GameStop 'Doesn't Like' Being in the Used Game Business

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chatgirl4

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Many gamers have griped about GameStop's lucrative used games program. Now a company spokesperson has claimed they don't even like the program themselves, but it was necessary to survive in the marketplace. GamesIndustry.biz reports that Niall Lawlor spoke at the Develop conference, and called out InstantAction CEO Louis Castle regarding digitial distribution. Castle had made remarks earlier in the year calling GameStop's used model "parasitic," and compared it to "thievery."
"We discovered the used business was a way of preserving our margins," Lawlor said. "We don't like being in the used business, it's very difficult to manage. If we hadn't got the used business, we wouldn't be there." Lawlor added that GameStop "evangelizes" for the industry by its existence. "We have to be in it, otherwise if you take a look at our margins you'd realize we need to be in used." Castle maintains that the used business is accelerating the death of retail and the decline in publisher profitability.

It's hard not to notice that GameStop isn't just surviving thanks to used games -- it's thriving. The industry itself has seen month after month of declining sales in the past year, while GameStop's revenues have steadily climbed. Perhaps the used market was a necessary move to stay in business, but most gamers probably won't feel pity given the company's rising profits.

http://www.1up.com/do/newsStory?cId=3180364
 
thats an odd thing for them to say what could possibly be gained from them putting that put there? some kind of necesary evil theyre ashamed of that so many other business envy and desire to tap into.
 
Oh please, what a useless thing for them to say. It certainly doesn't fool the people it might be directed at (I would think), and the other half of the equation (soccer moms and the like) could care less either way.
 
....yea and i'm sure that guy doesn't like money either... probably donates his 100k+ salary to charities because it all comes from the used games business....
 
People buy the used games for the price. Maybe if publishers dropped the price of there games more people would buy them.
 
[quote name='Bootcamperz']People buy the used games for the price. Maybe if publishers dropped the price of there games more people would buy them.[/QUOTE]


that is the best thing they could do but they wont.
 
nothing to laugh at here, they are just admitting they do less then admirable practices to survive -- nothing we didn't know.

i rarely buy used.
 
[quote name='panzerfaust']nothing to laugh at here, they are just admitting they do less then admirable practices to survive -- nothing we didn't know.[/QUOTE]

Wait, are we talking about Gamestop, or the CAGs that excitedly talk about how they managed to trade in their busted system for full credit by using the "towel trick"?

I don't get what these less-than admirable practices might be... is it the low TIVs? I'd like to think selling stuff on ebay can make anyone a bit more sympathetic to their TIVs.
 
[quote name='Bootcamperz']People buy the used games for the price. Maybe if publishers dropped the price of there games more people would buy them.[/QUOTE]

No they don't, and it wouldn't change a thing. If the publishers charged less, used games would also cost less, and the same people who already buy used would buy those now cheaper used games.
 
[quote name='eastshore4']Wait, are we talking about Gamestop, or the CAGs that excitedly talk about how they managed to trade in their busted system for full credit by using the "towel trick"?

I don't get what these less-than admirable practices might be... is it the low TIVs? I'd like to think selling stuff on ebay can make anyone a bit more sympathetic to their TIVs.[/QUOTE]

I think it's more about the fact that the used-game market hurts developers.
 
[quote name='panzerfaust']I think it's more about the fact that the used-game market hurts developers.[/QUOTE]
Remind me why I should care when it seems like far too many games this gen are glitchfests that're patched like crazy AFTER release. Bad developers crying about 'omg we're losing profits due to the used market' NEED to be put out of business by the used market.

When a game crashes and freezes and won't work for longer than 20 minutes THAT is a problem and gamers should speak with their wallets and only buy used versions of those games or not buy from those companies selling such shit at all.
 
[quote name='lokizz']thats an odd thing for them to say what could possibly be gained from them putting that put there? some kind of necesary evil theyre ashamed of that so many other business envy and desire to tap into.[/QUOTE]

Its cheap damage control for their customers is why they said it. They said it so maybe some customers that complain about their policies and pricing on used games might give them a second chance or not see them as such an evil force and be willing to come back to buy more used games from them.

Bottom line is they dont dislike it, they love it. They rake in cash from used games and any company making a profit isnt a sad company. If they really didnt like how they do used games sales then they wouldnt be doing them the way they do.

Used games is just one of many reasons why I havent shopped with them for over a year now. Between the fact they give shit trade in value, sell games used for most of the time dollars less than new, they sell used games in shitty condition alot of times with no box or manual but no reduced price because of it and the fact they hassle people about used games both buying and trading them in and all the other reasons I dont like that store I wont shop there anymore.

