Poll of the Day > I can't believe how high gamestop trade values are...

(+) Yeah! (+)

Pretty much every switch game I own trades in for $38.50. Debating on selling all the ones I beat except for Smash/Kart/Party. But, I do like having them :/ all for some silly reason.

Then a ton of my PS4 game are $8-11 trade credit that I got years ago for $15-20. Going to remove them from the cases and trade them in and make a collage from the box art.

It's definitely cheaper to go physical than digital when factoring in sales...but also digital you get to keep a copy of the game and physical you'd have to sell back for that to be true. Digital is cheaper to 'own', physical is cheaper to 'rent'.

I don't see why people hate on their trade values. They're maybe 10% under what you'd get on eBay or Facebook Market with much less effort.

lol they are much worse than selling on ebay

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Idk. Unless theres a digital sell, they cost about the same. Well, physical would be cheaper since youre getting the game and other stuff with it.

Also, the trade in values seem to be higher than what they normally are. But it might because theyre Nintendo games, or because the store is like dying...
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LinkPizza posted...

Also, the trade in values seem to be higher than what they normally are.

More of the latter. Supply and demand. Less people are shopping overall due to the pandemic, on top of GameStop's already flagging sales.

Less shoppers > less trade-ins > less inventory > more demand for trade-ins > higher trade-in value

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Far-Queue posted...

Less shoppers > less trade-ins > less inventory > more demand for trade-ins > higher trade-in value

I like how less shoppers leads to less inventory somehow.

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Veedrock- posted...

I like how less shoppers leads to less inventory somehow.

Ignorance really is bliss, huh?

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Veedrock- posted...

I like how less shoppers leads to less inventory somehow.

Guess you glossed over the "less trade-ins" part. Where do you think GameStop gets used games? The Used Game Fairy?

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Veedrock- posted...

I like how less shoppers leads to less inventory somehow.

Their inventory of used games comes from shoppers, so yeah. It seems counterintuitive, but it does actually make sense to some degree. That said, the lack of people buying games at all - used or otherwise - does make me question why they'd want to throw more money than usual at getting more games to sell.

I suppose, if they're anticipating going out of business, an inventory of games is still going to be worth more than even these elevated trade-in values would be if they just held on to their money, so maybe that's it. Worst case scenario, that allows corporate to make a quick buck by reselling everything on ebay for more than they paid to get them, and having fewer liquid assets could be helpful when bankruptcy is declared.

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In the 25 years of playing video games i have never sold a single video game. I'd rather give them away than sell them. I don't buy used either.

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Veedrock- posted...

I like how less shoppers leads to less inventory somehow.

That was already explained to you.

Judgmenl posted...

In the 25 years of playing video games i have never sold a single video game. I'd rather give them away than sell them. I don't buy used either.

I've for sure sold some and bought pre loved games but it's very rare.

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Judgmenl posted...

In the 25 years of playing video games i have never sold a single video game. I'd rather give them away than sell them. I don't buy used either.

I've sold a couple, and never gotten anything really good from them.

I also have had to buy some games used (way past being new) or it's way cheaper. No, I'm not paying $40 for a digital copy of a 4-5 year old game when I can pay $10 for a perfectly good and working physical copy.

Far-Queue posted...

Guess you glossed over the "less trade-ins" part.

You glossed over less customers mean less sales, which means more inventory.

Yall are ridic.

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Veedrock- posted...

You glossed over less customers means less sales, which means more inventory.

Ooooh but it was eXpLaInEd.

GameStop doesn't make much off of new game sales. They rely on used games and products to turn a profit:

https://www.fool.com/investing/2018/09/11/gamestops-most-important-business-is-in-trouble.aspx

But GameStop doesn't make much money from selling new games. Gross margin for new video game software was just 22.9% in 2017, well below the 33% gross margin for the company as a whole. The real moneymaker for GameStop is used games. Sales of pre-owned and value video game products sport a gross margin roughly twice that of sales of new video games.

Let me reiterate, since you seem unable to wrap your head around this:

Far-Queue posted...

Less shoppers > less trade-ins > less inventory

Obviously I'm not referring to new product inventory. Try to keep up, Speedy.

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Veedrock- posted...

Ooooh but it was eXpLaInEd.

It was actually explained. Most stock from places like Gamestop is trade ins or games been sold to them by customers. Less of that means less stock. TyPiNg LiKe ThIs IS AlSo DuMb.

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All I'm getting is you think Gamestop had zero used inventory going into covid. How else could you possibly think less customers means reduced inventory.

wwinterj25 posted...

TyPiNg LiKe ThIs IS AlSo DuMb.

You try as if a virgin could ever mock me.

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Veedrock- posted...

How else could you possibly think less customers means reduced inventory.

Go back and read what I posted until it sinks into that primordial lump resting idly and unused inside your skull

Couldn't explain it any simpler than I already have. It's simple supply and demand. Emphasis on simple. This is grade school economics, bud.

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You omit my response and insult me for it? Classic.

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Veedrock- posted...

All I'm getting is you think Gamestop had zero used inventory going into covid.

They didn't have zero used inventory overall, but they did have zero copies of games that have released since then and are popular enough for there to be significant demand for used copies of them. Switch games falling under that umbrella also makes sense because the Switch has been selling so well since this started (Animal Crossing really couldn't have released at a better time).

Further to the point about fewer customers, I'd also expect fewer people will have been bringing in their used stuff given that used goods are potentially risky in a pandemic situation. That's also going to hurt their inventory, as they'd still be selling stuff. With things reopening and people getting more comfortable about shopping, they're going to be facing higher demand, so they're pushing to bolster their supply to meet that.

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Now see, a response to my response.

adjl posted...

they did have zero copies of games that have released since then and are popular enough for there to be significant demand for used copies of them.

TC mentioned no such games so I wasn't considering them. Fair enough.

adjl posted...

With things reopening and people getting more comfortable about shopping, they're going to be facing higher demand, so they're pushing to bolster their supply to meet that.

Now this makes sense, I like this explanation. It's not about having less inventory than usual, it's about needing more than usual. Or for Q's sake, more customers > less inventory, something that actually computes.

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Veedrock- posted...

It's not about having less inventory than usual, it's about needing more than usual.

Maybe. But probably not. They also probably have less inventory if no one was selling because of COVID-19... I know some people were still buying. But a bunch also stopped selling. Whether it was because of a safety issue, or because they wanted to keep more games while stuck in the house. But I do remember some people not selling, but still definitely buying... And since a good amount of their inventory came from customers, it does make perfect sense that they would have less inventory. Its like how the less customers a consignment store has, the less inventory they receive...
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Veedrock- posted...

You try as if a virgin could ever mock me.

A child could mock you and it would still be valid.

Veedrock- posted...

Now this makes sense, I like this explanation.

Translated: Guys I like what I want to hear.
PS: I just mocked you again.
https://i.imgur.com/fCTk0.gif

Far-Queue posted...

Couldn't explain it any simpler than I already have. It's simple supply and demand. Emphasis on simple. This is grade school economics, bud.

You're not wrong so I wouldn't even bother anymore.

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You.. you guys know the website has been running as usual during this entire ordeal, right? They'd been steadily decreasing their preowned inventory for months through various deals with zero product coming in.

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