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

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

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