GameStop: Used Games Vital To Business


Posted November 25, 2008 - By kijibe

Game developers and publishers need to find ways to stimulate their revenue by boosting sales of new games.

To do that, they're trying to simultaneously figure out ways to dissuade gamers from purchasing used games.

Mike Capps from Epic talks about fighting the secondhand market, "I've talked to some developers who are saying 'If you want to fight the final boss you go online and pay $20, but if you bought the retail version you got it for free'."

Whereas the world's largest video game and entertainment software retailer, GameStop, recognizes that used game sales have been a crucial component in their successful business model.

GameStop's CEO, Dan DeMatteo makes this point, "I think it creates contention not only for us, yes, but also for the consumer. Anything that limits the transferability of a game from consumer to a friend of theirs, to selling it on eBay, to exchanging it and trading it with one of their friends, or selling it back to GameStop -- is a bone of contention with the consumer."

Mr. DeMatteo makes a very good point. Aside from the enjoyment that a video game brings to its user, there's monetary value of the game itself.

Players have become accustomed to feeling that there's "residual value to their video games." A study identified this residual value of a purchased game to a consumer to approximately $20.

Like anything in a fair market economy, demand shoots up prices: trade-in rates increase with new video games sales. There has to be a way where everyone can play and win.


GameStop: Used Games Vital To Business


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