Analyst Pegs U.S. Used Games Business at Nearly $2B

October 15, 2010 -

The Street is running a three part series on the popularity of second-hand goods in a down economy and, in the second part of the series, which focuses on the used videogames market, Wedbush analyst Ed Woo pegged 2009’s used videogame market at “close to $2 billion.”

Woo said that figure represented 10 percent growth and added that he expects the sector to grow again in 2010. The article further claims that GameStop, which does not break out used videogame sales in its financial results, “bases nearly 80% of its bricks-and-mortar business on trade-ins.”

The used games market, in a statement attributed to Scott Steinberg, CEO of the Tech Savvy Global consulting firm, “is costing game developers billions of dollars each year.”  Steinberg added that, “The pressure is so crippling, many publishers are trying to find ancillary means and testing out pilot programs that can generate revenue.”

Economist Dian Chu was asked if the prolonged “thrifty behavior” of Americans could have a significant impact on the economy. Chu replied, “We're spenders. I don't believe that saving behavior will change or last long enough to have a significant impact on our economy.”

Of course, the article also claims that the Lord of the Rings Online operates under a monthly subscription model; the game went free-to-play on September 10.

In related news, the website of Fox’s Dallas affiliate features a story on a pair of twin brothers who started a used game business while still in college. The home-based business generated $300,000 in sales last year and the brothers are expecting to hit $500,000 this year.


Comments

Re: Analyst Pegs U.S. Used Games Business at Nearly $2B

And Gamestop probably have at lease 80%of all that money.

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PHX Corpand now it's ready to go for everyone08/31/2015 - 9:35pm
PHX Corpok, done http://www.twitch.tv/trustygemtwitch I have to put on one more finishing touch and it is ready to go08/31/2015 - 9:19pm
Andrew EisenFeel free to leave us suggestions on Facebook or Twitter too. We're going to be busy but we'll try our best to keep an eye on 'em.08/31/2015 - 8:59pm
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Andrew EisenFor the show, I'd like the chat open to anyone who wants to watch.08/31/2015 - 8:55pm
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Andrew EisenI do but I haven't seen a way to incorporate viewers to chat without specifically inviting them to the event.08/31/2015 - 8:49pm
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Andrew EisenGP Movie Night!08/31/2015 - 8:41pm
Big PermEveyone should be too busy with phantom pain to notice GP is down. Hail Vidya!08/31/2015 - 8:40pm
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Goth_Skunkcacophany of voices all trying to talk at once.08/31/2015 - 8:37pm
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Andrew EisenWell, I can't stream anything because I'm at work all day (still am).08/31/2015 - 8:28pm
Goth_SkunkIt seemed simple enough to me. During a shift at work I was bored and hopped on a Google Hangout that was GamerGate themed and streamed on YouTube. Granted, I was not the host, but joining in seemed fairly straightforward.08/31/2015 - 8:24pm
Andrew EisenSo, like a space where we can all hang out and chat while the site is down? I can dig it. No idea how to do that though. Is there a way to create a public chat in Google Hangout?08/31/2015 - 8:23pm

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