For many years now, GameStop has been selling pre-owned games for only $5 less than the new price. Used consoles aren't much less, either.
But as GameStop divisional vice president of refurbishment John Daugherty told GameSpot , if consumers saw what goes on behind the scenes, they'd understand why the retailer charges what it does for used titles. Said Daugherty:
"[The refurbishment process] does have a cost to us, which is kind of the behind-the-scenes thing that the consumer never gets to see. They see what we offer in trade and they see what we sell it for. They don't see the process behind the scenes. If they were more aware of that, they would [say], 'It makes more sense to me now. It makes more sense to me why the prices are what they are.'"
GameStop CEO Paul Raines has said that the refurbishment center is a "major part" of how the company finds success in the pre-owened market, which isn't surprising. But could someone enlighten me? When I worked for EB back in the late 90s, the only things that got shipped to the refurbishment center were traded-in consoles. …games certainly didn't. We just looked at the disc and if it seemed okay, we'd take it in. Don't they just do that now? Or do games go to the refurb center, too?
Because if they don't, I don't get Daugherty's quote at all. The center has no bearing whatsoever on games traded in, if they never leave the store and employees just turn around and put a used sticker on a traded-in game, and then put it on the shelf. How does that cost them more money? They must only be talking about products besides games, yes? But when compared to used software, isn't used hardware and accessories a small part of their pre-owned business…?