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.

http://www.magicinkgaming.com/

 
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Sleaker@MP - Looked up hitbox, thanks.07/24/2014 - 9:40pm
Matthew WilsonI agree, but to me given other known alternatives google seems to the the best option.07/24/2014 - 6:30pm
Andrew EisenTo be clear, I have no problem with Google buying it, I'm just concerned it will make a slew of objectively, quantifiably bad changes to Twitch just as it's done with YouTube over the years.07/24/2014 - 6:28pm
Matthew WilsonI doubt yahoo has the resources to pull it off, and I not just talking about money.07/24/2014 - 6:15pm
SleakerI wouldn't have minded a Yahoo purchase, probably would have been a better deal than Tumblr seeing as they paid the same for it...07/24/2014 - 6:13pm
MaskedPixelanteIt's the golden age of Hitbox, I guess.07/24/2014 - 6:08pm
Matthew Wilsonagain twitch was going to get bought. It was just who was going to buy it . Twitch was not even being able to handle the demand, so hey needed a company with allot of infrastructure to help them. I can understand why you would not want Google to buy it .07/24/2014 - 5:49pm
Andrew Eisen"Google is better than MS or Amazon" Wow. Google, as I mentioned earlier, progressively makes almost everything worse and yet there are still two lesser options. Again, wow!07/24/2014 - 5:43pm
Andrew EisenI don't know. MS, in my experience, is about 50/50 on its products. It's either fine or it's unusable crap. Amazon, well... I've never had a problem buying anything from them but I don't use any of their products or services so I couldn't really say.07/24/2014 - 5:42pm
Matthew WilsonGoogle is better than MS or Amazon.07/24/2014 - 5:33pm
Sleaker@AE - I've never seen youtube as a great portal to interact with people from a comment perspective. like ever. The whole interface doesn't really promote that.07/24/2014 - 5:28pm
Andrew EisenNor I. From a content producer's perspective, almost every change Google implements makes the service more cumbersome to use. It's why I set up a Facebook fan page in the first place; it was becoming too difficult to connect with my viewers on YouTube.07/24/2014 - 4:50pm
Sleakerwonder if anyone is going to try and compete with google, I'm not a huge fan of the way they manage their video services.07/24/2014 - 4:41pm
Andrew EisenIt happened. Google bought Twitch. http://venturebeat.com/2014/07/24/googles-1b-purchase-of-twitch-confirmed-joins-youtube-for-new-video-empire/07/24/2014 - 4:28pm
MaskedPixelanteI hope Nintendo actually follows through with the DS Virtual Console, that sounds like it could be cool.07/24/2014 - 2:15pm
james_fudgePeople don't deny it persay, they bristle at the idea that it's a "problem" that nneds to be "fixed."07/24/2014 - 2:15pm
Papa MidnightRacism and Misogny are heavily prevalent in the gaming and online arena. Getting people to actually admit that, however...07/24/2014 - 11:42am
Papa MidnightThat very thing is somthing that anyone who has been subjected to racial-based targeting online could actually state that they've experienced.07/24/2014 - 11:41am
Papa MidnightPerfect example: "I have yet to talk to a man who has had to call a police officer due to a stalker, only to be told nothing can be done until they are physically assaulted."07/24/2014 - 11:40am
Papa MidnightNot that said communities are mutually exclusive. Even the very first comment on that last article equates women in the gaming industry with being the n-word. Despicable, aetestable, and (sadly enough) this is not an uncommon presence in either community.07/24/2014 - 11:35am
 

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