US retailer GameStop has admitted that it “doesn’t like” being in the second-hand games market.
Speaking during a keynote at Develop by Instant Action CEO Louis Castle, Niall Lawlor of GameStop Sweden said it had to remain in the market to survive in the games business.
“We don’t like being in the used games business, but we have to be there. We would have to exit the games business otherwise,” he said.
Castle said the measure being done by shops in the US like GameStop and Best Buy were “thievery”.
“While you’re preserving some margins, used is accelerating changes,” said Castle.
“I can see the train wreck, it’s coming. Pretty soon everyone is losing money. Used is accelerating the decline of profitability for publishers. The oxygen is being sucked out of the room.”
A GameStop spokesperson, however, revealed in a statement that Lawlor’s comments were “inaccurate,” adding it was “the cornerstone of our business.”
“Both the buy/sell model and bricks and mortar retail are extremely important for our business both today and in the future as we continue to grow,” said the representative.
“Our European business is very important to us and we have lots of exciting new developments in the pipeline.”