[General Discussion] So, why is it that EB Games/Gamestop are so adamant about promoting used games?

After reading a few promotions going on for EB Games and Gamestop, why are they so adamant and eager about wanting to get your used games? I personally don't get games from the used section (hell I almost never looked on the used wall rack) unless I'm looking for a specific title that I have no hope of finding new. I think trading in games is basically losing out on the value you've paid for it. I would only trade in games that I thought was so bad and just wanted to get something out of it for nothing.
However, that is a rare occassion.

For example, there's the promotion for trading in 10 games for a $50 credit. Now think about that. If you did pay full price of $50 per game for 10 games, it'd be $500 that you'd have spent for those games, and now you're only getting only 10% of it's value back in store credit. It should be obvious (from what I'm seeing so far) that it's a rip off if you want to trade in 10 of your games for lets say a Wii or a PS3 preorder. Perhaps the mentality from the retailers' viewpoint is that, well, since you're "upgrading" to the next generation of gaming, why still keep your old games? If this is the case, then why bother with the backwards compatibility for your older generation games?

So if these specified retails are going to such lengths to get your used games, I'm guessing there's a pretty big demand for used games by a few gamers? Note that the topic for this thread is for why EB Games wants your used games, not if you think you would personally prefer used games over new games. It's more less just a question thread, and will be closed when appropriate.

Thanks!

How ya doing, buddy?

I believe they make extra profit when they sell used games. That's the best I can understand it as.

And, yes I will buy used and have done so before. I do prefer new however.

There's nowhere I can't reach.

Originally Posted by Spatula

After reading a few promotions going on for EB Games and Gamestop, why are they so adamant and eager about wanting to get your used games? I personally don't get games from the used section (hell I almost never looked on the used wall rack) unless I'm looking for a specific title that I have no hope of finding new. I think trading in games is basically losing out on the value you've paid for it. I would only trade in games that I thought was so bad and just wanted to get something out of it for nothing.
However, that is a rare occassion.

For example, there's the promotion for trading in 10 games for a $50 credit. Now think about that. If you did pay full price of $50 per game for 10 games, it'd be $500 that you'd have spent for those games, and now you're only getting only 10% of it's value back in store credit. It should be obvious (from what I'm seeing so far) that it's a rip off if you want to trade in 10 of your games for lets say a Wii or a PS3 preorder. Perhaps the mentality from the retailers' viewpoint is that, well, since you're "upgrading" to the next generation of gaming, why still keep your old games? If this is the case, then why bother with the backwards compatibility for your older generation games?

So if these specified retails are going to such lengths to get your used games, I'm guessing there's a pretty big demand for used games by a few gamers? Note that the topic for this thread is for why EB Games wants your used games, not if you think you would personally prefer used games over new games. It's more less just a question thread, and will be closed when appropriate.

Thanks!

Well, that's something like 90% profit for them. Of course they're going to want and want to sell used games. It seems like since the merger, though, they've been a lot more focused on giving you less than your money's worth.

This thing is sticky, and I don't like it. I don't appreciate it.

It's true that they'll give you store credit (which doesn't hurt their financial cash flow) for let's say $10 worth of merchandise, then put the price tag for probably 200%, to put the used game back on the shelf for $20, and therefore not have to worry about manufacturer costs nor shipping/logistics costs that is accustomed with new titles, however, I'm very surprised that people are willing to trade in such huge quantities of used games and get little in return. I mean, from the campaigning I'm seeing with all the posters "GET 10 FREE DOWNLOADABLE SONGS WITH EVERY TRADE IN", it's either they've tapped into this "used games" market without having to suffer any real cash flow hinderances, or that people aren't trading games in so much these days and they want to push that used games market up again.

Also note for Canadian EB Games, customers only get store credit with trade-ins, no cash.

How ya doing, buddy?

Games stores want your used games because the profit margin is much, much larger on them. It's that simple. They don't pay an awfully large amount when people bring in games to trade, and what they do pay is often in store credit rather than cash. They then mark up the popular games quite a bit, as you can plainly see. Just check the shelf price for a used title, then ask a store clerk what he would give you in trade for that same title.

