediculous!
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
if gamestop is ripping people off so much then the advantage is there for a competitor to set up shop and undercut them. Or for existing competitors to step up their advertising and attract that business back. It'll happen eventually.
You can always use your alternatives! Spend on average $15 per game to sell it on eBay and rip most of your hair out while doing it.
Um...how is that a con? You know what they offered you, you know how much they are GOING to sell it for..... where's the con?
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.
You my friend are a liar. There is no game at a GS anywhere, where they give you less then $5 for then turn that around for $30. That is pure BS.
You must be comparing your scratched up game disc with no manual to a fully boxed item.
I think it's hilarious that when a company turns a profit...all of a sudden they are ripping people off.
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.
just like Microsoft.
I think that maybe if these developers don't have a problem staying with a company that pays them to shovel out ***** they don't deserve to get a cut from used game sales. If they really have skills that should be rewarded then why stick to making a character model for a horrible looking game or matching up voice work for horrible dialog or creating horrible animations, physics or combat for a paycheck? No amount of money is worth me looking like have no pride in my career choice or any actual credibility or skill. The look of games nowadays are horrible. There should be no games like GTA or Devil May Cry or Call Of Duty and Halo that are THE games people look forward to. All games should be awesome but the fatcats just want money and somehow devs have no pride in themselves cause they keep with their horrible specifications and show no proof of a college education even remotely in view of the 100 dumb kids who buy their new Frogger games. So I say f-ck them! the ones who make good games should obviously love their jobs too much to need more money and the others should just quit.
I prefer to buy used copies. Its the same game as the new one and I get it for less (especially since I have an Edge Card). I'm only willing to shell out $60 for a game if I think its worth it and sadly most aren't. If they offered the games on the PSN or XboxLive at the same prices as used games I'd have no problem downloading it direct from the developer instead of going out to the store, but alas they charge the same price (or $5 less) then a brand new hard copy which makes me more inclined to wait a week or two to buy a used copy with my edge card. Good example: new copy of Burnout Paradise is $30, PSN download is $30, a used copy with my Edge Card is around $20. $10 puts half a tank of gas into my car. Does that make me a cheap bastard? In my opinion no it doesn't because trying to get a better deal on the same product is a smart thing to do in this economy.
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.
So if you were to sell a game say on e-bay you wouldn't have a problem giving the developers a cut of your profit? It's a used game sale, so it'd only be fair, seeing as you say GameStop should have to. Bah...
All I have to say is think before you complain. That's how we get into trouble. You say they should do this or that. It's part of there right as a retailer. Any change in rights fall back on everybody. So say they make gamestop pay the developers for a used sale, so will we if we sell a game. They have a right as a retailer to make a profit off of used games. Stop that and we couldn't make a profit off them. Simple economics. It's not just games either. I hear people complain about everything with out thinking how that complaint can effect them and everyone around them. So PLEASE, think about what your saying.. We already have enough problems with are rights as it is...
Why do you keep calling people "kids" and "child?"
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!?
how about instead of letting it all bother you...use their BS against them! trust me i worked there.
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!
Agreed.
They only make $20 off each game sale.
Ripping people off is the American way to make money. You make much more profit that way than running an honest business.
Take oil companies, they've been screwing us for years. Even more when Bush was in office (coincidence?)
Gamestop is a ripoff. I don't complain, I just don't shop there -ever. I don't see why anybody else does.
in gamestop and just as i left GameStop i threw away the recipt and i opened the plastic and i thought that the game would be 1080p
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
They usually have pretty cheap prices on their games, and if you're a member you get GameFly dollars every 3 months to knock the price down even more. I got GRID (fav racing game ever) for like $10 with the gamefly credit I had built up.
Going to Gamestop for used games, buying or selling, will do just that to your gaming life: namely, stop it. They're pretty straightforward about their goal: STOP people from playing GAMES (by ripping customers off until they can no longer afford them).
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.
You know what I really hate about Gamestop.... when you go in there to buy a new game they never have one in original packaging. Their new games are already opened, I don't know about you but I consider an opened game USED.
"Why do you keep calling people "kids" and "child?""
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!
Because their prices are the same as everyone else and games are usualy in stock. So if you have one close by then why not?
Poor customer service over anything else but two of my gamestops have decent people in them.