Value Games: Your Secret Profit-Making Weapon

 Understanding the "what, how, and when" of the value game business, can make a large difference in a retailers sell through and profit margin.

For starters, it would be helpful to define what exactly is meant by a value video game. A value game is any game that is not a new release, and has come down in price (typically $29.99 and below).

The popularity of value games is growing on a yearly basis. This is mainly due to four factors:

1. There is a large installed base of 2nd generation video consoles.

2. Each year there are a large number of new releases; consequently, “not so new,” new releases often undergo a “premature” reduction in price.

3. Many of these “not so new” value games are still very popular and some are/become classics.

4. Economic factors have many gamers seeking lower cost products for their entertainment dollars.

The “Sweet Spot” of Profitability

 Not all value games have the same appeal to the consumer and to you, the retailer. Some titles maintain their value, and because of this, with time, their profitability goes up. Other games go down in price, not only because they are being replaced by new releases, but because they are not big sellers to begin with. Differentiating the "good" value games from the "not-as-good," will determine their sell-through and ultimate bottom line dollars to you.

The chart below illustrates how popular value games, get more profitable with time.

The Important Thing is Having the Right Games,
Not Just the Right Priced Games

With so many  new releases coming out every year there are hundreds of value titles. Being able to separate the good from the not-so-good is extremely important. Just because a game is old and inexpensive, does not mean that its worth matches the reduced cost. Family-friendly licenses  for instance, like Barbie, Lego, Cooking Mama and Dora the Explorer have a wide appeal and maintain their popularity and value for longer periods. In fact, although they may be more expensive than other titles, they are actually a better buy.

When you join the Value Game Alliance (VGA) you will get only the most up-to-date, best-selling value games.