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Retail

GameStop believes next-gen consoles will not block pre-owned

GameStop believes next-gen consoles will not block pre-owned

Thu 22 Mar 2012 8:44pm GMT / 4:44pm EDT / 1:44pm PDT
BusinessRetail

GameStop confident that used-game market benefits industry, discusses strong publisher relationship

GameStop remains hopeful for the next-generation consoles, saying that they do not believe earlier reports concerning pre-owned bans would be possible. Talking during the quarterly earnings call, GameStop CEO Paul Raines said that publishers and manufacturers simply are not going to ignore the $1.2 billion in pre-owned sales generated each year.

"We think it's unlikely that there would be that next-gen console because the model simply hasn't been proven to work," said Raines of the rumored anti-used games feature. "Remember that used video games have a residual value. Remember that GameStop generates $1.2 billion of trade credits around the world with our used games model. So, consider taking used games out of that, you'd have to find new ways to sell the games, and our partners at the console companies have great relationships with us."

Raines commented that the business model is simply too good to pass up for the industry at large. While some might have their critiques on the used-games business, GameStop's model is opening up new games at a lower price point for many gamers, he said.

"What we've done is created a way for that new leading edge consumer to dispose of their old games and that's what creates this great circle of life we talk about that so many try to imitate."

5 Comments

David Radd Senior Editor, IndustryGamers

359 78 0.2
"that's what creates this great circle of life we talk about that so many try to imitate." Oh so that's how the industry needs to see it! The circle of life... why can't they get it around their heads that used games are benevolent. ;)

Posted:2 years ago

#1

Alfonso Sexto Lead Tester, Ubisoft Germany

822 654 0.8
Instead of "punishing somebody for buying a pre-owned game", they should use the formula of "remarding somebody for buying brand-new game" (Kingdoms of amalur, for example, gives you a good number of sidequest if you do so).

Also that pre-owned stuff... I cannot see any possible system that, once implemented, could tell the different between "a second hand game being used" and "someone brought that game to his/her friend's home".

First party better not touch my Beer & Games Friday...

Posted:2 years ago

#2

Dave Herod Senior Programmer, Codemasters

528 788 1.5
Well if they tied your purchased game to your xbox live account, you could take it round to your friends house as long as you signed into your own profile while you were there. In fact, you could probably even sign in as yourself and download the game there too, like with Steam.

Posted:2 years ago

#3

Mats Holm Technical Process Analyst, EA BioWare

55 50 0.9
Are publishers looking at the 1.2 billion in "used game credit" or Gamestops 9.47 billion annual revenue, where half is used games, and think: 1.2 billion vs 5 billion?

Posted:2 years ago

#4

Keldon Alleyne Handheld Developer, Avasopht Ltd

450 423 0.9
consider taking used games out of that, you'd have to find new ways to sell the games
Precisely, that is what so many fail to realize when they blame preowned for so many things. We must remember that behind every preowned game is a consumer who may not have purchased the game without the option of preowned.

For those guys who trade their games after two weeks or a month, what do we think would happen if we remove preowned from them? Would they still have bought those 10 or so games every year? Of course not! Would those same people have bought FIFA year on year? Probably a lot less! They'd most likely skip some iterations of those types of games.

Without preowned people are more likely to focus on specific games, taking less risk in venturing into new IP and having to decide between games rather than being able to have them all. Overall it will skew the distribution of purchases more towards the few big sellers and punish the less purchased titles. It could go either way for niche games. But with a higher involved market something has to lose out because the model is completely different with new economics.

Edited 1 times. Last edit by Keldon Alleyne on 25th March 2012 10:41am

Posted:2 years ago

#5

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