GameStop: 70 Percent of Used Game Sales Profits Are Spent on New Games

August 6, 2012 -

While some game publishers and developers have come out hard against the sale of used games, GameStop's president Paul Raines says that the myth that used games are cutting into new game sales is just - a myth. Speaking to Gamasutra, Raines said that 70 percent of all income derived from used game sales by consumers is almost immediately spent on purchasing a new game - to the tune of $1.8 billion to the US games industry every year.

"We are not ashamed of the pre-owned business and in fact we believe that it's good for the industry," he said. "We're really not cannibalizing new game sales. That's a common misconception. The knowledge of how this model helps drive sales really resides at the publisher level."

Raines goes on to say that developers persist in the argument because his company has not been successful in educating them, for whatever reasons...

"We have not been successful in communicating to developers how this business really helps," he said. "So my answer to developers is that we are driving growth in a category that needs to grow. “We think there's a real lack of awareness as far as how it's good for the industry. The transparency you're seeing from us is because we want people to know about it, helping people understand what we're trying to do for the industry."

Source: MCV


Comments

Re: GameStop: 70 Percent of Used Game Sales Profits Are ...

They sell new games, most of their profits would go to pushing the most hottest items.

Its silly to think that most of the money dose not go to new games.


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Let's renegotiate them.

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Re: GameStop: 70 Percent of Used Game Sales Profits Are ...

I would think that the majority of income consumers derive from used game sales would go towards purchasing more used games.

 

Andrew Eisen

Re: GameStop: 70 Percent of Used Game Sales Profits Are ...

I thought the same thing.  Are they buying actual new games, or are they buying "new for them" used games?

Re: GameStop: 70 Percent of Used Game Sales Profits Are ...

Usually when people are bringing in a bunch of games to trade in, they are doing so to get the latest hot game that is coming out. 

At least that was my experience when I worked retail.

Re: GameStop: 70 Percent of Used Game Sales Profits Are ...

Sure but because the latest hot release is typically available used within a day or two of release, I'd still think used games monies would more often go toward more used games.

That's just what I'd assume anyway.  Certainly doesn't mean that's the way it is.

 

Andrew Eisen

 
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