Gamestop = 50% Used Game Profits

[quidmonkey]

http://www.gamesetwatch.com/gross-profit-margin-2008.png (http://gamasutra.com/php-bin/news_index.php?story=23396)

[skwish]

yeah that is the breakdown of gamestops gross profit per dollar (total sales - cost of goods sold) but considering the crazy stupid markup they have on their used games it really is not expected to be any other way. and judging from the slim 6 cents on hardware i would assume the "other" category would be all new accessories, point cards, and random crap they sell.

[Suave Peanut]

I assume the 'other' includes unclaimed preorders. They push those things for a reason.

[Wolvie]

They are gonna hurt when games go digital distrubution. How can you pawn something downloaded to a HDD?

[Stoke]

They are gonna hurt when games go digital distrubution. How can you pawn something downloaded to a HDD?

With Goo. (http://www.joystiq.com/2009/03/30/gdc09-understanding-what-stardocks-goo-means-to-the-used-pc-ga/)

10chars

[Kelegacy]

yeah that is the breakdown of gamestops gross profit per dollar (total sales - cost of goods sold) but considering the crazy stupid markup they have on their used games it really is not expected to be any other way. and judging from the slim 6 cents on hardware i would assume the "other" category would be all new accessories, point cards, and random crap they sell.

Crazy markup is right. That's why I hate flippers--people that buy cheap games when on sale and then flip them for store credit at stores like Gamestop--since it means honest gamers who want to play a new game for cheap and were unable to score a copy at the latest Best Buy sale have Gamestop as an alternative...and have to pay 3 times as much as the sale price at Best Buy.

I have found Gamestop to be the most expensive place to buy games. Unless it's a really old game or a special sale on a used title, they suck. Circuit City (RIP), Best Buy and other non-specialty stores outdid them without trying. Especially with the bonus offers when buying a new game. I got a 1600 pt card w/my purchase of Gears 2 at Circuit City. I don't recall such a thing at Gamestop. If anything, they ARE nice enough to open the game for you half the time...when it's supposed to be sealed!

[Urizen]

Congrats to GameStop.

I think their practices are reprehensible but they've made themselves the unquestioned market leader in a very lucrative segment. Building the model so many years and really reaping benefits when disc-based media came into being was both lucky and smart.

Capitalism at its finest.

[jpublic]

I have found Gamestop to be the most expensive place to buy games. Unless it's a really old game or a special sale on a used title, they suck.

You've clearly never tried to find older/rare stuff. The local stores keep a pretty close eye on Ebay, and tend to price their stuff accordingly (example: $90 for a new SMT: Devil Summoner, while EB was selling it for $20, even if I had to get it sent to me from Toronto), and the large chains only really lower their prices when they do a massive sale (2 year old games for $20-30 more than EB).

Of course, living in SK, Canada like I do I'm in a very odd position - the big chains take forever to get anything (if they do at all) and the local non-chain stores are rip-off joints that only really seem like the best places to catch something nasty (have they never heard of cleaning?).

So for me, it's Amazon or EB all the time.