Jdm Posted February 6, 2008 Share Posted February 6, 2008 GameStop Brings New Meaning To Gross Profit http://kotaku.com/assets/resources/2008/02/gamestopannualgrossprofit.jpg File this under the things you really didn't want to know category, right between the "yes, your parents had sex to make you" and "McDonalds cheeseburgers are half tofu, half insect protein" files. Next Generation has documented that GameStop makes loads of money by selling you used games. Shocking, we know. While GameStop sells more dollars in new software than used, their gross profits on resales are indisputably the $650 million lifeline of their business. Then again, all those consoles GameStop sells—that's basically charity work. Here's another graph showing you the breakdown even better: http://kotaku.com/assets/resources/2008/02/gamestopgrossmargin.jpg You see, even though GameStop sells roughly a billion dollars in consoles a year, they're not even making a tenth of that money up (directly) in profits, pulling in less than 10-cents on the dollar for the hassle. For new games that number jumps to 20-cents. But then, through some creative accounting in their buying back and reselling, GameStop makes an industry-dwarfing 50-cents of every dollar from resold games. As they say in France, that's curraazzzeeee. But as they say at the Gap (or any other clothing retail store), it's not that crazy. http://kotaku.com/352790/gamestop-brings-new-meaning-to-gross-profit Link to comment Share on other sites More sharing options...
Yoshi6107 Posted February 6, 2008 Share Posted February 6, 2008 Good god... This is why I sell my used games to friends and/or through eBay... Link to comment Share on other sites More sharing options...
Mr Arrow Posted February 6, 2008 Share Posted February 6, 2008 Good god... This is why I sell my used games to friends and/or through eBay... I don't understand your thinking. What's wrong with a company making a profit? Like it or not Gamestop offer a GREAT service to gamers, try it used for 7 days, it you don't like it return it, no questions asked. What could be better than that? Link to comment Share on other sites More sharing options...
Klister NL Posted February 6, 2008 Share Posted February 6, 2008 I think the thing is.. they make alot of money on resale of used stuff.. so one could ask if they couldn't give more money when you sell your old game, as they are making alot of money over our backs Link to comment Share on other sites More sharing options...
Creech Posted February 6, 2008 Share Posted February 6, 2008 They are not in business to give you freebies, they are in business to make money. Simple economics. If it bothers you to see companies be successful, go join the communist party or something...seriously. Link to comment Share on other sites More sharing options...
Shinsetsu Posted February 6, 2008 Share Posted February 6, 2008 The only reason I wont sell my games to them or anyone anymore, is I come to regret it months later when I get an urge to play it, and GS bought my game for 11 dollars and is selling it for 40 dollars. 300% mark up. But that's good business, but i'm keeping my games even if I DO regret owning GRAW. Link to comment Share on other sites More sharing options...
Yoshi6107 Posted February 6, 2008 Share Posted February 6, 2008 You guys have me all wrong, I just feel like I get too little trade-in value for my games when I go there. This is why I do. Link to comment Share on other sites More sharing options...
Vista Posted February 6, 2008 Share Posted February 6, 2008 You guys have me all wrong, I just feel like I get too little trade-in value for my games when I go there. This is why I do. Yep, thats how I feel. Yet I am too lazy to put stuff on eBay, plus the hassle, so I just sell it to them... Interesting on the used gaming profits though... Link to comment Share on other sites More sharing options...
HxS F4T4L1TY Posted February 6, 2008 Share Posted February 6, 2008 I used to work at a car dealer. Gamestop and used car dealers have a LOT in common. lol Link to comment Share on other sites More sharing options...
AlphaXGamerXDad Posted February 6, 2008 Share Posted February 6, 2008 They are not in business to give you freebies, they are in business to make money. Simple economics. If it bothers you to see companies be successful, go join the communist party or something...seriously. Perfectly put, sir. When we trade-in a game we want every last penny we can get. But when they have to resell it to make $$$ for their company, we want them to give it away. I really hope some of you aren't starting your own companies because they will not do well. With that said, I still choose not to trade-in games. Like someone already posted, I always want to play a game again after it's gone, but I sure as hell ain't buying it again. Link to comment Share on other sites More sharing options...
botafogo007 Posted February 6, 2008 Share Posted February 6, 2008 If it really bothers any of you to see Gamestop profit so much, go buy some stock, ticker symbol GME on the NYSE exchange. I've owned the stock for a couple years, and they can make all the money they want by me Link to comment Share on other sites More sharing options...
