Analyst Says Amazon's Foray Into Used Games Won't Hurt GameStop


Posted March 17, 2009 - By r_pad

Amazon made some noise went it announced that it was getting into the used-games business. As GameStop has shown, there are billions of dollars to be made in selling used games. While it would seem that Amazon is hoping to get a cut of GameStop's business, one analyst believes that won't be the case. In an interview with Gamasutra, EEDAR's Jesse Divnich said:

"Amazon’s entry into the used gaming market will expand the used market into new territories and make available to new consumers rather than steal share away from GameStop’s core business. People are resistant to change. Those that wish to challenge current market leaders must offer a substantial value advantage in comparable scenarios to steal significant market share."

With the economic downturn hitting people's wallets, more and more gamers are looking for better deals, so Divnich's assertion that the used-games market will expand might be on the money. Quite a few readers of TheFeed noted that they prefer GameStop's instand gratification over Amazon's breadth of products. For the way I shop, it's totally worth it to use Amazon so that I can parlay my games into other things I need for my home. For other gamers, the value isn't there.

Since I have to change apartments soon, I might give Amazon's service a try. I have tons of PlayStation 2, Xbox, and GameCube games that I won't be able to play any time soon and in all likelihood will probably end up being available via digital download. Being able to turn my old games into a nice non-stick cookware set seems like a great idea to me. How about you guys? Have any of you tried out Amazon's used-game service? If so, what did you pick up with your credit?


Tags: Videogames
Analyst Says Amazon's Foray Into Used Games Won't Hurt GameStop


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