Michael Pachter says 100 million games traded in, not hurting new game sales

Hi, my name is Chad and I am a trade-in-aholic. It has been two weeks since my last trade-in and I feel the urge coming on again, especially since Wedbush Morgan released a report assuring me that I am not alone. The company estimates that 100 million games, making up about one-third of videogame sales each year, are traded in and rake in two billion dollars annually.

While that seems like a bunch of cash out of game makers’ pockets, the research reveals that as little as five percent of new game sales are impacted by the trade-ins. In fact, bringing games back for recycling might possibly lead to more new games being purchased. Our friend, Michael Pachter, says that  the majority of games are not brought in for trade until the original purchaser has finished the game, usually more than two months after initial release, which is “typically well beyond the window for a full retail priced new game sale.”

Pachter continues that the claims against retailers, like GameStop, leading consumers ready to purchase new games toward used games are generally untrue. He says that in actuality used game sales tend to increase new game sales by providing an alternative form of currency to gamers with less disposable income.

I find this very true, as someone who utilizes the trade-in system on a regular basis. The games I have finished playing, and will never play again, go toward my purchase of the shiny new game I am looking forward to. Anyone else on the trade-in train?

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