Send News. Want a reply? Read this. More in the FAQ.   News Forum - All Forums - Mobile - PDA - RSS Headlines  RSS Headlines   Twitter  Twitter
Customize
User Settings
Styles:
LAN Parties
Upcoming one-time events:

Regularly scheduled events

GameStop Interested in Digital Resales

GameSpot has an interesting quote from GameStop CEO Paul Raines, who describes their interest in getting into the (currently nonexistent) market for selling pre-owned digital content. "Its very interesting," he said. "There are some technologies out there in Europe, and weve looked at a couple that are involved. Were interested; its not a meaningful business yet. Right now were not seeing that as a huge market, but I think were on the leading edge. There are a few companies, a few start-ups, out there that weve talked to that are doing this."

Post Comment
Enter the details of the comment you'd like to post in the boxes below and click the button at the bottom of the form.

32. Re: GameStop Interested in Digital Resales Jul 27, 2012, 08:05 Beamer
 
Car manufacturers actually LOVE the used car market:

1) It allows them to keep car prices very high, by catering mostly to those with a lot of money. They don't have to worry much about the very bottom of the segment, where margins would be slim.

2) It allows for leasing. You need to do something with those off-lease cars, and leasing is very profitable as it allows people to spend more on cars than they otherwise would.

3) It allows for certified re-owned, which keeps dealers flush with cash and very, very happy.

4) It allows buyers to rebuy frequently by selling their old car to someone without as much cash. Rather than having two sales, one with low margin, they get another higher margin sale. Also frequently people buy a better used brand than they could afford new, so someone that would be considering a Nissan buys an Infiniti, from an owner that goes out and buys another Infiniti.

5) It keeps raw material prices down. Cars have a ton of raw material. If cars were disposable, because when you were done with it you threw it away, raw material prices would go up with demand. Again, it damages margins.

6) Used cars and New cars are very different. Used cars smell funny. They have ambiguous issues. They can't be guaranteed in perfect condition. They often aren't warranteed. Things go wrong with them. They're objectively worse than new cars, plus there's a bit of a pride thing about buying a new car. All things being equal, people prefer new cars because they're different than used cars.




Not a single one of those arguments apply to games.
 
-------------
Music for the discerning:
http://www.deathwishinc.com
http://www.hydrahead.com
http://www.painkillerrecords.com
Reply Quote Edit Delete Report
 
Subject
Comment
     
 
      ;)   ;)   :(   :(   :o   :o   %)   %)   :)   :)   :|   :|   ;P   ;P   X|   X|   :D   :D   More
 
Login Email   Password Remember Me
If you have a signature set up, it will be automatically appended to your comment.
If you don't already have a Blue's News user account, you can sign up here.
Forgotten your password? Click here.
 
          Email me when this topic is updated.
 

Special Codes

  • b[bold text]b
  • i[italic text]i
  • u[underline text]u
  • -[strikethrough text]-
  • c[code text]c
  • +[bullet point]+
  • q[quote text (indented)]q
  • [quote="Author"]quote text (indented)[/quote]
  • [url=Link]text[/url]
  • r{red text}r
  • g{green text}g
  • b{blue text}b
  • m{maroon text}m
  • s{secret text (shows in the background colour)}s

Forum Rules

  1. Disagree all you want but attacks of a personal nature will not be tolerated.
  2. Ethnic slurs and homophobic language will not be tolerated.
  3. Do not post spam, links to warez sites, or instructions on how to obtain pirated software.
  4. Abusing the forums in any manner that could be construed as 'griefing' will not be tolerated.


footer

Blue's News logo