Sections

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."

Related stories

Take Two shares rise as Acti buyout rumours swirl

Analyst believes Hollywood beckons for gaming's biggest brands

By Dan Pearson

Take-Two loses $35.4 million in first quarter

That's almost half the loss of last year's Q1 as the publisher posted better than expected results [UPDATE: Evolve delayed, GTA V ships 34 million]

By James Brightman

Latest comments (1)

Tameem Antoniades Creative Director & Co-founder, Ninja Theory Ltd7 years ago
Anecdotally, every single developer and publisher i know of is quietly racing towards DLC to get around the second hand and rental issues. It seems retailers know their time is up and are more than happy to indiscriminately bite the hand that feeds it in the short term.

Unfortunate situation that will see many developers, publishers go under in the near term and many retailers and distributors in the long term.

0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.