GameStop Is Ripping You Off

GameStop's whole business runs on buying and selling used games. You think the price for older games is fair? Gamers often trade games at GameStop instead of dealing with scammers on Craigslist. This is a fact.

Most GameStop money comes from selling those games. The company prefers you buy used items over new ones. Management set a "Circle of Life" quota system. This forces employees to push used games more than new ones, even if it hurts the customer.

Kotaku interviewed GameStop staff. They admitted they often told customers things.Employees lied to customers. They claimed new game systems were unavailable. Customers bought used items. Employees sometimes misled customers to meet company quotas.Employees sometimes messed with customers to meet company quotas. They claimed new systems were gone. Customers had to buy used items.

Why do GameStop employees lie about new games? Missing a quota is bad. Would GameStop want employees helping customers instead of hitting a number? The company values staff who put the customer first.

However, there are problems.Many, many stories exist about GameStop employees fearing job loss or firing. GameStop has a constant supply of eager new candidates when jobs open up. The company does not need anyone.The establishment does not need anyone.Employees do not need anybody.The company does not need anybody.

That "Circle of Life" policy turns regular staff into used car salesmen. One employee shared this:

When facing job loss or selling unwanted products, we sell things guests don't want nine times out of ten. I worked two jobs until I became Assistant Store Leader because my pay didn't support my family. After getting that promotion, I quit my other job, and they launched Circle of Life.

Many employees meet sales quotas. This happens regardless of their personal morals.

Employees lie about new game copies, even if they don't lie about the count. They do anything to get you to buy used. Profit margins on used games versus new games are huge.

In the third quarter of 2016, GameStop made over $30 million more from used products than new ones.GameStop made $30 million more from used products than new ones.GameStop does not have many ways to make money outside of used game sales. Retailers like Best Buy or Walmart have more options. New games just bring people in the door.

New games yield GameStop 21 cents per dollar. Used games earn 34 cents per dollar. This 15% difference matters a lot.Used games earn 34 cents per dollar.That 15% difference has a huge impact.

People complain about GameStop's low trade-in pay. You could make more money selling elsewhere. People still trade for convenience, and GameStop still makes money.

For instance, trading in a used Xbox One X nets you $300 in store-credit or $240 in cash.$300 in store-credit or $240 cash.Employees block you from using the hyped PowerUp Rewards card. Rates stay the same, no matter your membership.

What does GameStop charge for a used One X? It sells for$480!That is $180 to $240 profit. If you bought the system new from them for $500, you gave them $200 free. That's what you lose moving from purchase to resale.

GameStop doesn't cheat you; the company bets you can't do simple math. Consider this: the GameStop reward card (PowerUp card) costs$15 a year gets you 10% off used games, or $30 a year gets you 20% off used games.Not bad, right?

Consider what that costs you. If you use the cheaper tier and spend $200 on used games, those games cost under $60 each since they are not new. That means you buy at least four nearly-new games. That is a solid amount for an adult gamer. How much money did you save?

You save only $5.

You save $20 technically. But with the $15 membership fee, you only keep five dollars total. Even using the 10% extra trade-in on the PowerUp card means you must trade in many games. Employees likely give you less than $30. This means you get less than $3 per trade-in.

In the long run, you save almost nothing.

If you are a kid buying video games, selling one means you want to immediately use that money for a new game. But if you are older and want to sell a few games for food, do not go to GameStop. You will likely get store credit, not cash.

The company claims customers getTrade for store credit gives you 20% more., but customers actually only get 20%You get less.When you trade in a game,Most employees say something like..., "Have you heard that cash isn't the only way to pay here at GameStop?" Then associates push the store credit as the better choice.

The store does not offer much money anyway. Taking the cash seems irresponsible. Even if you haven't eaten in weeks, buying a Wii U makes more sense than accepting the small cash offers.

Forbes ran an article about theTwo-thirds of customers do not understand what "trade-in" means. who do not grasp GameStop's trade-in rules. The article praised GameStop for finally admitting and simplifying the rules.

GameStop customers felt dumbfounded that their expensive games were worth so little during trade-in. The company boasted about deals gamers could count on, but customers felt frustrated. They never received those deals for random reasons.

The gaming hub now simplifies trades, claiming better money. Still, finding GameStop sellers who get fair pay remains tough.

How many people recall Babbage? What about Funcoland, EB Games, or Software Etc.? You skip those stores to grab the newest hot game?Elder Scrolls.GameStop crushes all other stores for the Elder Scrolls game.GameStop crushed all other establishments..

GameStop bought and rebranded other game stores. This practice isn't illegal, but capitalism pushes for competition. Now, GameStop dominates selling used games.

If customers buy a game from someone other than AngelSlayer666 online, GameStop is the only choice. GameStop sets all rules, giving small store credits for three-week-old consoles.

GameStop tried to emphasize that every used game bought online comes with the game art and manual.GameStop tried to emphasize that every used game bought online comes with the game art and manual.. That is fine, but it shows in-store, you pay full price even if the used game lacks original packaging. Should there be a discount for owning a generic case with?Halo 4.Scrawled across the top?

Online games get "packaged with love," but in-store items get shoved at you carelessly.

Like any pawn shop, GameStop buys much stolen merchandise. This is not entirely the store's fault, but company owners show no moral conflict either.The store's fault is not entire.Company owners show no moral conflict either. This caused intense GameStop crackdowns in places like Florida. Customers there must be fingerprinted. Not everyone likes being treated like a criminal, so Philadelphia places actually got rid of the policy.Gotten rid of the policy.They did this to stop consumer backlash.

In other states, GameStop locations ask for ID.GameStop locations ask for ID., but stolen goods won't return to original owners. GameStop gives criminals an easy way to profit from stolen goods.

Sometimes those people get caught.They do get caught., but many other criminals escape punishment.

GameStop employees get screwed over in many ways. Usually, employees get paid via direct deposit; the process is simple. GameStop adds an extra step.

The game company encourages employees to get paychecks through a Comdata card.The game company encourages employees to get paychecks through a Comdata card.. These cards often charge extra fees. The pay cards fail at all businesses and are hard to use at ATMs.

GameStop claims the pay cards help young employees without bank accounts, but that is false.

Many consumers dislike paying more than they owe for products. That is why bargain stores like MoviePass and Spotify exist. People get what they want cheap. These discounts are not always what they seem; for example,MoviePass sells.Some of your personal information, andSpotify does notalways pay artists fairly.

GameStop acts like game developers. The store supposedly sells used items to avoid paying publishers. Some developers claim this actuallyraises the price of new gamesbecause game franchises need money.