File this under the things you really didn't want to know category, right between the "yes, your parents had sex to make you" and "McDonalds cheeseburgers are half tofu, half insect protein" files. Next Generation has documented that GameStop makes loads of money by selling you used games. Shocking, we know.
While GameStop sells more dollars in new software than used, their gross profits on resales are indisputably the $650 million lifeline of their business. Then again, all those consoles GameStop sells—that's basically charity work. Here's another graph showing you the breakdown even better:
You see, even though GameStop sells roughly a billion dollars in consoles a year, they're not even making a tenth of that money up (directly) in profits, pulling in less than 10-cents on the dollar for the hassle. For new games that number jumps to 20-cents. But then, through some creative accounting in their buying back and reselling, GameStop makes an industry-dwarfing 50-cents of every dollar from resold games.
As they say in France, that's curraazzzeeee.
But as they say at the Gap (or any other clothing retail store), it's not that crazy.
By the Numbers: Used Games Revisited [NextGeneration]











Comments
I HATE YOU GAMESTOP!!!
Gamecrazy FTW!
This must cost publishers more money that piracy.
*than piracy
All that profit from used products and they still can't treat their employees or their customers with any respect. Hey everybody who trades in their games: sell them yourself at amazon or ebay or something, you'll make much more that way.
"McDonalds cheeseburgers are half tofu, half insect protein"
First time I read over that, I saw "half incest protein". What the hell's going on in my head?!?!?! REOAR!!!
This is just good business. I would rather save 5-10 dollars and buy a used game than pay full price for a new one. I don't care.
All I like Gamestop for are moderately rare GBA games for $3.
I can get most games new at Target for less than Gamestop would charge me used.
I still don't understand why people trade in used games at gamestop to get half the price they paid for it originally. I finished assassins creed and ebayed it and got $5 less than what I got it for new. Stop being impatient and sell games yourself- if it's new you will end up with a better deal than trading in gamestop.
@ghnvt:
It makes sense to sell used games... what isnt fair is the trade ins.... that's where the money is made.
Now we see why companies get sad at GS for selling used games. Now if they had this much money for selling used games, maybe they can stop putting stickers on the inside of the case.
@Manny: Excellent point, and yet you don't hear people calling Gamestop thieves or scumbags.
OMG the parents part i think i threw up a little...
@kyosuke9999:
This is very, very true. I sell my stuff on GameTZ all the time and get alot more than I would of got for it at GS or even a pawn shop.
A big F U to publishers.
I don't know about most of you guys, but I'd rather pay the extra to 10-15 bucks getting my games new.
You know, I just ate lunch at McDonald's 15 minutes ago. Thanks.
This makes me even more likely to keep using the direct trading sites like goozex or game trading zone. It keeps the value of games within the user community.
@Fyren: Agreed. Gamespot didn't earn my money, the developers did.
What this chart shows is that if you don't buy any used games from Lamestop, the company will crumble. XD
Never buy used support the developers... I rather see some of the money go towards the makes of the game than the money go to EB Game Stop...
My brother original BF2 cd whas broken, so he buy another BF2. A used copy. That way he play with the original CD-KEY online (the game needs the fisical cd).
Used games is a good way to buy games you will never buy on fullprice, or are old gems you will never see again on the "new games" area.
I am waiting for a spanish copy of Oblivium to show in the nearest GameStop with a price inferior to 30 € to buy it. Muahahahahahaha... I dont want to pay 50€ for a dumbed down Morrowind.
@DigitalHero:
die, and then burn and burn...
There's one thing you have to factor in : GameStop makes money twice on selling games if they're lucky. First they get the 20% gross profit for selling a new game and then another 50% gross profits for selling the same game again through the used market. There's basically no cost to selling used games. You have people trade them in for peanuts and then put it on a shelf to wait for someone to buy it. No wonder you can't go near a GameStop without being asked if you have used games laying around, they push used games because they're incredibly profitable.
On another hand, as Manny said, game developers/publishers don't get a penny from the used market.
Good ol' Steam. I can give you guys my money with no middle-man in between.
As for console games, I usually try to stay away from Gamestop. Ebay/Amazon.com usually get my purchases.
The exchange rate over at Gamestop is fucking ridiculous. I made the mistake of buying Manhunt 2 for the Wii and returned it the next day. The buy it for $15 and then a see a resell one for $35.99 just $5 less than the damn "new" price.
Same thing with other games, easily they gain $20 or maybe even $30 for every one they buy and resell :o/
Is that true about the MacDonald's cheeseburgers? Please say it isn't true. They're so tasty. Actually, they're not, but the grease makes them slide down the gullet quite nicely.
And the only games I've traded to GameStop were games I would only have been able to sell for a few bucks on eBay - by the time eBay takes its cut and you have to deal with packing it up and bringing it to the post office, it isn't worth it. If I can get $10+ for it, eBay is the way to go.
And the only games I buy new from GameStop are preorders that I know will be still in the seal. Selling open case games as "new" is a scam. But I usually go to Best Buy or the like for preorders.
i wonder how many times they can resell the same game
You'd think they'd be trying to shift that a bit, get away from the market with less of a future. There'll always be new things to sell, but everyone and mother seems intent on scrapping the resell market.
