How Profitable Is A Game Store? (Updated for 2024)

Updated: June 15th, 2024
Start A Game Store

How Profitable Is A Game Store? (Updated for 2024)

So you want to start a game store?

And the first question that came to your mind was, “well, are game stores actually profitable?

With a market size of $48.2B - there’s plenty of business to go around.

Especially considering:

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a game store.

Let’s dive in!

Is a game store profitable?

Yes, a game store is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $50.4K per year with an estimated gross margin of 40%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your game store.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your game store is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a game store worth it?

If you’re wondering if a game store is worth it, the answer is a big YES. With game stores, you have the potential to earn $50.4K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $48.2B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a game store to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful game stores case studies.

Examples Of Profitable Game Stores

Here are a few examples of profitable game stores, and a few more details about them:

1. Speedcube New Zealand ($50.4K/year)

Oliver Jenks came up with the idea for his ecommerce store, speedcube.co.nz, after realizing there was no dedicated online store for speedcubing puzzles in New Zealand. With his knowledge as a speedcuber and experience working in a furniture distribution warehouse, Oliver saw an opportunity to fill a gap in the market and create a profitable side hustle.

Is it profitable? Yes
How much money it makes: $50.4K/year

How I Started A $4,200/Month Competitive Puzzle Store Working 1 Hour A Day

A 21-year-old student started an e-commerce store that sells "speedcube" puzzles and has grown it into an annual 5-figure profit side hustle that requires only an hour a day, with over 3,000 loyal customers and successful pop-up stores at speedcubing competitions and weekend markets.

Read by 6,838 founders

Learn more about starting a game store:

Where to start?

-> Game store plan
-> How to finance a game store?
-> How much does it cost to start a game store?
-> Pros and cons of a game store

Need inspiration?

-> Other game store success stories
-> Examples of established game store
-> Marketing ideas for a game store
-> Game store names

Other resources

-> Game store tips

How much can you make with a game store?

With a game store, you can make an average of $50.4K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $500. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a game store make a week?

Based on our data, average revenue for a game store ranges around $60K. As such, you could see monthly revenue if $240K.

To know if your game store achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your game store.

How much do game stores owners make?

The income of a game store owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established game store is about $60K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a game store owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Game store Profit Margins

Generally speaking, a game store can expect profit margin of around 40%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a game store, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, game store owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, game store owners can ensure long-term sustainability and profitability for their business.

Game store owner salary

The salary of a game store owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established game store, in a prime position, might see an average weekly salary around the ballpark of $24K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, a game store is quite promising if you plan on starting such. With a market size of $48.2B, you can enjoy a potential revenue of around $50.4K per year with a gross margin of 40%.

Considering this information, you can enjoy a return of investment within 7 months, especially if you have a monthly profit of $95.9K. Overall, the success of your game store also depends on your effort and knowledge about it. If you persevere with these things, you can ensure that this game store is profitable.

Make sure you have a proper game store plan and know how to get clients for your game store.