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Head Scratching pricing in gamestop.

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    #32
    Pacing Mule
    Registered Users Posts: 5,059 ✭✭✭Pacing Mule


    Nevore wrote: »
    400m profits in 2011 according to CNN. That's for the group as a whole. I wouldn't be surprised if individual subsidiaries posted losses year on year however, given the way multinationals tend to work. Any profits the Irish group might have made could easily have been funneled into payments to the parent.

    And likewise any losses made by the Irish group are subsidised by the parent.


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    #33
    stevenmu
    Moderators, Society & Culture Moderators Posts: 9,689 Mod ✭✭✭✭stevenmu


    I didn't think there was any VAT on the sale of second hand games, that's part of what makes them so profitable?


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    #34
    Helix
    Closed Accounts Posts: 17,661 ✭✭✭✭Helix


    stevenmu wrote: »
    I didn't think there was any VAT on the sale of second hand games, that's part of what makes them so profitable?

    what makes them so profitable is the fact that the publisher doesn't see a penny of the sale value


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    #35
    Absolam
    Registered Users Posts: 6,913 ✭✭✭Absolam


    Weeeell... Perhaps not so much so profitable as more profitable than new game sales. A new release game can make from 4 to 24 percent margin for a retailer. A preowned game can make up to 45 percent margin for a retailer, but the down scope (negative margin on those games traded in in promos at €45 and €49) is higher as well. So for retailers preowned has more potential risk, and more potential return. For the government, they get 23% regardless.... Best business model ever! Who could lose with a setup like that? Hmmmmm.


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    #36
    krudler
    Registered Users Posts: 34,788 ✭✭✭✭krudler


    Azza wrote: »
    I like the way they are still selling Tabula Rasa and Star War Galaxies still even though both of these MMO's where shut down and no longer work and in Tabula Rasa's case its been shut down several years.

    I was in hmv a few weeks ago and a guy in front of me was buying MAG second hand, the guy at the counter said as there may not be many people playing it online anymore he could return it if there wasnt many games to join, thought that was good of him, its gonna happen where online mp games have less people playing them, like some of the older COD games, still people on there but you could be sitting in a lobby for a few minutes before a game will start, happens on COD4 all the time these days


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    #37
    dmcg90
    Registered Users Posts: 2,777 ✭✭✭dmcg90


    krudler wrote: »
    I was in hmv a few weeks ago and a guy in front of me was buying MAG second hand, the guy at the counter said as there may not be many people playing it online anymore he could return it if there wasnt many games to join, thought that was good of him, its gonna happen where online mp games have less people playing them, like some of the older COD games, still people on there but you could be sitting in a lobby for a few minutes before a game will start, happens on COD4 all the time these days

    At least COD 4 has a single player campaign to play!


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    #38
    Pacing Mule
    Registered Users Posts: 5,059 ✭✭✭Pacing Mule


    Helix wrote: »
    what makes them so profitable is the fact that the publisher doesn't see a penny of the sale value

    Profitabillity is generally made up of the difference in price from what you pay for an item versus the price you sell it at.

    What makes pre owned game sales "so profitable" is that there is a marketplace where people are happy to trade in / sell their games to whatever retailer they are dealing with at a certain price point which the retailer is then selling on at a higher price. The same marketplace / consumers who are happy to sell for the prices being offered are also happy to buy at the sale prices being offered. That's why they are profitable.

    The impacts (both positive and negative) on publishers of the pre owned marketplace are a different debate.


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    #39
    Pacing Mule
    Registered Users Posts: 5,059 ✭✭✭Pacing Mule


    stevenmu wrote: »
    I didn't think there was any VAT on the sale of second hand games, that's part of what makes them so profitable?

    There is VAT included on pre owned game sales. A lot of people don't realise that and jump to the conclusion that the sale of second hand games is more profitable than it actually is. That's not saying it's not profitable - it's these profits that are keeping retailers open and keeping new game prices that bit lower.


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    #40
    mylastparadigm
    Registered Users Posts: 164 ✭✭mylastparadigm


    Pageant Messiah wrote: »
    There is VAT included on pre owned game sales. A lot of people don't realise that and jump to the conclusion that the sale of second hand games is more profitable than it actually is. That's not saying it's not profitable - it's these profits that are keeping retailers open and keeping new game prices that bit lower.

    yeah, i can tell you over the last few years 2nd hand games have come under scrutiny from revenue because its very hard to tell how much the shop paid for them (untraceable supplier). not easy to tell if vat is on them or not.


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