I really really dislike gamestop for multiple reasons just beyond used games and will not give them money just like I dont give bestbuy money anymore either. The only thing to come out of lamestop I like is game informer magazine.
 
[quote name='IAmTheCheapestGamer']Remind me why I should care when it seems like far too many games this gen are glitchfests that're patched like crazy AFTER release. Bad developers crying about 'omg we're losing profits due to the used market' NEED to be put out of business by the used market.

When a game crashes and freezes and won't work for longer than 20 minutes THAT is a problem and gamers should speak with their wallets and only buy used versions of those games or not buy from those companies selling such shit at all.[/QUOTE]

I wasn't asking anyone to care, and I agree with you 0_o

Of course, I almost always buy new because I stay away for terribly developed software.
 
LOL GameStop.

[quote name='IAmTheCheapestGamer']Remind me why I should care when it seems like far too many games this gen are glitchfests that're patched like crazy AFTER release. Bad developers crying about 'omg we're losing profits due to the used market' NEED to be put out of business by the used market.

When a game crashes and freezes and won't work for longer than 20 minutes THAT is a problem and gamers should speak with their wallets and only buy used versions of those games or not buy from those companies selling such shit at all.[/QUOTE]
They're that way because console games can be patched these days. Ask any longtime PC gamer; for that platform, this is nothing new.
 
[quote name='IAmTheCheapestGamer']When a game crashes and freezes and won't work for longer than 20 minutes THAT is a problem and gamers should speak with their wallets and only buy used versions of those games or not buy from those companies selling such shit at all.[/QUOTE]
Which game is this?
 
[quote name='blueshinra']LOL GameStop.


They're that way because console games can be patched these days. Ask any longtime PC gamer; for that platform, this is nothing new.[/QUOTE]

Still doesn't make it right though. With the development budgets some titles have, there's no excuse for those games to be short, or shitty or buggy. And now publishers want to "double-dip" on the games with the most re-playability by charging people extra to play a used version online. :bomb:

We, as consumers, aren't obligated to buy games new. Publishers are obligated to give us a legitimate reason to buy their products new.
 
[quote name='blueshinra']They're that way because console games can be patched these days. Ask any longtime PC gamer; for that platform, this is nothing new.[/QUOTE]
But if I'm spending half of my time just downloading patches for games, then what's the point? Games are meant to be played, not constantly needing to be patched and taking up alot of your gaming time in doing so.

[quote name='FriskyTanuki']Which game is this?[/QUOTE]
It was just a generic example. But I'm sure there's some console game out there that's like that.:roll:

Furthermore, I agree with mogamer, in that devs are nickel and diming us for everything that should've been included with ANY version of a game we get. Even Rockstar is doing it now, as they're charging for you to be able to play poker and other things you are able to play in the single player version online.
 
[quote name='IAmTheCheapestGamer']It was just a generic example. But I'm sure there's some console game out there that's like that.:roll:[/quote]
If you want to keep complaining about this probably non-existent game that completely supports your point, go right ahead.

[quote name='IAmTheCheapestGamer']Furthermore, I agree with mogamer, in that devs are nickel and diming us for everything that should've been included with ANY version of a game we get. Even Rockstar is doing it now, as they're charging for you to be able to play poker and other things you are able to play in the single player version online.[/QUOTE]
I'm sure you'd rather not have that option at all rather than an update or DLC that adds it in post launch.
 
[quote name='FriskyTanuki']If you want to keep complaining about this probably non-existent game that completely supports your point, go right ahead.

I'm sure you'd rather not have that option at all rather than an update or DLC that adds it in post launch.[/QUOTE]
With all of the shit games I've played last gen and this gen thus far, I have no doubt there HAS to be a game out there that is that shittastic as far as being glitchy and unplayable goes. Oh wait...Mercenaries 2.#-o

As for not having the 'option' of adding in DLC, which many times is on the actual disc but you have to pay an ADDITIONAL $10(minimum usually:roll:)for the functions that should just be unlocked from the get go if you bought the game. Then yes, I'd rather not have the option cuz the company wanted to make a grab for another $10 from me after I just paid them $60 for the fuckin' game.
 
Thing is I trade in games to buy new games. I don't even buy that many used games, and when I do, it's either from Goozex or a B2G1 free sale at Gamestop.

Or I'll buy used games to protest a publisher's actions (used to do it for EA Games and continue to do it against EA Sports, now trying to start with Activision.) I will have to admit the issues sports games have had in the last couple of years is making me contemplate going used only on all sports games since many times they're unplayable online or have major offline bugs for the first month-plus after release.
 
