RolStoppable said:
radishhead said:
I never considered that, very interesting.
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But its nonsensical. We are talking about Gamestop here, who have a big stake in the second hand market because they buy used games at low prices and sell them close to the RRP of new games and probably handle it similar when it comes to used consoles. They aren't going to hoard or destroy used consoles, they'll push them back into the market.
The margin they are going to have on Vitas with this trade-in deal is going to be lower than for any other console in this deal, but the logic here is to give people an incentive to upgrade to newer hardware which in turn moves these consumers into a bracket with higher margins. After all, recent console purchases are more likely to motivate consumers to make game and accessory purchases than consoles that have been bought years ago.
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Actually it's simpler than that. Their inventory for new Vita hardware is quite low and have been for a while now, so they rely on trade fill up their stock. It's same situation with the WiiU, it's easier for them to encourage trade and refurbish the hardware than bargain with Nintendo and Sony for allocation on slow moving products.