Most of us know that the digital age upon us, and with the new generations of consoles pushing to go digital, I was wondering what is going to happen to video game retailers like GameStop and PlayNTrade, who mainly cope with used games sales. GameStop and its friends’ make most their profits on the used gaming market, by permitting us trade within our used games and selling them for cheaper. Customarily, Nearest Gamestop will help you to trade in a new release, and receive less than half of the price back, and then turn around and sell it 5 dollars under full price. Now is that fair? No but which is for another day, today we will discuss GameStop after Digital Downloads.
GameStop has earned an annual profit which is worth approximately $1.8 billion per year, mainly due to the selling and reselling of used merchandise, as well as the developers only get compensated once. And so the developers and also the gaming companies have found a means to allow them to maximize their profit, to make the games cheaper for that gamers. This move might be what is must help combat up against the rapid decline in video games sale. To assist quell the assumption that the used games don’t hurt the developer profit, GameStop went on record, stating that 70% of the profits of used games go back into the buying new games, but what is going to happen when that stops? How will they have the ability to keep up with the well-oiled machine that is GameStop? Well that knows there are many of ideas i have but only one appears to stick out, and also to me it will be the most profitable.
GameStop did some things that to stay in front of the curve, it has started consuming iPod and iPhones and selling them used. This is in direct correlation with the new consoles push for digital games and DLC. It is a smart move ahead their part, and gives them a large profit margin with the selling of used Apple products. It has additionally been confirmed by TGA that they may be selling mobile phone plans later on. With incorporating selling of mobile phones, Gamestop Headquarters can gain revolving profit. As long as consumers cwuwge their bill each month, GameStop will receive a check. Just what exactly will GameStop become?
It seems like GameStop is preparing to change their brand over to become “used stop”. UsedStop will certainly be a place that you can trade in all your used gaming and electronics. People should be able to trade inside their old TV, computers, Blu-Rays Player, and others to obtain each of the new releases that might be being released. UsedStop could keep to the old philosophy and can change their goods to hit all spectrums and stay a force in the retail game. I think that UsedStop will still stay gaming oriented, using the game informer and gaming products, but must change with the times to keep relevant, i.e. RadioShack.
With all of with that being said downloading games would be the way for the future and people who think the used game market will survive it won’t, and Gamestop Thanksgiving Hours along with its friends’ will change to stay in the current market. UsedStop in my mind would be the future for GameStop so watch out