Tag Archives: used games

I’ve seen this coming for a bit; game trade-in machines in Walmart. I think this could be more significant than plays like Amazon and TRU getting into used titles, and even than Best Buy (as they’re unlikely to be too wholehearted in such initiatives); because what this does is potentially provide visibility into pricing, and availability in a high traffic location that will be competitive with GameStop’s broad footprint. Neither the NCR machines nor the e-play technology that runs on them seem to work all that well, but perhaps NCR, which owns a big chunk of e-play may put some money into getting it all together. I think that the broader concept of trade-ins at Walmart is more interesting and important than the kiosk bit, but the kiosk probably makes it worthwhile for them to indulge in an activity outside of their core interest.

The shortcoming of not being integrated into the Walmart system for credits is likely a short term concession to publisher sensitivities, until Walmart can see if the project is worth the bother; they’re likely also looking at whether they want to get involved in this and/or other sorts of pawn-broker-y activities. The name frustratingly eludes me, but I know there’s a small chain of big boxes down south that focuses on re-selling small consumer electronics and media (games and music, I believe); they also have a cafe involved in the model. I really like that sort of combination, and it seems well suited to these times.

Kotaku, which is usually a sensible and practical bunch of folks, has fallen into a germaphobe mindset in which they proclaim it a scandal that GameStop allows employees to take new games home and return them as new. InsideTech weighs in with the concern that employees may steal single-use activation codes that will hobble the customer’s enjoyment of gameplay. -Well, since many games are already cracked open in order to place cases on the floor, I hardly think the latter matters. Read More »

I posted last week about the apparent entry of several retailers into the business of buying-in and selling used videogames, and someone very insightful in this area mentioned that it would be interesting to see whether someone trading in games at Amazon would put their credit back into new game purchases. He’s right, because this could be pivotal to next steps, if these retailers are successful. -GameStop’s argument is that buying-in pre-owned product is part of a healthy cycle driving new games sales, and generalist retailers getting involved in the model does sort of dilute that benefit.
Read More »

It seems to be getting an awful lot of press today that Toys R Us, Best Buy and Amazon are all buying-in used games for re-sale, and hence endangering GameStop’s revenue from this element, but:

Read More »

Last week, there was a pretty specific analysis of GameStop’s used game business in the WSJ (with the slightly annoying flaw that the writer seems to have conflated “gross” and “net” in the sentence emphasizing high gross margin on used games vs. single digit retail expectations).

I like the Gears of War 2 model that’s mentioned, of including in new games a single-use code for a map pack download with value approximate to the discount the user would get from buying the title new. This should be quite good for the publisher and the retailer. For the publisher, it simply feels fair, as the game that’s bought, played for a week, then sold back to GameStop has a value that’s slightly diminished, in proportion to the lower re-sale price of the used title. -The newer used title is still $5-$10 cheaper, but it’s diminished by $5-$10 worth of content. The publisher/developer still doesn’t make money on the used product sale, but this has to feel better for them than having the exact same title at retail, costing less and providing no revenue to them. Read More »

Dan DeMatteo is certainly correct in his assessment of used game buybacks supporting new games sales, and if every (or any) publisher were only a publisher, with no developer component, that would definitely get more traction with them. There are a couple of psychological issues that somewhat negate the value of his argument for publishers: Read More »