Aug 6th, 2012



About a week ago, Paul Raines was speaking about how he wants to somehow resell digital content. Now, the Gamestop CEO  recently spoke with Gamasutra defending his company’s well-known business model of selling pre-owned games. He even stated that the business has a positive effect on developers. He stated:

We are not ashamed of the pre-owned business and in fact we believe that it’s good for the industry

On the side of the developers, Raines said that more can be done to communicate the benefit to developers, he stated:

We’re really not cannibalising new game sales. That’s a common misconception. So my answer to developers is that we are driving growth in a category that needs to grow. We think there’s a real lack of awareness as far as how it’s good for the industry. The transparency you’re seeing from us is because we want people to know about it, helping people understand what we’re trying to do for the industry

According to Raines, gamers keep their games for about 6 weeks before trading them in, which allows people to then purchase those games more cheaply and gives consumers the chance to try new genres and titles. He stated:

A lot of our consumers tell us that the pre-owned business has allowed them to learn more about video gaming. There’s a disconnect between a lot of the blogosphere and what consumers tell us.

Raines feels that the pre-owned trade-in business will always be around as long as there are people who cannot afford the high price of triple-a games on the latest consoles on launch day. He stated:

The pre-owned business is not going to go away overnight. No matter what happens, there will be people who want a $9.99 Madden 07. They don’t have $59 to pay for the new game. We’ve got a ton of customers still playing PS2 games. I mean, where do you buy PS2 games anymore except Gamestop? There’s a consumer for that.

Agree with Raines? Are you a fan of the trade-in business? Let us know!