Many already know that high margins for retail game
stores are found in the buying and reselling of used games. A vice-president of marketing for Electronics Boutique was
quoted as saying, "Used games are keeping the entire ship afloat. EB and GameStop make basically no money from new
product." Online game mag, The Escapist writes: "The used game business works like this: A gamer shows up at
GameStop with a few games he's tired of and wants to trade in. GameStop offers him a lowball price - much lower than
what he'd get if he sold his games on eBay, just high enough to keep him in the store - and since he's already there
and wants the cash, he accepts it."The article continues: "Here's what's likely to emerge as the new business model: Publishers will release new titles exclusively in digital format at a premium price. Big box retailers will carry the most popular titles in physical form at a sellthrough price point. There'll be little margin left in used game sales, but it'll survive with pricing similar to your local Blockbuster's secondhand DVDs."
Last time we checked, the buy, sell, and trade of used (legal) goods works for nearly all stakeholders. If the product is good, the market almost always takes care of itself. Any readers out there have an opinion on the subject?
