Report: Toys R Us Moving Into Used Game Business

March 3, 2009 -

Major retailer Toys R Us has apparently begun accepting used game trade-ins and offering store credit in exchange.

The news comes by way of a report on Cheap Ass Gamer:

I was at Toys R Us today and I saw this sign by the door. I'm not exactly sure when they started taking in trades. I didn't specifically asked but I did [see] some games on one of the walls in the R Zone. I think at this time they are only giving store credit for all trade-ins.

I think its a smart move seeing as how Gamestop took $8.8 billion in 2008 in over all sales but mostly in used game sales.

Basically the fine print states that they will not take games that are rated "A" and games must be in their original cases. I'm pretty sure they do but I hope they don't. Oh, and make sure the disc is not cracked (lol).

GP: Cue the usual whining about used game trades from certain quarters of the video game biz...


Comments

Re: Report: Toys R Us Moving Into Used Game Business

This won't take off.

 

It was test marketed at my old Toys R Us and it failed.

Re: Report: Toys R Us Moving Into Used Game Business

Those damn pirates!!!

Re: Report: Toys R Us Moving Into Used Game Business

If this takes off, we will need a third competitor, that is normally when the consumer wins.

Re: Report: Toys R Us Moving Into Used Game Business

There is plenty of competition. I have three differnet franchises, GameXChange, Vintage Stock and Game Haven(I think that is what it is called) within 15 minute driving range that deal primarily with used games. I can trade in and buy games at any of these store. I also have Gamestop and Hastings on top of that and now Toys R US that deal in both used and new. So I have six different franchises to trade and buy use games with three of which dealing in 100% used games.

But what is really interesting is that none trade or sell used PC games and any that sell new games do not deal with anything older than last generation.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: Report: Toys R Us Moving Into Used Game Business

To say nothing of the user-driven market on sites like eBay and Amazon, especially if you're trying to find rare releases from well back in the olden days like EarthBound or Final Fantasy: Mystic Quest.

---
The Mammon Industry

---
Fangamer

Re: Report: Toys R Us Moving Into Used Game Business

Why on earth would anyone want Mystic Quest? The game was crap. I laugh everytime I see it for sale at $5 or more.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: Report: Toys R Us Moving Into Used Game Business

This isn't the first time they did it.  I foolishly traded in my Genesis collection for an N64 with Mario 64.

But I will say this.  Why is GP sooo damn bullish on the used game market.  Yes, cars allow you to sell your car to a new owner and even trade up to new cars.  But the Apples and Oranges thing applies.  For example, Ford will never force me to trade in 3-5 cars and even spend a little more to get a new car of same value.  Likewise that car I just traded in doesn't suddenly double or triple in price for the person who buys the car next.  I know it seems like an easy way out to bash game developers who look at their livelyhood being pushed on consumers in a way that cuts them out completely but c'mon.

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Re: Report: Toys R Us Moving Into Used Game Business

Have you ever traded a car in before? Often you get a third to a half of what KBB says you could get if you just sold it to a third party yourself. Then when the car does go to sale by the dealership or one of the used car dealers that buys it, they will sell it for an extra 25% on top of KBB. If anything the used car market is worse than game stop.

But if you really want a comparison, take movie, music, and book used markets. They are much the same way, get pennies on the dollar for the trade, they mark them up 500% to just under what it would cost new. Very few industry reps from those industries complain about the used market and those that do are not nearly as vocal about it. The main difference is that those markets have gotten used to the idea of First Sale and just deal with it.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: Report: Toys R Us Moving Into Used Game Business

>Basically the fine print states that they will not take games that are rated "A"

I'm assuming they mean "AO", right?

Re: Report: Toys R Us Moving Into Used Game Business

Well that's a stupid policy. Are there even any AO games in circulation right now?

---You are likely to be eaten by a Grue.

---You are likely to be eaten by a Grue.

Re: Report: Toys R Us Moving Into Used Game Business

Well considering Toys R Us does not sell PC games, no.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: Report: Toys R Us Moving Into Used Game Business

Except certain copies of San Andreas...

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Re: Report: Toys R Us Moving Into Used Game Business

Used games wouldn't be so bad if they didn't help in keeping the price of new games high. It's a very profitable business as there is this perception in the games industry that people should get rid of any game or system that is considered "old". I'll never understand this disposable attitude to games.

Re: Report: Toys R Us Moving Into Used Game Business

Used games don't keep game prices high. They are one of the things actually keeping game prices as low as they are. It is called competition. Without the used games market the only option for people to buy games would be the new market. So when there is only one option, prices will rise.

