GameStop CEO believes next-gen consoles won’t kill the pre-owned games market
GameStop is apparently very optimistic for next-generation consoles, saying that they do not believe previous reports concerning pre-owned bans would be possible.
Talking during the quarterly earnings call last week, GameStop CEO, Paul Raines, said that publishers and manufacturers in the industry are simply not going to ignore the potential $1.2 billion generated each year in pre-owned game sales.
“We think it’s unlikely that there would be that next-gen console because the model simply hasn’t been proven to work,” said Raines of the rumored anti-used games feature.
“Remember that used video games have a residual value. Remember that GameStop generates $1.2 billion of trade credits around the world with our used games model. So, consider taking used games out of that, you’d have to find new ways to sell the games, and our partners at the console companies have great relationships with us.”
Raines went on to say that the business model is simply too good to pass up for the industry at large. While various industry parties have their critiques on the used-games business, GameStop’s model is giving gamer’s the ability to get near-new games at a lower price point than usual, he said.
“What we’ve done is created a way for that new leading edge consumer to dispose of their old games and that’s what creates this great circle of life we talk about that so many try to imitate.”
What do you think, is Raines right or is the end in sight for the pre-owned games market?