Take-Two frustrated by second hand sales
Company focusing on online solutions to fight lost sales
Take-Two has said that it is frustrated by the sale of second hand product through specialist chains such as GameStop.
The company is increasingly looking to online solutions to combat the loss of sales due to pre-owned goods, with the forthcoming release of Grand Theft Auto: The Lost and the Damned an example of breathing life back into an older game.
"GameStop continues to aggressively push their used game business, which is having a meaningful negative impact on sales of new games," noted analyst Doug Creutz, following a meeting with Take-Two CEO Ben Feder this week.
"Management is frustrated with this trend and is examining ways to ameliorate the problem, which includes strategies around online play and downloadable content which extend the lifespan of AAA titles."
Nintendo products are also high on Take-Two's agenda, with the company closely monitoring the performance of GTA: Chinatown Wars on the DS.
"The upcoming launch of Grand Theft Auto: Chinatown Wars for the DS will be an important test of Take-Two's ability to make inroads on Nintendo's wildly successful DS and Wii platforms," said Creutz
"Nintendo wants their platforms to appeal to all gamer segments (not just casual/family) and views Take-Two’s IP as an important driver of core gamer interest."