Pre-Owned Games Market Goes Digital

Jan 29, 2009
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CAW4 said:
Maybe I'm missing something here, but...where are they going to be making money? With royalties to publishers and so many other choices for digital distrubution, I can't see them turning a profit.
(Sorry if the spelling sucks, my school's internet doesn't have spell check)
Selling the game again might have a small royalty towards them...
 

EnzoHonda

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Matt_LRR said:
Since when did we start caring about who sees the money on a used sale? Used markets exist in practically every domain of consumer product types you can imagine, and they all operate the same way.

I've never heard of thrift stores that pay a fee to Levi's for every pair of used jeans they sell, or an indie record store that fires a couple dollars off to Capitol Records for every used copy of Kid A they sell.

This whole industry position of "Used games are bad for the industry" is horseshit, and the fact that gamers are buying into it is troubling as all hell. Limiting the ability of people to do what they wish with a product they have purchased is bad for consumers, and what's bad for consumers is bad for the industry.

Game stores stay alfoat on revenues from Used software, and say what you will about them, the specialty game shops account for a large proportion of overall new game sales. Trade-in credit is also a major driving force behind the consumer's ability to purchase more titles, new or used.

I mean come on, music, movies, cars, homes, clothing, guns, watches, you name it - there's a thriving used market for all of them - and I've never heard another industry ***** and moan like this about how "they're losing so much money" because of it.

-m
The issue with the used game market, compared to others, is that you're not buying anything physical, you're buying an experience. (Sounds cheesy, but it's the only way to say it.) You're not buying a 15 cent round piece of plastic, you're buying 50 hours of epic dragon-slaying. You sell that experience to someone else, they get the exact same thing that you did without any money going to the maker. You buy a game, play it, sell it, someone else does the same thing with the same disc and so on. After a few months, 20 people have enjoyed it, but the creator only gets credit for one.

Other companies don't care because their products lose value over time and wear out. There is a huge difference between a new Ford Focus with 0kms on the odometre and one with 120,000kms and love stains in the back, there is a huge difference between new jeans and ones that had sweaty balls in them. There is a reason for the consumer to buy a new car or new jeans, but there is no reason for a consumer to choose a new game over a used game.

Imagine going to watch Avatar, liking it, selling the experience to a 3rd party who marks it up and sells it to someone else. Meanwhile James Cameron weeps because he can no longer afford to buy Russia.
 

Georgeman

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Argh. Royalties to the companies?! NO! Do other industries receive royalties for second-hand products? Fuck no! Why should the videogaming industry do?
 

Matt_LRR

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Nov 30, 2009
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EnzoHonda said:
I don't buy that argument at all. In the same vein, one could be said to be reselling the experience of not going naked, or getting from one place to another. It doesn't hold water. When you are buying a game, you are buying a product. That product has an experience associated with it, (50 hours of epic dragon slaying, as it were) but so does any other product you buy, (social acceptance for not making your friends look at your dong, the raw power of hurtling a 2-ton chunk of metal along an asphalt strip) - you're still buying the product itself, not the experience, and it's your right as the owner of that product to choose whether you wish to continue using it, or not and whether you wish to pass it on to someone else for them to use.

The argument is especially weak when you consider the used DVD or CD markets, which go largely unprotested by film and music companies. You are, every bit as much buing an "experience" with those products, and the same principles apply. A DVD, for instance, is going to be used maybe a handful of times before it is sold off, and while I admit, its value declines more rapidly due to the rather transient relevance of particular films, there is liable to be even LESS difference between a new DVD and a used DVD on account of the fact that it sees less use than a game and is therefore less likely to be damaged. To gut the "declining value" argument, though, CD's are incredibly permanent media, great music stays around forever and almost never drops in price. A CD that was 17.99 when it came out in 1995, is probably STILL selling for 17.99 today - Indie music stores thrive on this - along with trade in rare and discontinued CDs - and the music industry rarely even considers it. But the used music market is vibrant and present virtually everywhere. (at least among those who buy their music). Further, I'd argue that games have a very specific shelf-life. They're a commodity with value as long as the system they play on is alive - after that the game's value is toast.

The fact of the matter is, that every person who plays a title, new or used, is a game buyer. Maybe they pick up a copy of gears of war 1 on the cheap, realize they love it, and rush out to buy GoW 2 and pre-order GoW 3. Exposure is still exposure, whether the manufacturer saw a dime of the sale or not, and used game trades fuel new game purchases.

