How do used game sales work? First a shopper picks up a game for say $50, and after playing it, simply doesn’t want it anymore. A store that buys and sells used games, like GameStop, will offer that person a figure far less than the original $50 they spent on the game (we’ll go with $20 for now), and though the person selling their game might be disappointed in losing some money, at least it’s not the full amount they put down in the first place.

Now comes the used game sale. The store is able to charge whatever they want for this title, because it being used, no longer has to follow the MSRP (Manufacturer’s Suggested Retail Price). If the store wanted to, they could actually make the used game higher (which usually wouldn’t make sense, but sometimes happens in the case of highly collectible titles that aren’t available new anymore).

The retail shop may realistically sell this once $50 game for $45. This means that they made a $25 dollar profit off the game. You multiply this times millions of gamers and millions of games, consoles, etc., and you quickly see how this business is a lucrative one. You might ask though, “shouldn’t selling a new game for $50 bring in 50 bucks for the store?” The answer is no, because if that was the case, how would Nintendo, Capcom, and other video game developers, publishers, etc., make their money? They wouldn’t.

The truth is, when a game comes out for $50, you end up paying $54 (that extra portion is for tax), and of the first 50, maybe 47 dollars goes to the company that made it, and only 3 bucks to the store. Now which would you rather make if you’re a store: 3 bucks for selling a new game or 25 for selling a used game? The answer is obvious.

If this whole process still doesn’t make sense, think of these stores that sell used games as your own garage sale. You make the price whatever you want it to be, because it’s yours, and you don’t have to follow a price set up by the original group that made your belongings. It’s because of this profitable model that Toys R US is entering the used game market.

It looks like GameStop is getting some competition.

As for me personally, unless the used game is far cheaper than its new counterpart (which doesn’t happen until a game has been out for a while most of the time), I always spend the $5 more and buy my games new, because I want to support the people that made it first and foremost…plus, I like my collection looking prestine.