Analyst: Used Game Boom Correlates With New Sales Decline

An analyst report specifically blames the used videogame market for a decline in new videogame gross revenue, using some facts to back it up.

Analyst aggroup Cowen and Company have put together a report that links the increase in used game gross sales to a decrease in overall new software sales. Comparing the current state of the industry today to a similar full stop in the lifespans of the PlayStation 2 and the Xbox, the deviation is quite evident if the facts hold true.

Cowen notes that about 30 million people owned the PS2 and Xbox back in 2003, and around the unchanged amount of people owned the PS3 and Xbox 360 in 2009. The difference between 2003 and 2009 is that 106.9 million new games were sold in 2003, while 85.5 million were sold in 2009. That's close to a 20% worsen.

Meanwhile, over the Sami period old gimpy sales at retailers like GameStop take up increased substantially. GameStop itself sold $403 jillio of used games in 2003, and $2.39 zillion in 2009. That's roughly a 600% increase and GameStop is said to answer for for nigh 85% of the used games market. Far, Cowen analysts instant that ordinary second month sales of new games have fallen by 62% since 2001, sometimes reaching a 90% drop-inactive level for popular titles.

This is furthest from definitive proof but the cover does name second-manus sales as a key grounds for the declination in software program sales. Other factors include "stubbornly high hardware Price points," which probably refers to the PlayStation 3 launch toll of $599 for the 60GB model. Cowen name calling initiatives such atomic number 3 Ea's Online Pass and Visualise Ten Buck as a way to belie the decline in new gross revenue attributable used sales, and says that eventually consumers will accept these types of programs arsenic the norm.

Seed: Games Industry

https://www.escapistmagazine.com/analyst-used-game-boom-correlates-with-new-sales-decline/

Source: https://www.escapistmagazine.com/analyst-used-game-boom-correlates-with-new-sales-decline/