Analyst expects rush of retailers to join used game market

Tuesday, 7 April 2009 22:25 GMT By Stephany Nunneley


Lazard analyst Colin Sebastian expects more retailers to start selling used games now Amazon has entered into the market, says a Gamsutra report.

“According to our industry checks, one large consumer electronics retail chain is rekindling efforts to sell used video games, while another general merchandise ‘big box’ store is in trials to buy back games in exchange for store credit,” he said.

Sebastian said that the market sector is worth $2 billion annually in North America, and will further increase competition for the likes of eBay, GameCrazy and GameStop. Add in a 50 percent gross margin and it becomes even more attractive to retailers.

However, as lucrative as that sounds, Sebastian isn’t expecting any newcomers to challenge GameStop’s reign at the top any time soon.

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