Pachter: DLC Codes Not Hurting Pre-Owned Sales

[Logan Westbrook]

Pachter: DLC Codes Not Hurting Pre-Owned Sales

Despite being designed specifically to make buying new games more appealing, analyst Michael Pachter says that Project Ten Dollar and its ilk are yet to make a dent in pre-owned sales.

Michael Pachter says that retailers haven't experienced any decline in their pre-owned sales since the launch of schemes like EA's Project Ten Dollar or the online pass for EA Sports titles. Speaking in a post-financials report of GameStop, Pachter said that the retailer estimated that only a quarter of gamers who bought used games played them online, so having to shell out for things like the online pass wasn't much of a disincentive.

But while the DLC bonuses might not have hurt retailers, Pachter doesn't think it will especially help them either. Again speaking about GameStop, he believes that the company's attempts to sell DLC via in-store kiosks would not be a major boost to sales, despite having exclusive content like Spartan armor for Halo: Reach. Instead, he thought it would, at best, "forestall the inevitable cannibalization of physical disc sales and allow GameStop to capture a small percentage of this cannibalization, with relatively insignificant margin contribution."

There's always going to be a place for physical game sales, just as some people will prefer physical books over e-books, but as Pachter suggests, the balance will eventually shift over to digital distribution as people become more used to the idea. Exactly when that will happen, however, is very hard to say.

Source: MCV [http://www.mcvuk.com/news/40547/DLC-codes-not-denting-pre-owned-sales]







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[the_pleasure_is_mine]

I thought the main point of Project Ten Dollar was to get back some of the money lost on pre-owned sales.

People will always buy pre-owned... the best you can hope for is to make some of that loss back... not entice people to change their ways.

In fact I'm going to go right ahead and say once again 'Patchers words are't newsworthy'.

Why are we even still listening to this guy...

 

[Wakefield]

I really don't think I'll ever prefer having a digital copy of my game over a physical copy but who's to say?

Also I'm sure it wont effect them that much, people who buy used will buy used simply because maybe they can't afford it new. That sure wont change even with the extra bonus's.

 

[squid5580]

The question is has there been an increase of the actual sales of the DLC. To me it seems that "project $10" is half encouraging new sales and half recouping the loss of used sales. So if they aren't seeing much of an increase in new sales while no decrease in used sales that is only half the equation. How many sales are they seeing for "Stone Prisoner" or "Cerberus Network"?

Guess he had to make up some shit. It has been a few days since he opened his trap to let the stupidity out. We don't want to be around if it reaches critical mass.

 

[GonzoGamer]

They're really going to have to gimp out their "on disc" versions of games to make it affect used sales.
What is a good idea are things like bonus dlc for pre-orderers. I pre-ordered 2 games this year for bonus dlc and I never used to pre order games.

 

[Chamale]

Makes sense to me. When I buy an old game, I know I'm getting less value than when I buy its sequel. Many customers of used games don't mind getting older versions of long-running franchises, and therefore won't mind missing some DLC.

 

[StriderShinryu]

The question is has there been an increase of the actual sales of the DLC. To me it seems that "project $10" is half encouraging new sales and half recouping the loss of used sales. So if they aren't seeing much of an increase in new sales while no decrease in used sales that is only half the equation. How many sales are they seeing for "Stone Prisoner" or "Cerberus Network"?

That's something I wonder as well. I didn't think things like Project $10 would have a big impact on used game sales, but I am curious if it's actually doing anything to help the game companies. I would hope that it is working in it's current form as I'm sure we all can agree that if it's not we're much more likely to just see even deeper cuts to initial on disc content than we are to see companies toss the idea altogether.

 

[Icehearted]

It would help if the DLC one gets wasn't laughably minuscule. I pre-ordered Mass Effect 2 because I enjoyed the hell out of the first one, but the DLC that came free was a joke. Had I been a lesser fan I can most assuredly say that I would have bought it used.

This has taught me that there's nothing to fear I'm missing out on as far as content goes. If the rest of the $10 "projects" are just as vanilla, I will remain indifferent to the whole thing entirely.

