Here's the main issue:
A new game comes out at $60 - Due to publisher and other agreements, the devs get maybe $5-10 of that. Which is a whole other issue, but doesn't help the rest of this.
A person buys that game, plays it in a few days, and then sells it to Usedstop for $20-$30.
This game is still new, so the store labels the now "used" game at $55. Barely undercutting the still newly released game.
A person comes into the store a week after the game has released and sees it available for $5 under everything else. Why wouldn't they buy it at the cheaper price, that's money they can spend on lunch!
Now, a few things happen:
- The developer has lost a legitimate sale from a person intending to buy the game new. This is the main concern in this whole debate. Nobody is arguing about old used games in the bulk bin for $15 each. Those are practically vaporware, and the traditional concept of "used" games. Cheap and plentiful.
- The customer gets what they think is a "new" game. It was practically full price, and had a nice little discount that offset sales tax a bit. They're going to possibly play online on dev funded/hosted (and by dev funded, I mean funded by game sales) servers. They may need to download patches. They may also be calling support numbers to ask for help from the dev funded support staff when something breaks. They are going to be wondering where the sequel is to the game in a year or so when the company doesn't make enough from sales to warrant making a sequel.
- The used game store makes a huge profit on the game sale, usually well over %100 of their ~$20 investment. It's a brilliant profit model. Nobody can blame a business for making money. That's why you are a business. It's certainly a better business then the suckers making $10 a pop on new games.
Now, the devs know this and have known this for a while. They gripe about it when people ask, because it's directly effecting their livelihood. It's REALLY HARD to get funding to make a high quality game. They live from project to project, and much too often the majority of developer teams get layed off after a project is done. Used games are completely legal though, and most rational people (including the devs) understand this. They don't have to like it, but they understand it.
People are working on other methods of dealing with this outside of outright condemning used sales. MMOs and other subscription based online games are becoming hugely popular in the eyes of investors because they get around many of these issues with used games. Things like project 10 dollar are the more obvious response. Consumer awareness would be another. DRM delivery systems like Steam seem to be the most well received. Like musicians, developers live off their fans, and they need to have people out there who want to support their dev of choice in order to get more of the good stuff.
Comparing this to other used markets is tough, most other forms of used products either have physical wear, or don't suffer from such a high percentage of immediate turnover within the first week or month of the product. Movies control the market for several months to get people to see them in theaters. Bands tour and make most of their money on concert tickets and merchandise sales like shirts/etc. Even the music CDs themselves don't suffer from the huge difference in price margins that games do. They don't have dozens-hundreds of people involved in the creative process, and they rely on high volume/low price.
Also, while this certainly effects every game developer to some extent, it hurts the smaller indie studios the most (combined with piracy). The larger studios like EA or Activision will defend their bottom line like any good company, and they are the ones who the clout to actually make changes. But the mid sized studios are the ones who can't afford the extra costs "bonus" customers bring in, and are the ones silently dying as they are double teamed by Usedstop and software pirates.
We could all play flash games that don't end up on Usedstop store shelves I guess. Pirates vs. Zombies is pretty damn fun.
Continued: http://www.escapistmagazine.com/forums/jump/6.229882.7997189