Best Buy Challenges EB Games For Used Videogame Market

Best Buy Challenges EB Games For Used Videogame Market

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EB Games will be facing off against some new competition now that Best Buy has announced its entry into the pre-owned games business in Canada.

The company plans to begin the initiative with a test run in six Future Shop stores in Calgary, according to a Report On Business article, with plans to expand across all 133 Future Shops in the country by the end of the summer. The move will bring Best Buy into direct competition with GameStop-owned EB Games, currently the only major Canadian retailer that sells used games.

"The used games market has been very lucrative in the United States and I'm not surprised that it's making its way into Canada," said Jason Kee of the Entertainment Software Association of Canada. He added that used game prices can approach those of new games, or even exceed them if the game in question is in limited supply. Unlike new software, pre-owned games offer much greater profit levels, with GameStop seeing margins approaching 50 percent.

Michelle Grawe, director of merchandising at Future Shop, said the company hopes the addition of pre-owned game sales will attract younger customers to the store, and predicted the new category will help double its videogames sales over the next three to five years. She added that Future Shop was prepared to accept lower margins on used game sales in order to undercut EB's prices. The company also plans to offer used game sales over its website by early 2009.

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Good for me, being a Calgarian, but isn't the used game market basically considered a hustle at the moment? I can't help but wonder what Future Shop intends to do differently.

What do you mean by "a hustle?"

The whole EB takes in used games and only gives store credit basically keeping all $ in the store and ensures that game companies see almost no money from used game sales and you can't actually get money from EB, only more games.

The margin on software sales is pretty tight, so I don't mind seeing EB rake in a little extra through the sale of pre-owned games. And since my finances are also pretty tight, I don't mind seeing used games on the shelf for less than their virginal cousins. I agree that there are some flaws in the system but overall I'm very much in favour of it.

None of this is very relevant. I'm a Blockbuster man :)

I don't buy used games; from what I've seen, most people tend to treat their games absoltuely horribly.

HalfShadow:
I don't buy used games; from what I've seen, most people tend to treat their games absoltuely horribly.

True, but depending on where you buy your used games, that's not an issue. For instance, at my Gamestop, when I went to trade in games, half of them were rejected because the storekeeper saw scratches that could possibly interfere with the game. Also, none of my used games that I bought were scratched.

Can't you just look at the game first to see what you think of it before you buy it? I've never had a problem, but I was looking at one recently at EB (and now I'm going nuts because I can't remember what it was) and it was beat to absolute shit; I told the EB guy thanks but no thanks, and that was that.

Ooh, I remember. It was Condemned.

I think this is great news, and I think it could be great for the industry as well, as long as the big players are willing to adjust to it. There's a lot of pie to be sliced here; publishers' efforts to stop used game sales aren't going anywhere, so they'd be a lot smarter figuring out how they can get a piece for themselves.

Here's a link to some thoughts I had about last year: http://www.escapistmagazine.com/articles/view/editorials/1384-Psychonauts-and-the-Tragedy-of-Used-Games

If it was in Australia, it would just be another way to bleed the Aussie gamer dry. Though, if you guys think it's good for the Canadian market, then great.

I hope they come to the US- I'd like to see a little more competition in the used games market since Gamestop bought out EB games.

Yes, thank god. Finally I don't have to go millions of km away just to go to EB Games to get used games, when there's a Best Buy right beside me. It's also good to see a little competition for used games now. Right now EB Games are the lead contender and I highly doubt Blockbuster is doing well with used games, with the amount of games they even have.

Malygris:
Can't you just look at the game first to see what you think of it before you buy it?

I do. That's why I don't buy used games. I've seen some that look like they've been eaten on.

 

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