Study economics a bit more.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: Report: Toys R Us Moving Into Used Game Business

If used games are keeping game prices low, then why is Gamestop the most expensive place to buy games?  I mean no offense to the point you were trying to make but they are the last to drop price and the used version usually only saves you a few dollars.

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Re: Report: Toys R Us Moving Into Used Game Business

I don't consider them any more expensive than any where else. Walmart's 2 cents cheaper price is not really a savings. But I have never noticethem drop the retail price any slower than any other store.

AS for the used price, it is based on two main factors, popularity and supply. The first is more weighted than the second. The more popular the game is, the higher the price is. The more they have in stock, the lower the price is. So a game like SFIV which is quite popular will only be a $5 savings, while a game like some random party game crap for the Wii will be about $10-15 cheaper.

It is all variable. If for some reason they start getting a huge influx of used trades on a game, the resale price will drop depending on how fast they sell it. If they are selling a trade at the same rate they are getting them in, they wil have a higher price, but if it takes longer to sell than to fill it, they will lower the price.

Again, this is all simple economics.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: Report: Toys R Us Moving Into Used Game Business

www.cheapassgamer.com

Go there, you are apparently in great need...

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Re: Report: Toys R Us Moving Into Used Game Business

Either way I think game prices should lower. I don't wanna pay $60 for a game that I'll probably only play for a little bit (given the quality of games today), I'd rather pay $40. or $30.

-If an apple a day keeps the doctor away....what happens when a doctor eats an apple?-

-Optimum est pati quod emendare non possis-It is best to endure what you cannot change-

Re: Report: Toys R Us Moving Into Used Game Business

The $60 price you are paying for the game has two major factors and severl small almost meaningless factors. The two major factors are increased production costs (ie bloated budgets) and next generation console perspective. This first is directly relevant while the second is because they can get away with it.

The less important factors fall into two catagories, 'directly related but still minor' and 'they wish this actually affected cost like they say'.

Under directly related but still minor are used game sales. While yes there are some loss in sales, there is no loss in number of audience members. Everytime a game is traded in, the company loses one audience member, but they gain one back every time that game is bought agian. There is no gain here, but there is no loss either. If there was no used market it would still be the same, but there audience number will be skewed because they are still counting games that were sold but never played.

Under they wish this actually affected cost like they say is piracy. Piracy cannot fully be judged on its effect on cost. The key reason is the number of people downloading no-cd cracks or DRM cracks of games after they bought the retail version skews the results. The same for people who download the pirate game to try before they buy. So you can't get an accurate picture of how many lost sales you have from piracy bacuse a significant protion of piracy is from people who have or will buy the game.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: Report: Toys R Us Moving Into Used Game Business

I would dissagree with you here. Game prices are at $60 because that's what publishers want to charge for them, in spite of all sorts of evidence that points to $60 too high a price point for games.

Valve found that when titles were put on sale in Steam that unit sales were increased anywhere between three hundred and thirty six thousand percent and when SEGA priced NFL2K5 at $20 they saw a unit sales increase of eight hundred percent over NFL2K4. From a sales revenue standpoint SEGA made more money off of the lower priced NFL2K5 than they did from its more expensive predecessor. Things like this and the success of the used game market all point to the demand for games being elastic, in which case publishers would actually make more money if they lowered prices. 

Re: Report: Toys R Us Moving Into Used Game Business

I would dissagree with you here. Game prices are at $60 because that's what publishers want to charge for them

That is what I was getting at with the next gen console perspective. This new generation of consoles really added nothing to the production cost of games but they raised the price anyway. that is why it is all perspective.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: Report: Toys R Us Moving Into Used Game Business

I dunno, it probably costs more to develop for the Wii, since they have to hire waggle specialists.

(Don't take me seriously, my facetious is showing.)

---
The Mammon Industry

---
Fangamer

Re: Report: Toys R Us Moving Into Used Game Business

 >Cue the usual whining 

Except that wasn't whining, merely identification of something that was happening. I don't believe that GP is a biased source by any means, but this one isn't something that is difficult to get into your head, GP. Stop interpreting things to support your agenda.

/b

Re: Report: Toys R Us Moving Into Used Game Business

To be honest, I think it's pretty wellestablished that anything after "GP:" is the editor's opinion, and in no way intended to be an objective summary.

Re: Report: Toys R Us Moving Into Used Game Business

This isn't a newspaper. It's a news blog. Yes, he has to report on the news in a fair and balanced manner, but he's also allowed to state his opinion (and he's pretty clear that it's his opinion as opposed to say... fact).

Re: Report: Toys R Us Moving Into Used Game Business

No offense but aren't you doing the same?

Re: Report: Toys R Us Moving Into Used Game Business

While yes, he did suggest ways to compete, he did whine about having to do it.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

 
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