I don't trade games unless they suck really, really badly. I agree with you that it is a pretty poor deal that you will get. I certainly don't object to taking advantage of what I see as the poor judgement of others, though. I want more games than I can reasonably afford at full price, so I get what I can new, and buy the rest used. Either people don't mind shitty deals, or they just don't like the same games as I do. My taste is a long way from the mainstream, after all.

I don't mind buying used. I buy about one used game for every new game I buy at the moment. However, the local stores only accept used games if they are in good condition, and I will never buy a game that doesn't look good. It doesn't have to look new, but if it is missing the manual, or if the box art is badly marked or damaged, then that's a dealbreaker.

I was speaking idiomatically.

I mean, hell, if I see a used Valkyrie Profile 1, Lunar 1, Phoenix Wright, or even a Disgaea 1, I wouldn't mind getting those used. But at the same token, the retailer would probably recognize the difficulty of getting those games and jack up the price accordingly. But this is for another thread for another time.

Yeah, I already knew about the profit margin, but I was wondering if the whole "used game" was actually quite lucrative in practice, since it requires the consumers willingness to part with their used games and receive so little back. So either they're really ramping up on their promotions because:

1) Retailers are capitalising on gamers who are idiots and will trade in hundreds of dollars worth of games for a fraction for store credit, which really is the gamers loss and I couldn't be bothered that they didn't do some very simple homework.

2) The "used games" is really losing it's appeal and the retailer wants to get vocal about it and starts plastering posters EVERYWHERE to draw the consumers attention back at the whole "used game" market.

Also, Where's JagSouth when you need him.

What kind of toxic man-thing is happening now?

The funny thing is they must not sell that many used games because everytime I visit my local EB the store is swimming in used stock. Moving around at times is like traversing an obstacle course. Okay I want to go to PS2 section. EB employee stop watch in hand: "Fastest time to reach the PS2 rack this week is 3:09. GO!"

I very rarely purchase used games unless they pass all my stringent tests:

1) Is the box in mint condition? Are there marks of any kind? Is the cover sleeve torn?

2) Is the manual in mint condition? Are the pages torn, folded, bent? Are there ketchup stains on the pages? Are there any markings of any kind? Did someone decide to write "I <3 Sephiroth" or some equally retarded comments?

3) Is the disc in mint condition? MINT?

4) Is it worth it? This used copy sells for $44.99 the new one goes for $49.99 (tough decision here).

5) Did these 4 tests pass? If so, I'll probably still buy the new copy just because unless the savings are truly enough to warrant buying used. $20+ in savings.

FELIPE NO

A Bright Spot in the Dim Video Game Picture

Old NY Times article on the subject, the most relevant bit being:

Quote:

Meanwhile, the used games business does not sound exciting until you look at the numbers. GameStop, which recently acquired Electronics Boutique to become the No. 2 video game retailer behind Wal-Mart, has made used games one of its pillars and that is a big reason its shares are up 89 percent since the beginning of last year; Electronic Arts shares are down 11 percent over the period.

Over all, GameStop appears on track to generate about $3 billion in revenue this year. Of that, it looks like $800 million to $1 billion will come from the sale of used software, hardware and accessories. Just how profitable that segment is has only recently become clear to investors.

The quarter that ended in October was the most recent with GameStop results and was the first in which the company broke out results for its used segment. They were eye-popping. Used products made up almost 32 percent of the company's total retail sales and almost 44 percent of gross profit. Even more impressive, while GameStop's gross profit margin on new hardware sales in the quarter was less than 11 percent, and on new software less than 25 percent, the company generated a whopping 45 percent profit margin in its used segment.

Also, my friend who currently works at a GameStop says reserves aside, few at the local branch actually buy 360 stuff new, they just wait until it goes used and buy it at $50.

So, all told, I don't think the "give us your games!" crunch is because of hard times, they just want a really good fourth quarter.

What, you don't want my bikini-clad body?

Thanks for that. Good, now at least I have a little bit more concrete understanding with the motives of the forceful used game business strategy.

Jam it back in, in the dark.