One of the forces behind the GameStop video game store chain's continued survival is the fact that they sell and trade used games. GameStop makes 44% of their profits based solely on the business of buying your old games for pennies and selling them back for dollars. This is, as much as they're loath to admit it, their core business. That's why, when Amazon announced they're officially entering the used game trade-in racket, GameStop stock plunged.
A $3.54 drop in a few short hours is bad, but Amazon coming into your business is a bit like Wal-Mart moving in down the street. Things are going to get rough. And it's not just Amazon, either; Toys'R'Us is moving into the used game business too. And there are still Mom and Pop stores doing good on the trade-in business, as well as Half.com and eBay. Still, an Amazon gift card can be spent on pretty much anything, and free shipping to Amazon from your house is a tempting offer.
GameStop does have the advantage of cash in hand and location, but will that be enough to win your used-game trade-in dollar?
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Posted by: Shaktronics » Amazon Adds $30 To Your Trade-In Games | August 11th, 2009 2:29 pm |