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posted by malloc at 01:13 pm on 2008-03-07

Forbes: Gamestop has used-games recession edge

Forbes have said that no rival can touch Gamestops's used-game business and that their outlook remains bright over the near term. Forbes believe that any "pressure on new game sales arising from deteriorating consumer spending trends should be offset by used-game sales as shoppers seek to save money."



quote:


Yet no rival can touch GME's used-game business. Indeed, Electronics Boutique represented the only real threat in this area. Furthermore, GME's Edge program promotes customer loyalty by awarding bonuses for trade-ins and purchases. In addition, pressure on new game sales arising from deteriorating consumer spending trends should be offset by used-game sales as shoppers seek to save money. This bodes particularly well for GME, since profit margins on used game sales are more than double those of new titles.



News Source: forbes






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