New vs. Retro Video Games. Why You Should Focus on Selling Retro Video Games?

Niquee Marketing, Video Games

If you haven’t decided on which video games to sell yet, here is some food for the thought process.

New Games:

There are a lot of different types of games out there, and some will be much easier to sell than others. So, if you can focus on the right direction, selling games becomes a much easier task overall.

For example, I would never recommend selling computer games. For one thing, these games are just too easy for people to get digitally. Likewise, they tend to be frequently copied, and many people merely download them illegally through torrents.

But, beyond this, there are many platforms where people can get discounts on computer games. For example, the Steam sales end up offering some games at a 70% discount or even higher. This can make it extremely difficult to compete.

So, here is why selling new video games is not such a great idea. Large retailers can deal in new video game systems and games due to their massive scale. Where most independent stores pass on that because of ultra-tight margins, and the high speed at which prices plummet when a new title’s shine wears off, often making the store lose money outright if they can’t shift that stuff within 30 days of release.

Used Games

If you’re going to sell games online, you might be better off with older devices and games. For one thing, these tend to fluctuate less in popularity, which makes them more predictable.

At the same time, older games are often not available digitally and may not be in production anymore. This means that the supply is lower and the demand higher, especially if you pick the right games or system. Retro gaming nostalgia is in full swing, so now’s the time to take advantage of this trend.

One example might be selling various versions of the Gameboy and Pokemon games online. These games have remained remarkably popular. Plus, with each new game release and television series, many people want to relive old memories or try the older versions for the first time.

Still not convinced that the best margins are in used games? Did you know that GameStop makes more profit on used games? You heard that right! GameStop is in the used game business. Let’s check out the profit margins from the quarter of 2017:

GameStop used Video Games

GameStop made $150 million in gross profit in this period on new games, with a profit margin of 24 percent. The company earned $218 million in used and “value” video game products in the same time, with a 43.6 profit margin. You can dig deeper, but the reality is — and likely always has been and will be — that GameStop’s profits from used games far outstrip the profits from new games. The bottom line: you should be focusing on used games.