MadMartign Posted February 6, 2008 Share Posted February 6, 2008 I don't think it was any secret that you usually get ripped off when reselling old games back. I mean, if they have used copies of games that came out with 6 months or so, they are still 54 bucks.. why buy a used game for 54 bucks when you could just buy a new version for 5 dollars more? Plus, they give you less in real cash if you don't want store credit. Link to comment Share on other sites More sharing options...
Sanction Posted February 6, 2008 Share Posted February 6, 2008 What's the 'other' category? And they should start a rental service, with all those used games that just sit there and waste away in the bottomless pit of their drawers, they could at least rent em. Link to comment Share on other sites More sharing options...
JesusBread Posted February 6, 2008 Share Posted February 6, 2008 Wasn't GameStop at the brink of extinction a couple years back? But, good for them. Trade-in prices are a rip-off. Go trade your games to BlockBuster and abuse their trade-in prices. Link to comment Share on other sites More sharing options...
Sanction Posted February 6, 2008 Share Posted February 6, 2008 Wasn't GameStop at the brink of extinction a couple years back? But, good for them. Trade-in prices are a rip-off. Go trade your games to BlockBuster and abuse their trade-in prices. You can trade games in at Blockbuster? How much? Link to comment Share on other sites More sharing options...
badgerodoom Posted February 6, 2008 Share Posted February 6, 2008 I don't like it. Not because it's a profit, but because they don't give enough for the stuff they buy. They only give 150$ for used 360s now, probably sell them as "refurbished" for full price. It's just an unhonest way to do business, not cutting in the provider on a little of their 50cent profits. Link to comment Share on other sites More sharing options...
whitmania Posted February 7, 2008 Share Posted February 7, 2008 I don't think it was any secret that you usually get ripped off when reselling old games back. I mean, if they have used copies of games that came out with 6 months or so, they are still 54 bucks.. why buy a used game for 54 bucks when you could just buy a new version for 5 dollars more? Plus, they give you less in real cash if you don't want store credit. I feel the same way. I will never buy a used game from them. I try to grab games on sale by checking cag.com, (like DMC4 49.99) and trade them in towards new releases like gta4 or vegas 2. so atleast I save a little money on both ends. Link to comment Share on other sites More sharing options...
Tatanko Posted February 7, 2008 Share Posted February 7, 2008 I love Gamestop. I get stuff there used all the time really cheap. I see nothing wrong with any of this. Link to comment Share on other sites More sharing options...
Jdm Posted February 7, 2008 Author Share Posted February 7, 2008 I love Gamestop. I get stuff there used all the time really cheap. I see nothing wrong with any of this. I can't say I "love" them, but I do tend to purchase Pre-owned Games from them. I might as well since I signed up for the Edge Card. I never buy any New Games from them and I never Trade-In anything. Link to comment Share on other sites More sharing options...
Mr Arrow Posted February 7, 2008 Share Posted February 7, 2008 I don't like it. Not because it's a profit, but because they don't give enough for the stuff they buy. They only give 150$ for used 360s now, probably sell them as "refurbished" for full price. It's just an unhonest way to do business, not cutting in the provider on a little of their 50cent profits. You my friend need an economics lesson Link to comment Share on other sites More sharing options...
MajinFro Posted February 7, 2008 Share Posted February 7, 2008 You my friend need an economics lesson and a vocabulary lesson...unhonest? Link to comment Share on other sites More sharing options...
JesusBread Posted February 7, 2008 Share Posted February 7, 2008 You can trade games in at Blockbuster? How much? Usually double what gamestop gives. Hell, The Darkness is trading in for $22 at BB I think. BB gives store credit just like GS does. Link to comment Share on other sites More sharing options...
PerpetualHeaven Posted February 7, 2008 Share Posted February 7, 2008 Who trades their games in at Gamestop? Just keep the game is what I say. I'm not going to buy it if I don't plan on keeping it. Gamestop is a flipping GENIUS! I mean what's smarter then taking advantage of consumers need for money? Nothing! Buy a game for $5.00 and sell it for $45.00. Oh, 40 dollars profit. Link to comment Share on other sites More sharing options...
HiddenPandas Posted February 7, 2008 Share Posted February 7, 2008 For the most part, I use gamestop to find used obscure PS2 and Xbox titles that you can't find anywhere but online. Link to comment Share on other sites More sharing options...
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