Extensive overview of GameStop reveals rising profits, world domination plans
by Ben Gilbert 
{ Apr 29th 2009 at 10:00PM }
And how much is the company making, on the dollar, for each dollar they invest in the used game market? According to the analysis, GameStop is making 48 cents on every 100 spent in the used games trade -- a nearly 50% profit margin on a service that accounts for "22 percent to 28 percent of GameStop's revenue."
Though GameStop's plans for world domination weren't explicitly spelled out in the 10-K, we expect to hear more about them in the coming months. Alright, alright -- fine, you got us. GameStop isn't planning global domination ... yet.
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Reader Comments (Page 1 of 1)
whazam1337 @ Apr 29th 2009 10:03PM
"between 41 and 46 percent" of the company's gross profits are coming from used game sales alone.
Due to the fact that they give you 15 bucks for the game you want to trade in and then sell it for 40-50
Ebay ppl ebay!!!
Saikisen @ Apr 29th 2009 10:08PM
I dont buy used games unless I can't find the game at all.
But selling? I'd rather buy a used game at gamestop than sell or trade it in, either way its a rip off.
pibs @ Apr 29th 2009 10:18PM
Invest in Gamefly and you won't have to worry about trading in or Lamestop ever again.
whazam1337 @ Apr 29th 2009 11:28PM
Gamefly is a waste too dude. I get games that I know are going to do good Ex. Re5.cod.killzone. and so on and when dlc comes out what are u going to do buy it and then just trade the game back for another one later on having wasted money on dlc.. unless u dont game online that is... then i would see the point.
whazam1337 @ Apr 29th 2009 11:30PM
You people dont understand the point i was trying to make im saying thats why they are making a a$$ load of profit. Simply that and telling people that they should use ebay to make more money for themselves instead of trade it to gamestop. Lamestop?? idk why your saying that i get all my new released games/ pre orders there kuz its right down the road from me and get used games there if i dont want to buy brand new copy of a game that just came out that would be 65 bucks i can get it for 50 ( if they have it ).
Im simply saying if you want to sell your games just go to ebay and if you want to buy used games go to gamestop if you cant find it cheaper online. Although i just picked up 4 brand spankin new games ( Blitz 2, Quake wars, 007, and soul cal 4 ) for $40 kuz they were having a deal at best buy that i think is still going on untill either friday or sunday.
Antagonist @ Apr 30th 2009 9:10AM
Why in the hell would anybody would purchase DLC for a game they didn't intend to keep? Doing something like that requires more cranial density than the good Lord saw fit to bless me with.
ilgoat @ Apr 29th 2009 10:12PM
The margins on used games are insane. That's why people should be using sites like commuto.com or goozex to trade their games and get full value back. Why allow these crooks to give you 20 cents on the dollar when you can get par?
Ranelar @ Apr 29th 2009 10:10PM
Amazon should just completely undercut them... They could do it and still turn a great profit. The only reason it hasn't happened is because of a wink and nudge between competitors keeping the prices the way they are.
JDHexen @ Apr 29th 2009 10:15PM
Well all games I buy are new and I like to keep the games so I am glad I am in that 46 percent.
Gamestop sucks @ Apr 29th 2009 10:15PM
And yet they only give stores 80 hours a week to function. Shittiest company ever
JDHexen @ Apr 29th 2009 10:21PM
I gotta complement you on your user name it's very true and it fits this story.
tmacairjordan87 @ Apr 29th 2009 10:20PM
If it wasn't for the 50% discount I get on used games there (up to a maximum of 3 games at a time though) I probably wouldn't buy that many used games from gamestop, as Amazon is usually cheaper without factoring in the discount.
kiefer @ Apr 29th 2009 10:31PM
I would love to know how you get half off your used games. I know it's not through employee discount, so you must be doing something shady.
tmacairjordan87 @ Apr 29th 2009 10:37PM
Nope, everytime I know ahead of time I'm going to buy a game (big releases like Uncharted 2 or something like that) I preorder the full $60. So they have that $60 collecting interest for all that time. Also, the manager there is a really nice guy and he gives me that discount on the side for all the help I give them. I don't buy that many used games to begin with since I'm not rolling in money, so it doesn't really attract any attention.
THE Ezio Auditore de Firenze (PSN slycooper_rocker) @ Apr 29th 2009 10:45PM
haha i just go there and play the charm card. the employees are usually insanely nice there. like when i was looking for the official ps3 headset, i couldn't find any standalone ones. so i went to best buy which is like a minute away from my house.
they refused to sell it to me cause i'm under 17. they said i couldn't give the money to my mom so i had to leave and give it to her and have her go back in and buy it. i said fuck you and went to gamestop. they gave me a nice discount and sold it to me. and if i go there and buy something, they'll give me one of each of all the preorder bonuses they have at the moment. :D
they're not THAT evil, haha...
THE Ezio Auditore de Firenze (PSN slycooper_rocker) @ Apr 29th 2009 10:45PM
uh... by 'it' i mean the socom confrontation - headset bundle...
M@sterShake @ Apr 29th 2009 10:46PM
Look children, I work for Gamestop... Yes they are stingy, if you honestly think any large retail chain cares about you then you are an idiot...
If you're trying to sell 1 or 2 single new release games that you (like an idiot) bought before playing some kind of demo and didn't like, then yes Amazon.com is probably going to get you somewhere between 15-20 more dollars...
If you're selling some games that aren't in like-new condition in bulk then Gamestop takes the cake easily... This Xmas season I saw tons of little kids come in with their stacks of old crappy-condition games and walk away with 100+ dollars in store credit... Can Amazon do that for you? Didn't think so...
Let's use our brains here before we make outlandish comments... And as Tmac above stated, if you actually possess social skills and befriend Gamestop employees, you better believe we'll hook you up, I hook up some cool frequents in my store alllll the time.. Give em free reserves, discounts, hold games I'm not supposed to, etc.
It's called interpersonal relations, you should give it a try, something your beloved website retailers don't have.. ya know, flesh and blood sales people with personalities
WiredKnight @ Apr 29th 2009 11:17PM
There's a difference between being stingy and taking advantage of people.
Maybe it's just the ones where I live, but all the employees at GS I've seen have been complete tools.
Anyone with a little patience can get more money for used games on Amazon. And admit it, the "little kids" don't care how much they get for that stack of games, they probably didn't even buy those games themselves anyway.
fwacce @ Apr 29th 2009 11:34PM
If I go anywhere with 'stacks' of games and only get $100, that's a ripoff. Just because little kids don't care how much of a loss it is for them, that doesn't make it right. Every single game can be sold for more online than you give in credit. Every. One.
And the fact that you may 'help' people who kiss your ass by giving them a pre-order bonus or hold a game for them, doesn't make up for the fact that you rape them every other day.
I know you're just an employee and don't make the rules, but don't come in here and act like we should be praising GS and thanking employees for ripping us off.
Astral Drmz @ Apr 29th 2009 11:11PM
ALL HAIL SCROOGE MCDUCK!
whazam1337 @ Apr 29th 2009 11:36PM
wrong. your getting whited out within the next few hours
Markez @ Apr 30th 2009 1:39AM
I'll never forget Doofus Drake, and his sidekick, Super Doo... *sniffle*
http://users.cwnet.com/xephyr/rich/dzone/hoozoo/doofus.html
Robert @ Apr 29th 2009 11:21PM
I don't know if this has been mentioned yet, but the raw numbers need a little context (do with them whatever you want): The margin on new games is small, during the PS2/XBOX/Gamecube era I know it was roughly $7 profit on a $50 game. The price of new is set by the publisher, and the price of a game near it's time of launch is a matter of contractual obligation.
The margin on used games is much larger, the difference between the trade-in price and the used sale price.
IMO, if you are selling your games back, and feel that Gamestop is not giving you fair value for your title, do not agree to trade it in. Market economics. The price is not negotiable, but you are not required to sell it to them. One tip is to simply find out the used price they are selling, and sell your game yourself (ebay, amazon, etc). The only reason their used business model is attractive is because those who trade in will take a hit on their trade in rather than find another secondary market to sell to.
