Tag Archives: used games
Wed, Apr 29, 2009 | 07:56 BST
Used games supplied almost 50 percent gross profit margin (gross profit divided by total revenue) to Gamestop’s in the last fiscal year, according to this Gamasutra piece.
The figure compares to 21 percent for new software, and a shocking 6 cents in the dollar for new hardware.
Gross profit margins on used software have, however, increased only 1.44 percent in the past three years.
Every other segment has seen a decrease in gross profit margins during the same period: new hardware down 1.4 percent and new software down 2.6 percent.
Tue, Apr 14, 2009 | 18:06 BST
During GDC, David Jaffe, Jeff Gerstmann, and Michael Pachter sat down with GameTrailers TV to talk about gaming in the recession. Watch the discussion after the break.
In it, Jaffe’s weighs in on the used game market, Gerstmann’s talks about OnLive, and Pachter’s looks into his crystal ball for the coming year.
It is definitely worth the watch. Follow the jump.
Thu, Apr 09, 2009 | 08:56 BST
A British man found some “ecstasy tablets” in one of the used GTA games he purchased at a GameStation in Gloucestershire.
“When I opened the box up, the cling film wrap fell out. I could not believe it. I have two children and my son plays Xbox all the time. He could easily have opened the box and found them,” Richard Thornhill told the Telegraph.
“I dread to think what the consequences would have been if he had. He is only 12. He could have died. It was a pre-used game, but that should not make a difference. My wife is beside herself over this because she keeps thinking about what could have happened and so do I.”
Richard never mentioned why his son would have been messing about with mature rated game in the first place.
Tue, Apr 07, 2009 | 22:26 BST
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.
More through the link.
Thu, Mar 05, 2009 | 23:22 GMT
GameStop doesn’t think Amazon’s foray into the used videogame market will succeed.
CEO Dan DeMatteo told Edge today that the gift card scheme was something his firm unsuccessfully tried in the past.
“I give the probability of this working at zero,” he said. “Electronics Boutique also tried it and failed. There’s no consumer acceptance. With consumers, there is an immediacy for currency when they want to buy a new game.
“It didn’t work for us, and I can’t see it working for them”
Trade-in requirements from Amazon state that customers have to wait for the gift card to be processed and shipped, instead of getting an immediate recoup from the trade.
More through the link.
Thu, Mar 05, 2009 | 20:09 GMT
Amazon has entered the used videogame business.
From now until March 19, customers will receive 10 percent off a “future single game or accessory purchase” when they trade in a used game.
Amazon trade-in requirements:
- Games must be undamaged with manual and original case and be postmarked no later than 7 days after submission.
- Print a pre-paid shipping label (provided free by Amazon) and packing slip, package your games, and ship them to Amazon.
- An Amazon.com Gift Card will be deposited into your account upon receipt of games
Cheap Ass Gamer says that used titles are purchased by a third-party called NorAm International — which buys used books, CDs and DVDs through online stores on both Amazon and Half.com.
Mon, Feb 23, 2009 | 13:47 GMT
Xbox Europe boss Chris Lewis has told GI that second-hand games are just something the industry has to live with.
“I’m a fan of the ecosystem overall,” he said.
“I can see the positive in it, because I can see that what you then get is more and more people touching, playing, experiencing a game that they may not otherwise have access to.
“I think you’ve got to try and extract some positive from it, and that’s undoubtedly a good factor – a positive swirl of ecosystem that results.
“Clearly it’s a reality, and certain retailers are very focused and spend a lot of time on it. It’s good business for them.”
The exec’s comments come after Gamestop boss J Paul Raines said at DICE last week that used game sales don’t harm full-price products.
Wed, Apr 09, 2008 | 20:07 BST
According to this Gamasutra report, 49 million American gamers buy both used and new games.
At this year’s MI6 game marketing conference in San Francisco, the MI6 organizers exclusively commissioned global consumer research and consultancy firm OTX to study the video game resale market in the United States.
These details, provided by its creators alongside today’s presentation, include the fact that 60% of gamers purchase both new and used titles, and that sellers (who make up a third of all gamers) tend to reinvest their money in the industry with new game purchases.
Click through for some splendid Venn diagrams with words on them.
Mon, Feb 11, 2008 | 19:15 GMT
Major US retailer Circuit City is to start selling secondhand games, according to this.
The store chain is to trial the service in 10 outlets, with plans to expand to other shops if the test is a success. Which it almost certainly will be. The move by Circuit City is a second step to get into the games business, after recently launching a discount plan called the Gamer Savings Club, which has now attracted more than 25,000 members.
In case you’re wondering why this matters, or why American publishers are probably reading this news through the gaps in their fingers, take a look at this.