Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
December 7, 2016
arrowPress Releases






If you enjoy reading this site, you might also want to check out these UBM Tech sites:


Analyst: Used Market Rush Unlikely To Affect GameStop
Analyst: Used Market Rush Unlikely To Affect GameStop
April 6, 2009 | By Leigh Alexander




Analysts say that online retailer Amazon's recent entry into the used game market can coexist peacefully with GameStop's share, but Lazard Capital Markets' Colin Sebastian says to expect other retailers to try and jump on board, too.

"According to our industry checks, one large consumer electronics retail chain is rekindling efforts to sell used video games, while another general merchandise 'big box' store is in trials to buy back games in exchange for store credit," says Sebastian.

Sebastian says that the sector, which he values at about $2 billion annually in North America, is seeing increased competition, and new challenges to current dominance on the part of GameStop, GameCrazy and eBay. With nearly 50 percent gross margins according to the analyst, it's an attractive profitability proposition for retailers.

But with high barriers to entry in building a successful second-hand business including inventory balance and pricing challenges, Sebastian doesn't expect anyone to genuinely threaten GameStop's market share any time soon, suggesting that any impact to the leading retailer will take the shape of share price response to news headlines rather than actual lost revenue.


Related Jobs

Wargaming America, Inc.
Wargaming America, Inc. — Emeryville, California, United States
[12.07.16]

Community Manager
Lionbridge Technologies
Lionbridge Technologies — Bellevue, Washington, United States
[12.07.16]

Games Website Developer (#2346)
Nordeus
Nordeus — Belgrade, Serbia
[12.07.16]

Senior UI Artist - Top Eleven
2K
2K — Novato, California, United States
[12.06.16]

SENIOR RENDERING ENGINEER - CORE TECHNOLOGY GROUP









Loading Comments

loader image