2 min read

No Impact On GameStop's Used Games Biz From Online Pass?

GameStop says new measures like EA's Online Pass that discourage used game sales can only benefit the retailer's business -- and that it won't impact their margins on used games, either.
While paid online codes such as EA's recently-announced Online Pass are partially aimed at discouraging used game sales, GameStop says such moves will benefit it. GameStop, which today reported a margin of almost 50 percent on used products, says that the more DLC publishers offer, the better its business will be. "We see that as extending the life of titles and broadening the base of players," explains CEO Dan DeMatteo in a quarterly conference call. "We do not anticipate an impact to our used game margins." Furthermore, DeMatteo suggests that tactics like Online Pass will help publishers "better leverage their [IP]... through downloadable content sales to both used players and new game buyers." Helping publishers market and sell online content benefits the retailer, says DeMatteo -- for example, when it promoted Modern Warfare 2's Stimulus Pack map bundle in its stores, it sold notably more Xbox Live point cards, DeMatteo said. "GameStop consumers are ahead of the mass market in digital adoption," he adds. "Our investments in proprietary point-of-sale tech have put us in a position to partner with publishers as they grow their digital offerings." And working with publishers to market, promote and sell DLC "extends the reach of the GameStop brand as a multichannel game destination," according to DeMatteo. "We're having convos with multiple publishers on leveraging the potential of digital sales at GameStop stores."

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