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darkknightkryta on 17 November 2010
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dunno001 said:
spaceguy said:

What about game stop? oh all used games right, thats why they want you to pre-order and buy new games. They make money off new games or they wouldn't stock them or give deals like 35 on a new game. They make around 20 bucks off  of each one new.

Your full of it, you have no data.  NO link. your buddy's sister dad works for a big store in africa. get off it already.

You just think you know what your talking about but you have no clue.

*sighs* Okay, what is the margin on a new game, then, if you're calling it bull? A store isn't going to divulge their margins on products to Joe Public for obvious reasons. Best Buy is in fact one of the few retailers where the employees can get an idea of what wholesale is, based on their employee discount. What if I told you that 8-pack of Dynex batteries that costs you $6 or so, costs BB 80 cents? A lot of people would be asking why is it so expensive to them, then. (Oh, and yes, that is the wholesale for that item... or it was, a few years ago.) I also saw the average margin on a game: 20%. A $60 game, under normal cases, costs $48. Of course, certain deals may be negotiated to lower this, or some larger titles may ask for a bit more, to max the publisher's profit.

So yes, Gamestop does make money on new games. However, note how they also want you to leave a deposit- pay money before you get the item. They use this $5 per person, and invest it, getting more than $5 worth by the time you get your game! But, unless there was a great deal negotiated, there is not a $20 margin on new games- unless it's MSRP is at least $100.

I can see why more and more companies are looking at getting into the used game market- margins are better. For Gamestop, the worst case margin for them is a new game, that they're still paying $30 for (and this is already a rare price; most new only go to $25), and they gave a 25% bonus as a trade-in toward another preorder. Total cost to GS: $37.50. They turn around and sell this to a member, for the discounted price of $49.50. The margin on this, the worst case scenario to the retailer, is almost 25%, or 5% more than a new game! Best case, they pay someone $30 and get $55, which, well... you can do the math.

I used to get 15% off working at eb games.  And knowing that company they wouldn't give us 15% off if they didn't get more than that off of games.  The reason why I suggested 20 dollars before was because I've noticed games quickly being cleared out for 39.99 and that seems to be the consistent clear out price.  And even though I work at a completely different retail store currently (I'm a produce clerk), when we reduce product, it's at our cost price so I'm guessing their cost price of 39.99.  20 dollars my estimate though it probably is closer to 10 dollars.