Also, if companies did not want Gamestop to sell their games used, they could change it: make it illegal to sell the game, essentially make it like some PC titles are (Gamestop has never been in the used pc business, this is one reason why). Unfortunately, this would probably also make it illegal for you to sell the game yourself, since you would never have that right on purchase.
xtina @ Apr 29th 2009 11:28PM
gamestop employees are cool, but the company sucks.
all the people i know who works/worked for gamestop hates the company. they only stick around for the free swags(employees get first dips on reservation promotion), discounts and the game checkout (mostly for the game checkout).
oh and do i mention employees gets only a 25 cent max raise per year?
exactly.
Anticrawl @ Apr 30th 2009 12:29AM
Any business, especially pawn shops, that deal in the purchase/resale/pawn/payday loans thrive in an economic recession. Gamestop is no exception.
Markez @ Apr 30th 2009 1:40AM
Hey hey hey now. You're supposed to be riding the wave of popular opinion and curse GameStop for screwing people over and taking advantage of them, despite having perfectly legal and acceptable business practices. Shame on you.
Anticrawl @ Apr 30th 2009 1:45AM
@Markez
I agree. How dare I share a factual statement rather than join the hate bandwagon and spout off angry rhetoric because I'm not the one capitalizing and making the money.
Shame on me, I’m going to put myself in the corner.
Anticrawl @ Apr 30th 2009 1:49AM
@Markez
Oh and are you on my list for PSN or Xbox Live? Cause we should game sometime.
Anticrawl @ Apr 30th 2009 1:57AM
I still use GameStop for many of my gaming purchases, especially when I want to secure a special edition or plan to buy it at midnight or day one. I just don't buy/sell used games there because I am not a moron. And yes I am well aware of them selling games resealed at new retail prices, but it's simple to tell if the box has been tampered with. I also don’t understand the hate towards their moronic employees. Sure generally they are morons, but if you have to ask their employees for gaming info then well… no one can help you.
Markez @ Apr 30th 2009 12:52PM
On Live. I'm game. Girlfriend's folks have been staying with us here while they've been visiting for the last week and are leaving today, so I'll likely be gaming this weekend. I'm thinking/hoping to finally get immersed into Fallout 3 beyond the 2-3 measly hours I've put into it. Dunno if that'll happen or not, we'll see!
Kino @ Apr 30th 2009 2:07AM
God forbid a company make a damn profit, right? OUR ECONOMY SHOULD ALWAYS STAY IN THE CRAPPER LOL!
datniceguy @ Apr 30th 2009 12:36PM
/concur. What's that timeless axiom? "Don't hate the player, hate the game."
Haha, as far as I know, as long as you can find the sucker and make money off of them, then congratulations you've won the American dream.
Look, it works for some people and others are much smarter to it. Don't hate, appreciate. It's a dog eat dog world, and someone's gonna be the proverbial fish at the table.
johnny @ Apr 30th 2009 7:39AM
People are stupid as dirt to sell games to gamestop, guess thats how bush got elected twice. I can sell a barely used game on ebay for $40 or more and gamestop would give me $15 at most for it, maybe $20. And people are actually going for it?? wow, not sure if money is important to these people or if they are just that DUMB
emagius @ Apr 30th 2009 11:03AM
Many people would trade a few bucks for the time and convenience savings that GameStop provides. What makes economic sense for you does not make economic sense for others.
Tiptron @ Apr 30th 2009 8:57AM
I think its so interesting people make it out like Gamestop are the biggest criminals ever.
But the fact is they make 50% of the PROFIT of the business from 22 - 28% of the REVENUE.
The fact of the matter is without the used game market Gamestop would hardly be making any money at all, because the cut they get on new games sales/accessories which accounts for 80% of the business doesn't even make half the profit of the business. Its just god damn COMMON SENSE they focus on the used game market.
Now instead of looking at this from the irrational point of view, if you were the CEO of Gamestop what would you do.
Sell more of new games where the prices are set and your cut is non negotiable or....
Focus on used game market where essentially you can make the same amount of money you would make selling on new games without having to sell the same amount of titles, which takes up store shelf/inventory...
Gamestop is not forced on anyone and they are not the only competitor in the market. Its a free economy. The fact that you feel they don't give you value for your tradeins is not there problem since they never force you to except what they offer, and they are not your only options. Fact is Gamestop provide a service which helps to keep/make jobs,bring in taxes and help the economy.
whazam1337 @ Apr 30th 2009 9:26AM
"Why in the hell would anybody would purchase DLC"
A real point dexter lolz