quote:you are just looking a gross sales. You have to figure in the inventory cost to GS for used games. Developers have no inventory/carry costs so their profit margin (net) will look a lot better than GS in this scenario.
I got curious after having a discussion a few weeks back with a coworker about used games and Gamestop's profiteering off of a developer's hard work.
Gears of War for example, sold 6 million copies brand new. The game retailed for $60. The likely breakdown in the sales were $10 to retailers, $25 to publisher (Microsoft) and $25 to Epic.
So Epic banked $150 million off of the game.
If gamestop sold 3 million of those copies, they made $30 million in sales.
Lets say that 1/3 (For easy math's sake) of the games get traded in, and resold at $55 used, gamestop makes another $110,000,000 from resales of used games and have now actually made more money from the game than the actual developers.
The reality of it is that more than 1/3 of those 6 million copies was likely trade in and resold.
Anyway, thats my outlook on used games and was curious who bought what and why.
quote:Really, you must have zero business experience/exposure outside flipping burgers. I can't believe in this digital download age, GS is still willing to invest in this relatively dead inventory.
I used gears of war specifically in my argument with my co-worker because it was a $55 used title for almost 9 months after it was released and a $59.99 new title for just as long.
do you go for the new copy for $40 or the used copy for $35
I use Gamefly so I guess I'm not helping the industry either.