[quote name='IAmTheCheapestGamer']But if I'm spending half of my time just downloading patches for games, then what's the point? Games are meant to be played, not constantly needing to be patched and taking up alot of your gaming time in doing so.[/QUOTE]
I agree, but that's the way things are. Though they aren't completely comparable, game consoles have become more like PCs than they ever were in the past. That means all the good stuff (user-generated content, expansion packs, GOTY editions, etc.) and crap (patches, etc.) that come with it.

But we're getting waaay off topic here...
 
[quote name='mogamer']We, as consumers, aren't obligated to buy games new. Publishers are obligated to give us a legitimate reason to buy their products new.[/QUOTE]

Bingo. I have no sympathy for developers/publishers whining about how people legally acquire their games, it's called the first sale doctrine, it's been around for a damn long time.
 
[quote name='ElwoodCuse']Bingo. I have no sympathy for developers/publishers whining about how people legally acquire their games, it's called the first sale doctrine, it's been around for a damn long time.[/QUOTE]

Amen.

Sort of related but I've actually been told on a different forum that because I'm not down to pay 1200 MS points for the upcoming Hydro Thunder game, that I'm not excited about it. fucking kids.
 
Ok, I'm pretty split on this issue.

1) GameStop's suggestion, that they don't like being in the used game business, but it was necessary for them to survive, is probably true. If it weren't for their used game sales, Amazon, Best Buy, Wal-mart, and Toys 'R Us would have put them out of business.

2) As much as I dislike gamestop for their deceptive and unethical business practices--selling used games as new, and the arguably small amount you get for trade-ins--I don't see their used game sales business as a parasitic. There is absolutely nothing wrong with selling used stuff. If the game companies wanted to, they could buy the games back and resell them and make the profit themselves (or all create a joint venture to do so). I think most of the problem is that GameStop is not sharing the profits--that's the real controversy.

3) The main people who buy and trade used games are kids who don't have parents that buy them everything they want. Aside from my grandmother, my parents never bought me games. I had to save up and pay for all my gaming by myself. Fortunately, I never felt the need to sell my games back to get more; however, I can't hold it against some kid that can't afford a brand new game every month.

4) As far as I'm concerned, I rarely buy used games--especially after getting on CAG. You can usually find good deals on new games that make used games less appealing. Also, I do like to support my favorite developers and publishers with my money.

So anyway, I guess there's no easy answer.
 
[quote name='jh6269']Ok, I'm pretty split on this issue.

1) GameStop's suggestion, that they don't like being in the used game business, but it was necessary for them to survive, is probably true. If it weren't for their used game sales, Amazon, Best Buy, Wal-mart, and Toys 'R Us would have put them out of business. [/QUOTE]

No, the gaming market would put them out of business. The margins on new consoles and new games are not big enough for GameStop to survive. Amazon, Best Buy, Wal-Mart, and Toys R Us could survive because they also sell tons of other stuff.
 
[quote name='lokizz']that is the best thing they could do but they wont.[/QUOTE]

They can't, at least not at first. Games themselves help offset the costs of the hardware as Sony/Nintendo/Microsoft lose money on initial HW sales(at launch). Maybe after they are at cost they could lower the % of royalty on game sales.

Prices of new games have jumped from $49.99 new to $59.99 new. Thats a $10 increase. Used game sales do hurt publishers as it doesn't allow new copies to be purchased which helps bulk up their bottom line. I am not sure if its still in effect, but Japan had a law that prohibited the sale of used games(current generation) as it would affect the profits of said companies.
 
[quote name='saberz']Used game sales do hurt publishers as it doesn't allow new copies to be purchased which helps bulk up their bottom line. I am not sure if its still in effect, but Japan had a law that prohibited the sale of used games(current generation) as it would affect the profits of said companies.[/QUOTE]

The first sale doctrine has been a part of US copyright law for 100 years. I don't see how it "hurts" them because they have no claim to secondary sales.

I also don't understand people whining about the trade-in values Gamestop offers. Do none of you understand the costs involved, and the value of convenience? Gamestop has overhead to meet, and needs to turn a profit. It's like on Pawn Stars when the expert says some doohickey is worth $1000 and then the rube wants that much from Rick. And then they have to be told, "No, I could sell it to someone else for $1000--MAYBE. How about $300 cash right now?"

Yes, you'll probably get more for your crap on eBay. And then eBay and Paypal take their cut, and you need to go to the post office to mail it. And hope the person on the other end doesn't try to scam you. Are you willing to deal with that? If yes, go for it. If you want to bypass all that, then the price of convenience is Gamestop's lower trade-in values.
 
they only said that to look like theyre on the developers side. i try to buy used games whenever i put any money down on a title because of my edge card. still, i expect the original cover and for it to be in good condition or ill put down a little extra for the new copy
 
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