 

[squid5580]

I thought project $10 would make people keep their games for longer so they get free DLC. Like with Mass Effect 2,BFBC2 and all the EA sports game.

Maybe if they did what Alan Wake did and give you a code that when you enter it tells you that you will get your DLC in a month (if you bought it on day 1). But when you get the free DLC on launch day then there is no incentive. Especially if it is only an hour or so long. Although I do think they are trying to use achievements/trophies to keep them off the used game shelves. It is the only explanation for some of them.

 

[squid5580]

It would help if the DLC one gets wasn't laughably minuscule. I pre-ordered Mass Effect 2 because I enjoyed the hell out of the first one, but the DLC that came free was a joke. Had I been a lesser fan I can most assuredly say that I would have bought it used.

This has taught me that there's nothing to fear I'm missing out on as far as content goes. If the rest of the $10 "projects" are just as vanilla, I will remain indifferent to the whole thing entirely.

What??? Do you realize what they gave you? They gave you the Cerberus Network code which in itself is a store front. Then they gave us Zaaed, some weapons and armor, and 6 Hammerhead missions.

 

[AfterAscon]

Although project ten dollar was designed to encourage people to buy new, they have failed to communicate the benefits of it to Joe Bloggs. We, as gamers, only know about it because of the endless news stories about it. Whereas, looking at the BFBC2 box, EA have only put a single meaningless sentence on the back, which I?d imagine most people wouldn?t notice.

If they want it to be successful they need to raise awareness of it's benefits.

 

[Shamanic Rhythm]

I was about to buy Dragon Age the other day, when I flipped over the box and noticed that the DLC code expired on the 18th of April, 2010. I was so annoyed at the thought of being denied content I was paying full price for that I refused to buy it after that.

The irony is that a pre-owned copy would now have the same amount of content, and be cheaper. So I'm not surprised - but then Patcher is Mr Stating the Bleeding Obvious of the gaming industry.

 

[Orcus The Ultimate]

DLC hurting Developpers Integrity, and feeding Gamers Wrath...

 

[Orcus The Ultimate]

Ok bare with me. Here's a thought. Where are all the used Blu-Rays on the Highsteet? Where are all the used DVDs? Why is it that GAME has as much floorspace devoted to used as new yet HMV and the like have none for DVDs/ Blu-Ray? The reason is this;

[HEADING=1]New retail games at £40-50 a pop are too dammed expensive![/HEADING]

THIS is what supports the massive used game market. Do what every other industry in history has done and lower yout prices because the market is setting it's own, lower price in the form of pervasive and growing used games sales. Tesco is starting a used game section for christs sake! Want more legit sales? Stop charging more for the shorter and shorted games. a 4 hour game with a luke-warm multiplayer is not worth £45. It never will be, people will buy it used for £20 or rent the thing.


To be honest none of this DLC is "Must have". Project $10 is a failier becuase 1) many pre-owned titles are more than $10 less expensive and 2) many people will buy the game not knowing about it and just get scewed on the back end. In terms of a solution it is, yet again, placing pay-walls in the face of cunsumers who are making it known will million of pre-owned games sales that games are just too dammed expensive for most people at full reatail price.

i can just agree and support your comment buddy!

 

[AndyFromMonday]

Snip

This man speaks the truth. £50 for a game is absolutely ridiculous.

 

[viranimus]

This smacks of "You the consumers are wrong, and we have to educate you on how you are wrong.

What exactly is with this being such a dire thing over the last couple years for developers? If im not mistaken every year the industry grows and sees more money than the last. So why was this a non issue for the previous... six console generations, but now they are becoming outspoken and dare I say indignant about it.

Perhaps it is just me.. But I wonder if the catalyst for this is MMOs. Developers saw that MMOs had a model where there was basically no such thing as a used resell market and thought... Uhhh.. Why arent we getting that? without ever taking a moment to consider why there is a difference, or consider having to offer the same levels of content as MMOs.

 

[Dioxide20]

EA's Project 10 Dollar hasn't really given anything worth 10$.

"Buy this game new, get a special code that adds a character that has no effect on the actual game, as well as one that gives you this neat hat!"

Put something worthwhile in the new games, and maybe it would have an effect.