Wednesday, January 21, 2009

Used Games Boost GameStop's Sales

GameStop's strong revenue growth (during a period of grim retail results) is not just a sign of the economic times--it's a nod to consumer behavior, especially that of young gamers who tire of favorite games and crave novelty. GameStop accepts old video games as trade-ins for new and used game purchases. This provides extensive inventory of used games for sale to bargain-hunters . . . and it fuels sales of all the retailer's games.

Amelia B, who's 11, recently mentioned GameStop to me when thinking out loud about saving her allowance to buy a game she wants. She doesn't care if the game is new or used--either way, it would be new to her. Saving money would be even better.

Of course, game marketers are not as thrilled because they don't make money on the resale of previously purchased games. Book publishers don't make money on the resale of used books, either. But that's the way of the future as consumers look for savings and make more of what they own.
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