Half of GameStop Profits Come from Pre-owned Sales
Apparently GameStop is doing really well this year, and half of that is because gamers prefer to buy pre-owned (read: cheaper) games. Who knew.
MCV reported that of all the profit GameStop dragged in from sales for the three months ending with October 2010, 47.5 percent is attributable to games they’ve bought back from players to resell. That’s $528 million in revenue and $250.2 million made from reselling used games at a discount — which makes sense when you consider the buyback rates GameStop gives, which are never more than half of what a used game costs you to buy.
Meanwhile, new games (like the stupidly high selling Call of Duty: Black Ops) garnered a profit of about $182 million (21.7 percent of total profits) for the company, and hardware was responsible for another $21 million (7.9 percent).
Profit from pre-0wned games went up by about $10 million in 2010 over last year, and GameStop saw record-breaking sales of a total of $1.9 billion — up from $1.83 billion last year.
Should the company thank us for selling their inventory back to them at a big apparent loss? I think so, especially since my eBay sales of games I’m done with lately have been abysmal.