Used Game Trade Hits 100 Million Units in the U.S.

[Andy Chalk]

Used Game Trade Hits 100 Million Units in the U.S.

A new report by Wedbush Morgan [http://www.wedbush.com/] says 100 million units are moved by the used videogame trade in the U.S. annually, generating revenues of $2 billion.

The used games trade accounts for one-third of all videogames sold in the U.S. each year, according to the report, but actually has very little impact on the sales of new videogames. Only five percent of new game sales are affected by the pre-owned market and that amount is very likely "more than offset" by gamers who use money from trade-ins to purchase new releases.

"The vast majority of used games are not traded in until the original new game purchaser has finished playing - more than two months after a new game is released - typically well beyond the window for a full retail priced new game sale," said Wedbush analyst Michael Pachter. Furthermore, he added, the belief held by many people that retailers push used game sales ahead of new ones is "largely untrue."

"If trade-ins occur at GameStop, they should position the trade-in customer to buy more new games than he/she would otherwise normally purchase," the report said. "Because the average used game value is around 20 per cent of the new game price, we think that used game trade-ins fuel incremental sales of over six per cent of total new game sales, suggesting that the cannibalization from the used game 'push' is more than offset by the benefit from used game currency."

Source: GamesIndustry [http://www.gamesindustry.biz/articles/100-million-used-games-traded-annually-in-US]


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[Credge]

Wait, what? I'm not getting something here.

USED games generate $2 billion annually. What does this have to do with people buying a new game and then selling it back when they're done?

Please, someone clue me in on what I'm missing here. Why did he bring up brand new games when referencing used games?

 

[the_tramp]

"Because the average used game value is around 20 per cent of the new game price"

What world does Michael Pachter live in? I'm lucky to get 10% off of a new game price!

 

[L.B. Jeffries]

Wait, what? I'm not getting something here.

USED games generate $2 billion annually. What does this have to do with people buying a new game and then selling it back when they're done?

Please, someone clue me in on what I'm missing here. Why did he bring up brand new games when referencing used games?

Pachter is attempting to prove that used games do not cost developers as much money as they claim.

For example, by Pachter's logic the average person does not buy GTA IV then sell it back the following week. They keep it for roughly 2 months before trading it in. By this point the game will have gone down in cost significantly because most games have 1 month at the 60 dollar price tag before stores start marking them down to make new shelf space.

I don't really understand why Developers ***** about this when services like Steam and Xbox Market exist. Hell, I just forked over 15 bucks for The Warriors game. If I could have downloaded it onto my 360 or Wii, I would have done it in a second. As nearly as I can tell, they shoot themselves in the foot by sitting on their asses and not making the old games widely available for competitive used-game prices.

 

[cavsfan69]

Used Game Trade Hits 100 Million Units in the U.S.

A new report by Wedbush Morgan [http://www.wedbush.com/] says 100 million units are moved by the used videogame trade in the U.S. annually, generating revenues of $2 billion.

The used games trade accounts for one-third of all videogames sold in the U.S. each year, according to the report, but actually has very little impact on the sales of new videogames. Only five percent of new game sales are affected by the pre-owned market and that amount is very likely "more than offset" by gamers who use money from trade-ins to purchase new releases.

"The vast majority of used games are not traded in until the original new game purchaser has finished playing - more than two months after a new game is released - typically well beyond the window for a full retail priced new game sale," said Wedbush analyst Michael Pachter. Furthermore, he added, the belief held by many people that retailers push used game sales ahead of new ones is "largely untrue."

"If trade-ins occur at GameStop, they should position the trade-in customer to buy more new games than he/she would otherwise normally purchase," the report said. "Because the average used game value is around 20 per cent of the new game price, we think that used game trade-ins fuel incremental sales of over six per cent of total new game sales, suggesting that the cannibalization from the used game 'push' is more than offset by the benefit from used game currency."

Source: GamesIndustry [http://www.gamesindustry.biz/articles/100-million-used-games-traded-annually-in-US]


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At least we know none of these used games are EA games for the PC. You dont actually own those, you just get to install them 5 times.

 

[LevelSix]

Used Game Trade Hits 100 Million Units in the U.S.

A new report by Wedbush Morgan [http://www.wedbush.com/] says 100 million units are moved by the used videogame trade in the U.S. annually, generating revenues of $2 billion.

The used games trade accounts for one-third of all videogames sold in the U.S. each year, according to the report, but actually has very little impact on the sales of new videogames. Only five percent of new game sales are affected by the pre-owned market and that amount is very likely "more than offset" by gamers who use money from trade-ins to purchase new releases.

"The vast majority of used games are not traded in until the original new game purchaser has finished playing - more than two months after a new game is released - typically well beyond the window for a full retail priced new game sale," said Wedbush analyst Michael Pachter. Furthermore, he added, the belief held by many people that retailers push used game sales ahead of new ones is "largely untrue."

"If trade-ins occur at GameStop, they should position the trade-in customer to buy more new games than he/she would otherwise normally purchase," the report said. "Because the average used game value is around 20 per cent of the new game price, we think that used game trade-ins fuel incremental sales of over six per cent of total new game sales, suggesting that the cannibalization from the used game 'push' is more than offset by the benefit from used game currency."

Source: GamesIndustry [http://www.gamesindustry.biz/articles/100-million-used-games-traded-annually-in-US]


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At least we know none of these used games are EA games for the PC. You dont actually own those, you just get to install them 5 times.

Isn't that the sad truth of it?

 

[Lono Shrugged]

I find that the trade in market can be pretty interesting if you shop around. I picked up a game once for 30 bucks and a week later after clearing it traded it for 35 bucks (credit) to another store. I often get exactly as much as I payed for some games. it's not like playing stocks or anything but I generally hang on a few weeks and get second hand console games. It's not like the cartridge era where games can be damaged and you won't spot it. Second hand games are a very good way to buy games and you cannot argue with prices. If I see RE 5 for five bucks cheaper second hand I'm getting it.

I think game companies probably need to do something about it but they need to leave the consumer out of it.

 

[Sevre]

Yeah its a good way to keep gaming, you can buy Infamous, complete it,trade it in and buy Prototype.