Extensive overview of GameStop reveals rising profits, world domination plans
Posted by: in Xbox360
Looking at this examination of GameStop’s sales over at Gamasutra, it’s hard to not get frustrated thinking about how much money the used game monolith is making on our undying urge to play “the next massive thing.” Pulling figures from the 10-K filings made each year by the company with the US Securities and Exchange Commission, Gamasutra noticed some interesting figures. Notably among those: “between 41 and 46 percent” of the company’s gross profits are coming from used game sales alone.
And how much is the company making, on the dollar, for each dollar they invest in the used game market? According to the analysis, GameStop is making 48 cents on each 100 spent in the used games trade — a nearly 50% profit margin on a service that accounts for “22 percent to 28 percent of GameStop’s revenue.”
Though GameStop’s plans for world domination weren’t explicitly spelled out in the 10-K, we anticipate to hear more about them in the coming months. Alright, alright — fine, you got us. GameStop isn’t planning global domination … yet.
Extensive overview of GameStop reveals rising profits, world domination plans originally appeared on Joystiq on Wed, 29 Apr 2009 22:00:00 EST. Please see our terms for use of feeds.
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