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[outunderthestars]

So what do you recommend in order to change this?

Have Gamestop share used game revenue with the publishers.

 

[Triple U]

Seems clear that without used games Gamestop would probably be in the red.

One can (and should) criticize their business practices, but if developers and publishers want to stop retailers like Gamestop from pushing used games they need to be incentivized better to selling new items instead of used.

Not that I think that there's an easy way to do that.

No, not really.

 

[DR3AM]

ebay, amazon, bb, and other plces sell used games too. how come you guys still shop over there? yes, gs sells most used games but thats thats their buisness model.

 

[CosmicQueso]

Have Gamestop share used game revenue with the publishers.

Unfortunately, they have no legal or moral obligation to do so. They purchase the game from a consumer and it becomes GameStop's property to then resell as they wish. No dev or pub has a leg to stand on asking for this.

GameStop's retort is that the money consumers get from used trade-ins most often goes directly towards new game purchases that the customer would otherwise likely be unable to afford. A difficult proposition to argue against.

I would take a slightly different approach to fixing this. I think that GameStop should reduce its % margin on used by offering higher trade in values to consumers. This would then, theoretically, increase the amount spent on new game purchases.

Doing this would increase spending on new while also incentivizing devs and publishers to compete for those dollars with even better products and services.

You can't blame GameStop for doing what they do because consumers obviously eat up whatever trade in value GameStop chooses to give them. Perhaps with more competition in the used space they will be forced to increase what they give consumers for trade ins. Maybe not. But it seems the most rational way to alleviate the negative effects of the current schemes.

 

[GQman2121]

It's the snake eating it's self.

On the tail you have all the used games that GameStop buys and sells. At the head you have new games that are being sold at GameStop.

People trade in their new game to buy a newer game. Gamestop sells a higher volume of games because gamers are not paying as much for the new game when they trade in an old one. Why does Gamestop get the best stuff? Because first week sales are generally the biggest sales week for a game's life. Front loading that week by using pre-orders is another incentive to get people to buy in the first week.

Spot on.

Everyone is guilty of trying to maximize profits. If publishers wanted to put the squeeze on GS they could very easily do so. But they're in bed with one another, so they take turns pointing the finger. Meanwhile, each are fueled solely on greed and it's the consumer who suffers.

 

[Mastperf]

I know better than to ask... but what you talkin bout willis?

The vast majority of pubs & devs understand it's a legitimate business but that it is inherently unfair. I haven't seen many comments saying consumers don't have the right to participate in the used market. However, the idea that there is all this revenue out there that could mean the difference between losing and making money for a dev and that they see not one cent from these used sales would make you worry too if your livelihood depended on it.

When you take all the emotional nonsense and hyperbole out of it the result is an opportunity cost (not unlike piracy). There is some percentage, however small, of people who buy used and who pirate that would have purchased the games new were those alternatives not available. This statement is not saying used is not legitimate or legal or unethical. It's just math. However, an opportunity cost does impact a business. Economics 101.

The sides who say "F GameStop" or "F the Pubs/Devs" really fail to see that each group needs the other to survive.

So, back to it, what do you mean by "they need to step up"?

Like i said, people don't care who takes their games for cash or trade so long as they think it's a fair deal. If they want some of the sales of used games then they need to get in the used games business. Regardless of the reasons, everything else they try to do is just gonna piss people off.
It's painfully obvious that there's a huge used market so why sit back and complain while someone else cashes in?

Have Gamestop share used game revenue with the publishers.

They would need to work out a deal with Gamestop to pay part of the cost of the trade in to be entitled to some of the profit. They can't get something for nothing.

 

[CosmicQueso]

Spot on.

Everyone is guilty of trying to maximize profits. If publishers wanted to put the squeeze on GS they could very easily do so. But they're in bed with one another, so they take turns pointing the finger. Meanwhile, each are fueled solely on greed and it's the consumer who suffers.

Saying it's greed is a little much, isn't it? People work hard on these things and want to be compensated for that work. I don't work hard in order to turn down a raise if I earned it. Neither should GameStop or the Pubs/Devs be accused of greed when they're just trying to make enough money to pay the people that work at these places and reward investors who give their money to fuel a company's success.

