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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."

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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.
 
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  1. Jul 26, 20:31 Re: GameStop Interested in Digital Resales Devinoch
  3. Jul 26, 20:44  Re: GameStop Interested in Digital Resales Bet
  4. Jul 26, 20:51   Re: GameStop Interested in Digital Resales JohnBirshire
  5. Jul 26, 20:53   Re: GameStop Interested in Digital Resales JohnBirshire
  7. Jul 26, 21:02    Re: GameStop Interested in Digital Resales Bet
  9. Jul 26, 21:08     Re: GameStop Interested in Digital Resales JohnBirshire
  11. Jul 26, 22:26      Re: GameStop Interested in Digital Resales Sepharo
  19. Jul 27, 01:04     Re: GameStop Interested in Digital Resales Kitkoan
  20. Jul 27, 01:08      Re: GameStop Interested in Digital Resales Bet
  21. Jul 27, 01:17       Re: GameStop Interested in Digital Resales Kitkoan
  22. Jul 27, 01:21        Re: GameStop Interested in Digital Resales Bet
>> 32. Jul 27, 08:05       Re: GameStop Interested in Digital Resales Beamer
  33. Jul 27, 08:14        Re: GameStop Interested in Digital Resales Armengar
  34. Jul 27, 08:54         Re: GameStop Interested in Digital Resales Verno
  36. Jul 27, 09:58          Re: GameStop Interested in Digital Resales HorrorScope
  14. Jul 26, 23:01    Re: GameStop Interested in Digital Resales Jerykk
  2. Jul 26, 20:44 Re: GameStop Interested in Digital Resales JohnBirshire
  6. Jul 26, 20:58 Re: GameStop Interested in Digital Resales TheEmissary
  8. Jul 26, 21:04  Re: GameStop Interested in Digital Resales JohnBirshire
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