Additionally, it's a fallacy to assume that every person who buys a game used is a lost new sale. The difference in price, a coupon, a trade in or bogo promotion, there are any number of reasons that a person might choose to buy a used game, but wouldn't have bought the same game new. It's the same argument that publishers use to claim lost sales on piracy. Not everyone who pirates a game and plays it would have bought it at full price (and in fact, with piracy, I'd wager that they majority wouldn't).

Even with used sales, publishers are selling tons and tons of new product - the sales figures of CoD:MW2 should prove evidence of that. Make a killer game, and people won't be willing to wait around for a used copy to float back in. On the flip side, if you let gamers hook themselves on a franchise months down the road, when they grab a game on a used deal, they'll be lining up to pre-order the next.

The anti-used sentiment of the games industry is a simple attempt to strongarm more money out of consumers. It's unnecessary, and frankly, it looks bad. The CEO of EA isn't going hungry tonight, no matter how many copies of Madden get traded in. And while, to be fair, the music industry and film industry are attempting similar things, (iTunes, Digital download, etc) at least they aren't begging for your sympathy and whining about how much money they're losing while bending you over the barrel.

edit: tl;dr - you have bought a product, that product has a value associated with it. as the owner of that product it is your right to use it, or at your discretion attempt to recoup some of your costs by selling it to someone else for whatever value you and they agree it still holds. This is a fundamental right of ownership. Corporations aren't the only things able to sell items in exchange for money, as much as they'd like you to believe they are.
 

EnzoHonda

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Matt_LRR said:
EnzoHonda said:
-snip-
When it comes to music/movies, there's a big difference. First, most films still make the big-bucks in the theater. Musicians and the music industry have concerts, branding, radio royalties, commercials, ringtones etc. No one has to buy the CD or DVD and they still make money. If no one buys a game, the company doesn't get money. There is no world tour for the next Final Fantasy. Also, the music industry had its run-in with people enjoying their product without getting money for it: Napster. That was the type of shit-storm that the games industry is now trying to fend off. People enjoying a product without any benefit to the company. Finally, these industries aren't complaining because I'd wager they've done the math and it's not hurting them. If they thought they were losing "Napster-like" money, they'd be all over it.

The only difference (to a company) between someone who pirated a game and someone who bought a used game is that some 3rd party (Gamestop, a guy on Craigslist, whatever) gets money for a used game. Either way the company doesn't see money from the person who bought used or downloaded illegally.

Finally, the argument that a used sale doesn't equal the loss of a new sale doesn't matter. Companies want money for their product or they don't want people enjoying them. This isn't charity. It's a business and they have to protect it. It's cool for someone to enjoy a used copy of GoW1, then go buy a new copy of GoW2. You know what the company would like? Money for both. Yes it's greed. Welcome to capitalism.

I will mention one thing though: I like your argument that games have a shelf-life while music is more timeless. Is Splinter Cell a great game? Yep. Is it worth $60 today? Nope. Is a 90's album by "The Roots" still worth $15? I just paid that, so it must be. Interesting. You have given me something to think about.

(I'm enjoying this, it's been a while since I've had a real discussion on here. So, thanks.)
 

Therumancer

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Nov 28, 2007
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richtaur said:
Worst company name and logo I've seen in a while, woof ...

There's a lot to this. The used games market takes many sales away from publishers and is part of the reason games are as expensive as they are today. And unless this company strikes some kind of deal with the digital distributors, it won't necessarily be possible for them to transfer the purchase of a game from one account to another.

Just by proposing this idea to, say, Steam, Valve itself might think "hey, good idea" and implement it themselves. To them, the question would be, why include a middle man for a cut of the profit? It wouldn't make sense to the digital distributors who could probably just as easily build their own systems for transferring digital games.

Well, the thing is that the gaming industry ASSUMES that people who buy games used are people who would have bought the game new if the used games weren't availible. This is a false assumption. Looking at games on my "wait" list like "Bayonetta" the point is that they simply don't impress me enough to be worth more than say $20 or so. For someone who really liked the idea of the game, going out and getting it for $60 and then trading it in is reasonable. Just as it's reasonable for me to wait to get his cast offs for say $17.99 next Christmas. The lack of a used market simply means that I'm just not going to get the game at all. At least with the used game market, if I go buy a game used and decide I *LIKE* it, then there is always a chance that I will be interested in a sequel or whatever. Let's say "Bayonetta" blows me away despite what is currently a fairly "meh" reaction to it. Chances are in that case I might very well pre-order the inevitable sequel.

