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.