 

[CosmicQueso]

Like i said, people don't care who takes their games for cash or trade so long as they think it's a fair deal. If they want some of the sales of used games then they need to get in the used games business. Regardless of the reasons, everything else they try to do is just gonna piss people off.
It's painfully obvious that there's a huge used market so why sit back and complain while someone else cashes in?

Good point, but it's sticky, isn't it? A publisher going into direct competition with its #1 customer is a tough proposition. GameStop could just choose not to carry that publishers products, which would be disastrous. And any publisher simply doesn't have the breadth and depth of selection GameStop has, nevermind the power up rewards relationships GameStop has developed. And the consumer backlash... wow that would be something to see. No easy solutions, unfortunately.

 

[PsychoSoldier]

No, not really.

They made 1.2 billion in profit from used games but made 339 million as a company.

I'm not saying it's impossible without used games, but it's clear that without that additional income they wouldn't have made money last fiscal quarter.

 

[Mastperf]

Good point, but it's sticky, isn't it? A publisher going into direct competition with its #1 customer is a tough proposition. GameStop could just choose not to carry that publishers products, which would be disastrous. And any publisher simply doesn't have the breadth and depth of selection GameStop has, nevermind the power up rewards relationships GameStop has developed. And the consumer backlash... wow that would be something to see. No easy solutions, unfortunately.

I agree. I think the main issue is people/publishers complaining about used sales while giving no solution of their own and using Gamestop as their main means to sell their game. It's hard to sympathize with them when they turn around and give these companies exclusive preorder bonuses which gives consumers even more reason to trade in their used games to prebuy their next game. They're lashing out blindly while ignoring the fact that they're part of the problem.

 

[1-D_FTW]

So Gamestop wouldn't go out of business if they just sold new products or am I reading this wrong?

You're reading it wrong. They had a net profit of 339 million. That was based off a total of 2.152 billion profit. Which means their operating expenses were roughly 1.81 billion dollars.

You take away that 1.2 billion dollars profit from used games and they would have lost 600 million dollars after expenses. Looking at the absolutely abysmal profit margins on the new products, there is absolutely zero way they make that money up with new sales.

 

[jetjevons]

What really grinds my gears about GameStop is when I go to the store and request a NEW copy of a game and they RECOMMEND I buy a used copy for $5 less. I tell them I want a new copy and they actually argue with me. Its guaranteed to work sir. Why wouldn't you want to save 5$? Are you a moron, sir?

Fact is their practices are accelerating change in the industry. DD. Online passes. They're ultimately going to put themselves out of business.

 

[jetjevons]

Good point, but it's sticky, isn't it? A publisher going into direct competition with its #1 customer is a tough proposition. GameStop could just choose not to carry that publishers products, which would be disastrous. And any publisher simply doesn't have the breadth and depth of selection GameStop has, nevermind the power up rewards relationships GameStop has developed. And the consumer backlash... wow that would be something to see. No easy solutions, unfortunately.

Publishers should initiate a buy back plan themselves. Either more cash than GameStop is offering or even MORE in credit towards future titles from that pub. I'd love to see a number of Pubs get together and offer a system like this in conglomeration.

 

[2 Slice Toaster]

What really grinds my gears about GameStop is when I go to the store and request a NEW copy of a game and they RECOMMEND I buy a used copy for $5 less. I tell them I want a new copy and they actually argue with me. Its guaranteed to work sir. Why wouldn't you want to save 5$? Are you a moron, sir?

Fact is their practices are accelerating change in the industry. DD. Online passes. They're ultimately going to put themselves out of business.

10 dollars off with the card. Starts to look better.

 

[jetjevons]

10 dollars off with the card. Starts to look better.

Missing the point. I buy a new copy specifically to support the developer. I don't want a used copy period.

 

[GrandHarrier]

Gamestop is making a 47% margin on their products while pubs/devs get a whooping 0%. What is your point exactly?

Used games don't belong to developers. They belong to consumers, then Gamestop. You are allowed to sell your stuff that you own. It's called Capitalism.