Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
July 23, 2014
arrowPress Releases
July 23, 2014
PR Newswire
View All





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

April 6, 2009 | By Leigh Alexander
Comments
    Post A Comment
More:



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

2K
2K — Novato, California, United States
[07.22.14]

Level Architect
Cloud Imperium Games
Cloud Imperium Games — Santa Monica, California, United States
[07.22.14]

Art Outsourcing Manager
Respawn Entertainment
Respawn Entertainment — San Fernando Valley, California, United States
[07.22.14]

Senior Systems Designer
Petroglyph Games
Petroglyph Games — Las Vegas, Nevada, United States
[07.22.14]

Senior Unity Artist










Comments



none
 
Comment: