Game Not Over: Why Reselling Video Games is Still Profitable
Featuring Rajib Saha
A new study explores what makes companies like Sony, Microsoft support a secondhand market for video games.
July 08, 2025
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Rajib Saha
Associate Professor of Information Systems. His research focuses on the economics of IT, data mining, and digital business models. He particularly examines issues related to platforms, pricing and delivery of digital goods, B2B contracts, and network analytics.
Key Takeaways
- Using a game-theoretical model, the study shows that a secondhand market can benefit manufacturers’ profit.
- A two-part pricing strategy-lowering game prices and raising console prices-helps manufacturers balance competition from the used games market.
- The study assumes that gaming consoles are valuable for reasons beyond just playing games, such as serving as media hubs.