Pre-owned sales reach $2 billion at GameStop
Second hand stock accounted for 23 per cent of revenue in 2008
Sales of second hand games at GameStop are expected to reach USD 2 billion by the end of the January 31 fiscal year, or 23 per cent of revenue.
That's according to Pacific Crest Securities, reports the WSJ, showing an increase over the USD 1.6 billion pre-owned games generated the previous year.
For the nine weeks ended January 3, used games and console sales grew 32 per cent, compared to a 19 per cent growth of new product.
"Nobody else has that used-games draw," said Joseph Feldman of retail analyst Telsey Advisory Group.
"Once you have played a game awhile and it loses its value, GameStop is pretty much the only place where you can get something for it, and that's a big deal in this economy."
According to the report, approximately 42 per cent of GameStops' gross profits come from its second hand business.