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GameStop's CEO Defends Game Resale Market

In these tough economic times, buying used games and trading in old titles for store credit or cash have become common methods of saving a few hard-earned bucks. Speaking to Gamasutra, GameStop CEO Dan DeMatteo says limiting these options creates "a bone of contention with the consumer," adding that each consumer believes a game purchase holds a "residual value" of $20, a figure revealed in a study conducted for a book on Micromania, a French videogame retailer recently acquired by GameStop.

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TheHater3188d ago

Gamestop makes more money for use games than they do for unusably games. The give you $20 dollars for a use copy of a new game, and sell it back for $55 plus tax. That $30+ dollar profit.

thebudgetgamer3188d ago

but everything you buy there is a used alternative why would games be different. thats like ford saying we dont like used car dealerships cause they cut into our profits

:)

MAR-TYR-DOM3188d ago (Edited 3188d ago )

defend?
Did you guys know that Bestbuy/Futureshop tried to buy Ebgames/gamestop? Gamestop refused and now futureshop is buying used games for more money, sending them back to a packaging facility (which they bought as well) and reselling them for full price. All done to make gamestop get out of business.

So you guys will ask why people would bring there games into futureshop?
-Well they will give you more money
-They will give you store credit so you dont have to buy another video game, you can buy whatever you want from the store
- Futureshop store credit more valuable than gamestop/ebgames.
Heres the link
http://www.futureshop.ca/ma...

PS i personally dont support the used video game market, thats why i buy my games from wal mart or toys r us.

fan_of_gaming3188d ago

he is absolutely correct. I work at Futureshop and we do give better value on trade-ins than EB generally. However, it is still a work-in-progress and currently some of our used games cost more than the new copies :S

Elimin83187d ago

I am not against gamestop or any other games store buying and selling used games, I just don't like paying $60. for a game beat it in one or 2 days sell it back for $15-20 only for them to sell it for $5 less than the new one, that to me bites..... why can't they give you $30.. someone else will pay the same price you did and realize wait, thats why who ever bought this sold it back.. They then repeat the process and still sell that same used game $5 bucks less than the new one........

f7897903187d ago (Edited 3187d ago )

If you buy and sell a game within a week of its release your going to get $40 out of the $60 you spent back minimum. Oh wait and if you buy on ebay you can get it for cheaper than gamestop used games. And since you have to use paypal you can easily reverse the payment if you dont get your game (which really never happens since the seller wants their money.)

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DiabloRising3188d ago (Edited 3188d ago )

Hahah, give you $20 for a used game? Have you been to a Gamestop lately? Most are sub $20. Then they turn around and sell it for upwards of $54.99. MvC2 for PS2 is sold by them for upwards of $80.

No offense, but as long as people use this convenience as a reason to get financially raped, Gamestop will keep on raping you.

I refuse to sell back any of my games via those stores. Period.

It's also amusingly pathetic that THIS is the kind of topic people SHOULD be discussing as gamers... but fanboys and trolls are too busy having their 360/PS3 pissing matches to comment on the stories that matter.

N4G.. wretched hive of scum and villainy.

The gaming GOD3188d ago

Worthwhile stories get no attention. Instead everyone wants to post flamebait, most of which come from opinionated blogs with next to zero credibility.

chanto233188d ago (Edited 3188d ago )

if you trade in a game is cause you know you dont play it anymore...

or would you rather pay 60$ plus tax for a game and then play it for a week and let it collect dust??

@Below: i know is a rape but i own a gaming store and trading in is what gives you profit...did you know that new consoles are sold with a loss at any retail?? and that you can only get a profit of about 6$ for each game sold?? If it wasn't for trade-in retailers like Gamestop would've been out of business long ago...specially with a big share of the market renting games. If it was up to me...i would prohibit game renting around the world...

DiabloRising3188d ago

Personally... I'll RENT a game if I'm only going to need a week with it.

Why buy a game, then waste $40 when you trade it in for $20 or less?

The gaming GOD3188d ago

If you feel you're going to keep a game for such a short period of time. Then renting is the best choice.

Why BUY a game knowing you'll be rid of it in a week or so. Then turn around and sell it for $20 bucks. That's you losing $40 or more plus tax when you could have simply rented the game for 5 bucks and had it for the same length of time.

DiabloRising3188d ago

@ Chanto - I realize a balance is needed, and you need to stay in business. Either stores need to start giving more $ and stop raping customers, or they need to cut the devs in on some profits.

@ God - Yeah. This site is truly sad. I love the concept, it gathers news. But all I see lately is fanboys pissing in each other's cereal, and the mods do nothing. Pretty damn pathetic. I don't know what's worse, that they aren't modded, or that this is what "gamers" have become... nothing more than corporate mouthpieces without brains or opinions of their own.

RememberThe3573188d ago

Yep.

I GameFly, most of my games. If the game it good but is long I'll usually buy it or if the game a really good online play I'll usually pick that up aswell.

However, most of the time I can get through a game fairly quickly, with in a week of so, so i don't fell the need to pick it up.

Fable 2 and Grea2 are great examples. I got through both in about a week(Gears took about 2 day and Fable took about 4). I sent those back and now I got Left 4 Dead and Mirror's Edge on the way.

Saves a lot of money.

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MidnightProwler3188d ago

I haven't been to Gamestop since April. I'd say you'd probably get more money for used games on eBay.

RememberThe3573188d ago

The last time I went to GameStop was to renew my GameInformer subscription.

Reibooi3188d ago

I love how they keep trying to defend used games sales but here is the bottom line. Even if used sales are not hurting the Devs as they think they are used games still hurt them. Devs would make more money if everyone bought new games and in a time when the cost of development is so high this is a big issue. Either Gamestop needs to find a way for the devs to get in on the used game market or they need to stop selling used games. Considering stopping the sale of used games is impossible I would suggest they work with the devs and figure something out. You know depending on the game I really wouldn't be surprised if Gamestop made more then the devs did.

DiabloRising3188d ago

They do. Used games are 100% profit to Gamestop. It's disgusting. You're right, you can't stop them, but you can get the devs in on it, which is only right.

RememberThe3573188d ago

Most of the time the publishers own the rights to the games. If anything the publishers would be getting royalty's not the devs. However, the devs get paid through the publishers, and I'm sure that the independent devs would get a cut from the publishers as well. Otherwise there would be some pissed of developers.

Lumbo3187d ago

Naturally the publisher is the first to get money, but the devs are participating on the sales numbers and rental royalties.

DaSaintFan3187d ago

So why should game developers?

Buy a used car.. Ford, Toyota, GM.. don't get a cut of the money.
Buy a used appliance.. Maytag, Sears, whirlpool... get NO cut.
Buy a used computer... nobody from Dell, Gateway, Apple...etc.

So why should Valve, EA, etc be any different? And you don't think those other used-dealers don't mark up their products to get the most money THEY can get? Why are we wanting to punish a business for doing what any other 2nd-hand dealer business does?

If they can't make games affordable for the average joe, and Gamestop/GC/EB does... TOUGH for EA and company. If they're losing that much money, close shop and don't put out any games for the public.

If you don't like what GS/GC/EB etc gives you in trade-in value, then don't trade it in. Heck, i have tons of games I don't play that much anymore, but I have never traded them in, simply because I didn't like the offer the used-game dealerships would have given me.

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