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GameStop Brings New Meaning To Gross Profit


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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
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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?

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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.

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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.

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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.

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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.

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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.

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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 :)

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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.

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