GameStop Brings New Meaning To Gross Profit

File this under the things you really didn't want to know category, right between the "yes, your parents had sex to make you" and "McDonalds cheeseburgers are half tofu, half insect protein" files. Next Generation has documented that GameStop makes loads of money by selling you used games. Shocking, we know.

While GameStop sells more dollars in new software than used, their gross profits on resales are indisputably the $US 650 million lifeline of their business. Then again, all those consoles GameStop sells—that's basically charity work. Here's another graph showing you the breakdown even better:

gamestopgrossmargin.jpgYou see, even though GameStop sells roughly a billion dollars in consoles a year, they're not even making a tenth of that money up (directly) in profits, pulling in less than US 10-cents on the dollar for the hassle. For new games that number jumps to US 20-cents. But then, through some creative accounting in their buying back and reselling, GameStop makes an industry-dwarfing US 50-cents of every dollar from resold games.

As they say in France, that's curraazzzeeee.

But as they say at the Gap (or any other clothing retail store), it's not that crazy.

By the Numbers: Used Games Revisited [NextGeneration]

WATCH MORE: Gaming News


Comments

    this is why I dont shop at Gamestop, I could buy a game like uncharted or assassins creed for $15 less in a toy store

    That's nothing. Don't you pay attention to what the oil companies are making? Talk about gross profit. I'm talking billions a quarter for all of them. This is peanuts compared to that.

    What must be noted is the GME does purchase ALL used games, regardless of the likelyhood it will be resold. Granted, they might not give you much, but at least you can get something for P1 games hahaha. And besides, even if theyre making 50% on the dollar, as long as theyre providing me a good quality game with a gaurentee on the tested disc, ill take my 10$ discount instead of chancing it on ebay.

Join the discussion!