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GameStop: Our business model isn't hurting publishers

In these extracts from GameStop's Investor Meeting held on June 11th, the brick-and-mortar retailer forwarded the position that its trade-ins and used games sales do not affect publishers.

Kris Ligman, Blogger

June 14, 2013

1 Min Read
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Investment firm Wedbush has released its annual review of E3, deeming it a strong year for the conference. In it are some key extracts from GameStop's Investor Meeting held on June 11th, in which GameStop forwarded the position that its trade-ins and used games sales do not affect publishers:

It is in the publishers' best interests to allow used gaming due to the $1 billion in trade-in credits generated in GameStop stores every year... [T]ransactions on new and used games overlap on only 13% of titles, with only 4% of used sales for games that have been released in the last 90 days.

In other words, GameStop claims that it isn't selling many used copies of recently released games, thus it's doing little to harm to publishers' revenue. This is especially so if one takes into account DLC and other digital services for games, facilitated through GameStop exclusives or otherwise. If accurate, this would fly in the face of some of the rhetoric used to defend lockdown on preowned game usage, such as with Microsoft's upcoming Xbox One.

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