Current Events > Is a video game retailer profitable?

(+) Yeah! (+)

My dream is to own a game shop / retro game shop. And expand and have several branches nationwide.
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As long as you beg people to pre order every game that's coming out you'll do great
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Retro games and consoles can be very profitable
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With the increasing shift to digital, nah not any more - and it'll get tougher all the time as the digital shift continues and ebay takes such a big chunk out of retro stuff.

The most long running and well known indie games shop in my city (Glasgow) that did imports and collectibles etc back to when I was a kid in the early 90s finally closed this month. Sad times! I bought my first imported SNES rpgs there.

If it wasn't, they would not exist

But tbqh the future is a little bleak for them as the industry pushes further toward digital distribution.

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I think they probably made the most money back when trade-ins were a thing. That's where I see the biggest potential profit margins.
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The oldest non chain retro pllace near me went out 2 years ago. Owner cited dwindling inventory to sell and slimmer profit margins. Plus the issues from digital.

Basically, less vintage stuff on the market and what is on it is expensive. This is compounded by the increasing demand for digital. Digital takes future inventory off the shelf and people may not want physical things as much going forward.
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eston posted...

If it wasn't, they would not exist

But tbqh the future is a little bleak for them as the industry pushes further toward digital distribution.

Yeah, I'm sure at the moment the larger chains continue to turn some degree of profit or else they would go under, but looking at the long term future it would be extremely unwise to start up a physical retail gaming shop today as something to make a living off of.

Maybe start an eBay shop buying and selling retro stuff first and see how that goes for a year. You can certainly make decent money on the side doing that as a hobby - scouring flea markets and suchlike and haggling a good price to pick up bundles of old games.

You can certainly make money flipping retro stuff but a retro shop isn't really a good idea unless you have a decent amount of money to stock inventory, buy from people etc.
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It depends. Some do well, some don't. The two shops near me that I like, which have been doing well for years, are both pretty different. They both stock everything from all gens, but one is a conventional retailer while the other is more like a Lan party venue that also sells games. The former has better stock and prices, but I swing by the latter too just to see if they have something the former doesn't, which despite their smaller stock, they usually do. But they seem to get most of their business by charging people to play in the back.

I think the main thing is the area you're in. These two places rule because they always have great stuff, but since it's all on a trade-in basis, they only have great stuff because people in the area have great stuff to trade. Which I don't know how you would gauge. And obviously, having too many shops in one place is gonna make it harder too.
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I mean GameStop has pretty much cornered the market. I don't think it would be possible to have a successful local shop if there's already a GameStop nearby.

Ic3Bullet posted...

I mean GameStop has pretty much cornered the market. I don't think it would be possible to have a successful local shop if there's already a GameStop nearby.

Gamestop has cornered the part of the market that's going away. For whatever reason, they only deal in the one or two most recent gens, which are rapidly digitizing. They do have retro stock but only online.

Gamestop is an idiot, basically.

So the market is wide open for retailers of retro stuff.
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These days you gotta find a way to make your store an experience. Theres no reason for the normies to visit your store if theyre just going to pick up a game, pay, and leave.
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furb posted...

Basically, less vintage stuff on the market and what is on it is expensive.

For every copy of Suikoden 2 under the glass, you've got fifty people angry that you'll only pay a couple bucks for an old Madden.
Also Suikoden 2 can be downloaded for $6 or so, making that copy under the glass a very hard sell.

Questionmarktarius posted...

furb posted...

Basically, less vintage stuff on the market and what is on it is expensive.

For every copy of Suikoden 2 under the glass, you've got fifty people angry that you'll only pay a couple bucks for an old Madden.
Also Suikoden 2 can be downloaded for $6 or so, making that copy under the glass a very hard sell.

You know, I actually talked to the cashier about this once. She says that you wouldn't expect it but when rare games get a digital release, it actually brings people to the store wanting to buy the physical because it brings the game back into public attention. I dunno how long that boost lasts though.
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DevsBro posted...

I dunno how long that boost lasts though.

I'd guess it lasts about as long as it takes to notice the $200 sticker.
The idea is that the hard copy will finally drop in price, but it barely does, if at all.

Questionmarktarius posted...

DevsBro posted...

I dunno how long that boost lasts though.

I'd guess it lasts about as long as it takes to notice the $200 sticker.
The idea is that the hard copy will finally drop in price, but it barely does, if at all.

Not every retro game goes for $200 though lol.
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DevsBro posted...

Questionmarktarius posted...

DevsBro posted...

I dunno how long that boost lasts though.

I'd guess it lasts about as long as it takes to notice the $200 sticker.
The idea is that the hard copy will finally drop in price, but it barely does, if at all.

Not every retro game goes for $200 though lol.

Unfortunately, there's a huge availability abyss between Madden and Suikoden 2.

If you want a SMB3 cart, there's probably half a dozen waiting for you. If you want, say, Makai Kingdom, you can still get it new for about $30 on Amazon, but it's non-existent at retro shops.

Questionmarktarius posted...

DevsBro posted...

Questionmarktarius posted...

DevsBro posted...

I dunno how long that boost lasts though.

I'd guess it lasts about as long as it takes to notice the $200 sticker.
The idea is that the hard copy will finally drop in price, but it barely does, if at all.

Not every retro game goes for $200 though lol.

Unfortunately, there's a huge availability abyss between Madden and Suikoden 2.

If you want a SMB3 cart, there's probably half a dozen waiting for you. If you want, say, Makai Kingdom, you can still get it new for about $30 on Amazon, but it's non-existent at retro shops.

The browse factor is still a thing. Maybe (probably) your shop doesn't have a specific game that you are looking for but hey, here's a copy of Top Gear 3000. I always wanted to play that.
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Big problem retro shops run into is that they end up with a mountain of surplus Madden 199_ carts.

I dont know who buys them, but somebody has to be otherwise businesses would have put a moratorium on them a long time ago.

I love 2nd and Charles but there N64 rack is almost always 15 Madden carts, a wrestling game, and then something random like Forsaken or Winback
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