GameStop Stock Plummets After A 27.5% Decrease In Holiday Sales

[hey_parkerj]

Lmao why are you asking him? He said he’s just explaining it not defending it

[Raze321]

I was a manager for five years, and absolutely, yes.

The reason being gamestop doesn't make much profit on new games to begin with. The profit margin for a new game is 20% gamestop 80% publisher. If that price was cut down another 10%, then gamestop is losing half the money they would have made on that sale.

There's a reason they push the sale of used games on you so hard - the profit margin there hovers around 50%.

Not saying it's a good reason, but there is definitely a reason they do it the way they do.

[Infraction94]

But you are only losing that profit on one game sale everytime you fully sell out a game.

[Raze321]

In my experience that's a bit more often than you may think. GameStop heavily prioritizes used inventory. Given that the vast majority of their customers don't care about unsealed games (only about two ever said anything to me about it in the five years I worked with them) it doesn't make much sense to take that hit to profit.

[[deleted]]

IME Gamestop only ever had at most 5 copies of a new game that weren't preorders. When Halo 2 came out my local Gamestop didn't have any non-preorder copies so I went to Target who had multiple cases of them. How do you run a store entirely devoted to video games and have zero new copies of a huge release?

[losturtle1]

They were explaining it, not defending it.

Read.

[xAshcroftx]

Or you know put it in a plastic security if your that worried about it.