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29. Re: Livingstone: Used Games Aug 20, 2009, 13:07 Verno
 
No, they're sore over GameStop's CEO making millions a year without contributing to the industry writing his check.
And no, they can't simply lower prices. This argument makes my head hurt. If they lower prices used games lower prices. Eventually they hit the point where they're not making enough and you see studios close and more contract work going out. Raising prices is actually a (slightly) better option, as you capture more money from the people that prefer to buy new. But getting into a price war against used games is a death spiral - they'll always be able to undercut you and people will continue going for that $5 savings.

Yeah precisely. Lowering prices solves nothing. The price isn't what makes Gamestop money. It's the percentage of that product's sale that goes directly into their pocket that makes it so profitable. Selling your games for $5 doesn't prevent Gamestop from doing so for $3 and still pocketing $2 profit. Doesn't sound like a lot of money but it's the scale that's important here, not the price itself.

This comment was edited on Aug 20, 2009, 13:08.
 
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