GameStop expected to score US$ 2B due to used game sales
Some video game publishers and developers have been quite vocal about their distaste for the used games business. They’re missing out on the profits, and when you find out just how much profit it is, you’ll want to get in on it too.
Some video game publishers and developers have been quite vocal about their distaste for the used games business. They’re missing out on the profits, and when you find out just how much profit it is, you’ll want to get in on it too.
According to an article in the Wall Street Journal, game retail giant GameStop will bring in about US$ 2 billion this fiscal year thanks to its used game business alone. That accounts for almost a quarter of GameStop’s total revenue and shows a 22.4% increase from last year’s US$ 1.6B.
How’d it get so big, you ask? Well, for every used game sale, GameStop doesn’t have to share revenues with the game makers. GameStop’s gross profit margin for a used game came to nearly 50% in the quarter ended Nov. 1. Compare that to the profits for a new game sale that ranges only between 5% to 20%.
So yeah, big numbers, huh? I’m actually still seesawing a bit about the whole used games debate since, on one hand, some people really do lack the resources to spring for a new game all the time. On the other hand, though, if the game makers don’t profit then that means no more games for us to buy. It’s a dilemma for me.
The price GameStop charges for used games is just criminal though, especially if you compare them to the chump change they buy back these used games for.
What about you guys? Sound off in the comments section below if you have anything to say.
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