Selling Game Consoles At Gamestop

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Selling Game Consoles At Gamestop – GameStop may one day expand its business into the DLC category, according to the latest comments from a top executive at the company. Selling used digital content is already popular in games like DOTA 2 and World of Warcraft. But on consoles, digital content is often licensed to a single profile and then not transferred. But it may not be forever.

Speaking to Ars Technica this month at the GameStop EXPO in California, GameStop executive vice president Mike Hogan said the retailer is “absolutely” interested in exploring the possibility of selling secondary DLC consoles.

Selling Game Consoles At Gamestop

Selling Game Consoles At Gamestop

“It will require a partnership between retailers and publishers, but it can certainly happen that way,” Hogan said. “We’re absolutely interested in doing that. There are many examples of people taking digital content and moving it from consumer to consumer. Think of World of Warcraft [and the sale of third-party merchandise]. There’s nothing mainstream or mainstream. There’s no technological reason why it couldn’t happen. [on other platforms]. If the consumer wants it and it provides value, we think that will happen over time. The consumer will talk about it.”

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Hogan went on to say that GameStop is “very serious” about digital gaming, noting that the retailer is currently talking to platform owners like Microsoft and Sony about how GameStop can work with them to create a used sales model for downloadable games. Regarding digital gaming in general, Hogan said, “We don’t see it as a threat; we see it as an opportunity.”

PlayStation representatives declined to comment on the possibility that the digital content will one day be resold, while an Xbox representative said the company “believes in digital distribution of Xbox… but has nothing to share about the business and resale potential at this time.” “

GameStop’s interest in reselling digital content for consoles seems to have increased in recent years. In July 2012, GameStop CEO Paul Raines confirmed that the company was considering some European technology that would allow users to resell digital console content, but said, “We don’t see it as a huge market right now.”

In turn, Xbox CEO Albert Penello said in September 2013 that support, lending and sales of the Xbox One digital games business would eventually end. “I think we should do that. It should be part of the [Xbox One] experience,” Penello said at the time.

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The products reviewed here were independently selected by our editors. If you purchase something featured on our site, you may earn a share of the revenue. As the conversation continues to swirl around GameStop’s inventory, we decided to take an in-depth look at the retailer’s offerings. Getty Images

GameStop has been in the headlines this week for its massive stock price rise (and subsequent fall) and the Reddit-inspired crowdsourcing to make it happen. GameStop, a gaming retailer that specializes in video games and consoles, has not fared well as its store traffic has declined during the Covid-19 pandemic. With continued volatility in the seller’s value in the stock market, GameStop has once again caught our attention after doing so last week with news that it has restocked the Playstation 5 and Xbox X and S models. With the retailer dominating the headlines, it might be a good time to learn more about the game store that sells a lot more than just video games and game consoles.

While the retailer is best known for selling video games and game consoles and accepting trade-ins for video games and consoles for store credit (or cash for select items), it actually has a wide variety of offerings.

Selling Game Consoles At Gamestop

GameStop offers weekly sales and sometimes short-term deals. Here are some of the best GameStop sales and deals going on right now.

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Selling used games at GameStop is very profitable. GameStop exists to make money. GameStop does its best to sell more used games than new games, and the people who work there make it their job to get you to buy more used games than new games. This is where the money comes from.

Several stories from Kotaku described how a long-standing system for tracking how well employees were selling used games and accessories was improved to the point where employees feared for their jobs.

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“The program, called ‘Lifecycle,’ gives each GameStop store different percentage quotas for 1) pre-orders; 2) rewards card subscriptions; 3) used game sales, and 4) game trade-ins,” Kotaku said. “Each of these quotas is based on the total turnover of the store. Pre-orders and rewards card subscriptions are based on the number of transactions, while used game sales and trades are based on the total dollar value of the transaction. If a store’s used game sales quota is 30 percent and the store sells $1,000 worth of merchandise, GameStop expects to hold at least $300 of that merchandise first.

I worked at Electronics Boutique for several years and they went out of business relatively soon after GameStop bought EB Games in 2005. These companies have always pushed employees to push higher-end products at the expense of new games in order to increase profit margins.

This is why the pre-order system is so important; GameStop doesn’t want to be in a situation where it’s sitting on unsold copies of new games. A game that is sealed and not sold in the back room is a liability. GameStop isn’t concerned with selling games; A company can buy as many as they want. GameStop wants to make sure it buys as few copies as possible from its reseller and then gets its own purchases and money for accessories.

Selling Game Consoles At Gamestop

GameStop is in the used game business, make no mistake. Let’s look at the profit margin from the third quarter of 2016:

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During the period, GameStop generated $187.3 million in revenue from new games and new hardware, up 24.3 percent and 13.1 percent, respectively. The company generated $218 million in used and “value” video products during the same period, posting a 46.4 profit margin. It’s not… subtle.

You can dig deeper, but the reality is – and probably always has been – that GameStop’s profit from used games far exceeds its profit from new games. So they want to sell more used games. So they implement systems that punish employees who don’t. If the negative reinforcement is strong enough, such as the threat of losing a job, the employee has a strong incentive to lie or mislead the customer.

“We want every customer to get the products and deals that are right for them, whether it’s a new or pre-owned video game, a digital game or a collectible game,” GameStop said in a statement. “The lifecycle creates tremendous value for the customer. Consider these facts: Last year, GameStop extended nearly $1 billion in trade credit to our customers. 70 percent of the time, those trade dollars were immediately spent on new game products.

The statement is accurate; the company never told anyone to lie and not everyone is a liar. But an incentive system was put in place to make sure employees always knew the value of selling used games and systems over new ones. No one is saying to mislead these employees, but the company has put them in a position where managers can put extreme pressure on employees to push high-margin items. The incentive system does the rest.

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“This number shows just how profitable GameStop is in selling used products. On average, they earn 48 percent of their gross profit for every dollar of used product revenue,” the company said. “Another category includes high-margin accessories, of which GameStop keeps about 34 percent of every dollar of sales. … As is widely known in the industry, GameStop’s used game sales are more profitable than their sales. new games; software and new hardware, respectively, bring in 21 cent and six cents.

GameStop exists to push used games and systems because that’s where all the money is. We don’t know the price Sony charges GameStop for each PlayStation 4 Pro, but the systems have reportedly always had low or negative profit margins for the companies involved.

Know that Game Stop will give you $200 in store credit for a PlayStation 4 Pro or $160 in cash. Then they sell this system

Selling Game Consoles At Gamestop

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