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Customers Vote on Used Game Stores

July 24, 2011

Used video game stores prey on the economic instability of the times by promising consumers a cheap alternative to the high prices of brand new retail games. As many unsuspecting customers soon learn, however, “cheap” is not always as cheap as it should be. With a constant stream of incoming inventory, low overhead, and no retail middleman to deal with, used game stores can make big bucks and have no qualms about increasing their profit margin by squeezing their customers a little.

There’s a lot of argument about how much used game stores hurt the game industry as a whole, but one subject that hasn’t seen much discussion is how much these stores cheat the average customer. Most of them set their prices just low enough to be cheaper than the new retail titles, often by just a few dollars, but they’re usually considerably higher than used games that can be purchased online through auction sites or third-party sellers on major retail sites. To anyone who’s paying attention, however, it has recently become apparent that the average consumer has noticed this trend and is starting to fight back.

Used video game stores in major cities are starting to see a significant decrease in sales, while online auction sites are seeing an increase in the number of used games for sale. One victim of this change in the consumer tide is a chain in Wichita, KS, called CD Tradepost. CD Tradepost once enjoyed plentiful sales thanks to their wide selection of games, movies, and music. They also carried used video game consoles for prices just low enough to make them look like a bargain. They opened a new storefront on the south end of the city, bringing their total to eight, just two years ago. But after only a year, sales died down, and regular customers started shopping online or purchasing new titles for just a few dollars more. That storefront closed six months ago.

Even giants like GameStop are finding themselves in a position where they have to struggle to keep the customers they have. The smaller stores don’t stand a chance unless they can undercut the used prices these larger businesses use. There’s still a steady trickle of income for these places, especially during the holidays, but customers are starting to vote with their wallets. And what are they voting for? A chance at a fair price for a used video game.

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