To UK game customers, this is like the ********s at Game and Gamestation who'll buy your games for virtually nothing. :D Go to Cex, sort of a new chain of electronic buy/sell but are way better value.
But again like it was brilliantly put - this aint new god damn it.
P.S. ebays good too
@TheHun:
wow, good question...
This is why I rent games from gamestop. Buy and trade back on the seventh day. If I can't finish it then buy it again and trade return it for my cash until I do finish it. It only works for used games. Also, take advantage of their rare, buy two games and get one free sale.
@TheHun: indefinitely.
Thanks Mark. You owe me $6.50 for the McDonalds I just threw out. :p
@blazinnoni: Only keep games that you know you will play.
@blazinnoni: I got to play Bioshock, Halo 3, COD4, and Orange Box with the same 60 bucks and I still ended up getting my 60 doallars back.
kinda sucks for the developers who don't see a dime of that.
Then again how is it any different than rentals?
That is disgusting. They're selling the same product over and over again without giving anything back to publishers.
I've completely cut off Gamestop. I buy and sell used games straight to other gamers that I meet on the net and I buy new games at Best Buy. No need to preorder ever. You go in and buy a game that they have plenty of for anyone that wants one. Like shopping in a real fucking store is supposed to be.
Gamestop is a glorified pawn shop.
Just wait for the day when downloadable content kills Gamestop.
It will be glorious
I don't get the hate, ebay it or sell it/trade it to gamestop. I have no problem whatsoever with the used games industry, I bought the game if I keep I keep if I sell or trade it is my choice for how much and to whom. No one can tell anyone what they should do with THEIR freaking copy, you didn't earn the money and you didn't pay for it.
@giddieon: I play games for entertainment, not charity work, next time you rent a dvd movie I'll be there and bitch at you for not buying it or didn't go to the cinema when it came out.
Next people will tell me game rentals put developers out on the street begging for food /sigh
Nice work Gamestop. But your pay for pre-orders, thats a scam right there, Ebgames and Game in europe does not charge for pre-orders :)
@Sundermania: So if Gamestop makes profit on used games it is WRONG, but when you make profit it is okey and devs sees that money HOW?
Oh and I like Pawnshops too.
After the crazy way they handled the Call Of Duty 4 release (no copies available at release unless pre-ordered) I vowed to never shop there again.
Another point I want to fact is if games were cheaper more people would buy them new hence more money first time round.
That should read: Another point I want to make*
@giddieon:
There are two easy ways for developers to defeat this.
One, market their games so that they are "must have" on release day.
Two, make the games good enough so that you aren't tired of them and ready to trade them in after two weeks.
The second one is really crucial. I'm tired of buying games and feeling like I just completely wasted $60. I much prefer waiting a while and buying used so that I only feel like I completely wasted $20.
This is why more games are going online. Cut out the middle-man. Cut out the used/rental market.
Bleh, who buys new stuff at GameStop (other than preorders, of course)? I've heard all the logic behind it and all the counter arguments, but you know what? I don't care. Opened case ≠ new game and never will. You can keep your gutted games...but I digress, I do like being able to pick up older (used) games there.
Well, they currently give you $23 for a copy of Ace Combat 6 on the 360 and sell it for $54.00 (new it's $59) They are making money for sure.
I buy all my games pre-owned. And if that makes me a dirty developer hating scum bag, then so be it. I simply cannot afford to spend £50 on a game. Plus I only buy good games, and if I don't like a game that has gotten critical praise, I sell it on for a decent amount of money. Seeing as I don't do next gen (I'm poor, okay?) I usually pick up my games 4 at a time for £5 a piece, from Gamestation, and resell back to them for £3, if I really don't likea game. The guys in my branch know a lot about games, and symathise with any issues you have. I assume that they're the UK version of Gamestop, or close enough, so I feel I should stick up for them.
Man, that's gross. :/
Personally, I find that pawn shops, garage sales, small/local game shops, and other sources are better means to get used games than GameStop. With most used games at GameStop, they're only $5 cheaper than a new copy, even if it was just the disc alone. Sometimes you'll find a good deal on a used game, but not often.
I would also like to add, if there was no used sales in Game and Ebgames where I live or in my country for that matter then it would be pretty hard for me to get a hold of some games that the publisher just stopped making. Not everything can be found in places like ebay etc where I live.
Huh, so little on consoles? Guess they're not too bad. Haha. I actually like them, I don't see why people dislike them. Used games are good ideas.
If its money you want for your games, sell 'em on ebay or Craig's List. A much better ROI. Also you don't have to spend the "trade in value" at Gamestop. win-win.
@Adam In Texas:
Well, sure, but they're also the ones taking the $23 loss if they don't sell that copy of that game.
They undoubtedly make good money on used sales, but they are also the ones taking all the risk. Often times stuff they buy back doesn't get re-sold. Hell, a lot of times GameStop buys used stuff knowing that it won't sell. They do it to build up the service, so that they when they do sell used stuff, they get healthy returns on it.
It's business. With property rights how they are and the market being free, these sorts of transactions shouldn't surprise anyone.
its a great place for older gen games (like KotOR for xbox tha