GameStop: Game Trade-ins Accelerate Sales for New Games
The used games market has always been something of a problem for games publishers and developers as there is a certain belief that the respective market undervalues their work.
However, Bob McKenzie of GameStop has trashed such thoughts. He admits that used games are a very profitable part of GameStop's business, but there is a benefit for the publisher in what they call the "circle of life."
The reason being is that the trade-ins GameStop get help to drive and accelerate sales for new games as well. To quote:
Multiplayer: Sales of used games are a big part of GameStopís business. What do you say to people who say that selling used games undermines the value of the work done by publishers and developers?
McKenzie: The used games, as reported in our financials, are a very profitable part of our business. The major benefit, not only for us but for the publishers as well, is what we call a "circle of life." The trade-ins we get from used games help to drive and accelerate sales for new games as well.
Iíve got an eight-year-old boy whoís very much into gaming on all formats. [The used game trade-in option is] really neat. Itís not just teaching him some economic lessons hopefully at a young age but itís really about having a broader assortment of [older] games for my child to enjoy... They allow people to get into different games.
Thereís some emotion behind it from the publishers, but itís not like the music industry where you had Napster and you could rip the music off the Internet. Weíre pretty attuned to piracy issues and thatís not what this is about. Itís about extending the library of choices available to the consumer and making a value-added proposition for them to have a unique currency within our stores. More PlayStation 3 News...