GameStop addressed Best Buy's plans at their annual shareholders meeting in Southlake, Texas on Tuesday, explaining that their years of customer service give it the winning edge over cold, calulating machines.

"GameStop understands that trading in used games and consoles is a highly-assisted activity," the company said. "We are very confident in our business model that allows our expert associates to help consumers trade in product, a fact not addressed with a self-serve process."

Of course, the expert associates generally don't do more while trading in then look at the games and tell you the price you'd be getting, which is what the kiosks themseves do, but this is beside the point.

The point here is that GameStop isn't afraid of Best Buy. They aren't afraid of Amazon. And if you start accepting game trade-ins, they more than likely won't be afraid of you.

GameStop is unfazed by new rival in used-video-game market [Star-Telegram.com]

Average used game prices started at a high of $12.69 on Jan. 1, dropped down to a low of $8.57 on Nov. 3 and rose back up to $9.68 by the end of 2008, according to the site. The free fall from January mirrored a similar drop in 2007, but ended up shaving an addition 11.8 percent off resales prices.

The article's author JJ Hendricks believes the drop in used game prices is because of the recession, but I'm not so sure that's a good explanation. Looking at the charts you can see that 2008 prices drop below 2007 prices in April, regaining strength for only a month or so before dropping below 07 again.

Perhaps it's because of the quality of used games being sold. There is certainly anecdotal evidence that gamers are holding onto more recent titles longer than they used to.

Average Game Prices During 2008 [Video Game Price Charts]

Future Shop's director of merchandising Michelle Grawe expects that the sale of used games will draw in younger customers to the chain while doubling the chain's video game sales over the next three to five years. Grawe also commented that the chain is prepared to undercut GameStop prices in order to lure customers away from the chain, which until now has been Canada's only major retailer offering used games.

If the used game push is successful in Canada I wouldn't be surprised to see this initiative rolled out in U.S. stores soon after.

Best Buy to enter used video game market [ReportonBusiness.com]

By the end of this month, they will have 25 stores supporting used game sales. And by the end of this year, that number will grow to somewhere between 50 and 60. Given enough time, that number could grow as high as 689 stores (the total number of Circuit Cities in the US and Canada). That's not exactly enough to thwart GameStop's 4,700 storefront monopoly, but a little retail competition never hurt anyone.

Circuit City To Expand Efforts In Used Videogame Sales [CNNMoney via OpposableThumbs]

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]

The above sign says that the store is no longer purchasing PLAYSTATION 3s. It doesn't say "used" PS3s, but it would be safe to assume that's what it means. The unsafe bit: We don't exactly know when this photo was taken. It surfaced online within the last few days, but there are rumblings it's from last December, which would make this news "old" ('cause they're so much more desirable now). Not sure, though! Brian Ashcraft

Don't Want PS3s: Original Pic [via 2ch.]

When people line for Wii pre-orders, chances are it will be a success. And when stores start putting up signs offering to purchase those consoles at prices slightly higher than retail, you know in your heart of hearts that the new console is going to flatten and destroy Japan. The Nintendo-centric Super Potato in Den-Den Town has put up notice that it will purchase "used" Wiis for 1,000 yen above the 25,000 fixed sticker price. Not expecting Yahoo! Auction craziness, but rather, consoles snapped up fast and sequestered away to people's homes for the upcoming New Year's holidays. Brian Ashcraft

Used Wiis Wanted [Senaka Blog]

When Final Fantasy III went on sale last week in Japan, Square Enix and Nintendo also sold a special FF III bundle, which included a copy of the game and a special Final Fantasy DS Lite. The US $200 bundle, needless to say, sold out quick. The bundle is available to RPG-crazy Japanese gamers—for a price. Used ones are turning up in Akihabara for almost US $500. That's almost like buying a PLAYSTATION 3! Brian Ashcraft

More Here [Akiba Blog]

The first day I made the trek to Akihabara, it was all too much to take in. Dozens of video game stores, featuring thousands of titles, from brand new to pristine condition retro surround you. Add to that the millions of pounds of capsule toys, airsoft guns, manga and (best of all) porn and it makes for geek sensory overload. If you ever make the journey, bring double the cash you'll think you need and an empty suitcase.

But Akihabara is obviously not the only place to score virtually any game you can think of in Japan. One Live Journal geek chronicled his visit to a Gumyo second hand store, posting an orgy of pics of old-school Japanese gaming goodness. That crushing cascade of plastic wrapped Super Nintendo games is just a tiny sample of the overflow of used software.

Now, I have no idea where Gumyo is, but if I do make it back to Japan this fall for TGS, I'm going to try to get there. I'm in desperate need of a like-new Neo Geo! Michael McWhertor

Gaming Goodness for the geek in all of us! [via GAF]

Theoretically, you should be able to walk into a Akihabara or Den-Den Town game retailer, plunk down some a fistful of yen and walk out with a Dreamcast. Theoretically. The recent crackdown on used electronics has made it more difficult to purchase old hardware. Just how difficult? GameSpy's Jonti Davies recounts a recent trip to his local Japanese game shop:

Staffer Number Two (upstairs): Well, you see, there has been a new law passed which says we can't sell such hardware in this store.

Me: Really? You don't have any Dreamcast consoles here?

Staffer Number Two: Oh, we do have one. Would you like to see it?

Me: Certainly.

Staffer Number Two: It's in perfect condition... just 5000yen.

Me: Um...?

Staffer Number Two: Just buy something for 100yen so we can give you a receipt, and then we'll sell you this Dreamcast... unofficially.

When I was trolling through Akihabara for our recent feature, I came across stacks and stacks of Dreamcasts, out in the open and ready for purchase. It doesn't seem like this law is being seriously enforced whatsoever. But, Japan is full of rules like that. Brian Ashcraft

More Here [GameSpy] via GSW

You buy a PS3, you keep it. Forever. Until you die. Maybe not, but Sony's doing their damnedest to make sure there is no used PlayStation 3 market says UK site Games Radar. According to the site:

It seems that Sony is planning to adopt a licensing system that will mean gamers won't own the PS3 titles that they've paid money for. Instead, they will only be purchasing the licence to play the game and that the software itself will still be Sony property - meaning that the disc won't be the customer's to sell.

Next Gen reports that Sony did refuse to comment on the story, but has a patent on tech that ties software with an individual piece of hardware. But is this story true? An insider tells Next Gen, "I know that Sony is very upset about the used games market. But this story seems a bit far-fetched." Brian Ashcraft

More Here [Next Gen] Thanks, Uta!

Here's a "used" DS Lite for 16,800 yen (US $142). Funny, brand-new ones book at 16,800 yen. Does that mean the DS Lite insanity has ended in Japan? Hopefully. Will I be able to buy one this weekend? Heh.

Image Here [Ponbashi]

Unopened Premium sets and opened bottles have been appearing on second-hand store shelves in Den-Den Town. Used FF Potion? Ewwww. No thanks.

Image Here [Ponbashi]