Of course we're mostly talking about PC games, which do not have much of a "used" market to begin with, unless you order through Ebay or Amazon. I have less fear of the console market going purely digital due to limited hard drive space (which will ALWAYS be limited due to a combination of increasing game sizes, and the need to keep the consoles themselves affordable). I myself do not like having to shuffle stuff around on hard drives to make room, and honestly as soon as I have to start doing junk like that with a console it begins to lose a lot of it's charm. The point for me largely being the fact that I can just pop in a disc and play without having to deal with installation, looking at possible hardware conflicts, and all kinds of other junk. Simply installing and uninstalling strikes me as annoying busywork to add to a console which should remain simplistic.
 

Matt_LRR

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Nov 30, 2009
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EnzoHonda said:
Matt_LRR said:
EnzoHonda said:
-snip-
The only difference (to a company) between someone who pirated a game and someone who bought a used game is that some 3rd party (Gamestop, a guy on Craigslist, whatever) gets money for a used game. Either way the company doesn't see money from the person who bought used or downloaded illegally.

Finally, the argument that a used sale doesn't equal the loss of a new sale doesn't matter. Companies want money for their product or they don't want people enjoying them. This isn't charity. It's a business and they have to protect it. It's cool for someone to enjoy a used copy of GoW1, then go buy a new copy of GoW2. You know what the company would like? Money for both. Yes it's greed. Welcome to capitalism.
So I guess it comes back to my question of, why would we, as consumers, lend credence to a company's lust for wider profit margins over our own rights as consumers to own a product, and do with it what we please.

The company can be as greedy as it wants - but we shouldn't be allowing them to strip us of our rights as the consumers of their products, and we definitely shouldn't be feeling sorry for them when they complain that their profit margins only rose 10% this year rather than the projected 12%. We have as much right to resell our own property to others as they have to sell it to us to begin with.

-m
 

Xanthious

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What?!?! I can sell my downloaded games?!?! Oooooh not THOSE downloaded games. Although the people buying retail games would actually be trading up if they . . . . . Annnnyway this sounds like a novel idea and I hope it works out for them in this age of DRM's more restrictive than leotards on a fat chick and install limits
 

D.L.390

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Jan 16, 2010
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I usually just buy new games, but here's a few things that are wrong with this idea;

*A lot of people don't have massive download limits to buy games and sell them online.

*People buy preowned games for a reason: because new games are ridiculously overpriced in a lot of countries/areas and nothing is being done about it.

*People will buy and sell various goods to each other. It's a face of life. If these developers want more money, perhaps they should make better games, price them lower, and therefore sell more. If you sell a product, you get money. Simple as that.


EDIT:

*Also, the game developer isn't selling another copy of the game, therefore it isn't piracy. Someone else loses it as someone else gets it. If you don't want something anymore, it's your business whether or not you sell it, how much you sell it for and what you do with the money.
 

hansari

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CAW4 said:
Maybe I'm missing something here, but...where are they going to be making money? With royalties to publishers and so many other choices for digital distrubution, I can't see them turning a profit.
I dunno either...but then again, OnLive sounded really stupid and out there when word first came out...but now...

Guess we'll just have to wait and see what happens...
 

GamingAwesome1

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I still prefer hard copies but seeing as digital distribution is inevitiable this helps to soften the blow. I hope this works as it says.
 

boholikeu

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Kron_the_mad said:
To be honest the only time I've ever sold a game was when I found it to be terrible. If I like a game I keep it.
Ditto for me. That's why I really don't mind that you can't resell Steam games.
 

CD-R

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Matt_LRR said:
EnzoHonda said:
And while, to be fair, the music industry and film industry are attempting similar things, (iTunes, Digital download, etc) at least they aren't begging for your sympathy and whining about how much money they're losing while bending you over the barrel.
What are you talking about. The music industry are the biggest whiners of all when it comes to that stuff. Hell the guy who runs the RIAA even calls transfering a cd to your ipod a form of piracy because "its not the medium the way the artist intended it to be in" or some crap. I'm not disagreeing with the rest of your post but the music industry turned whining about piracy into an art form.
 

Matt_LRR

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Nov 30, 2009
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CD-R said:
Matt_LRR said:
EnzoHonda said:
And while, to be fair, the music industry and film industry are attempting similar things, (iTunes, Digital download, etc) at least they aren't begging for your sympathy and whining about how much money they're losing while bending you over the barrel.
What are you talking about. The music industry are the biggest whiners of all when it comes to that stuff. Hell the guy who runs the RIAA even calls transfering a cd to your ipod a form of piracy because "its not the medium the way the artist intended it to be in" or some crap. I'm not disagreeing with the rest of your post but the music industry turned whining about piracy into an art form.
Right, but I'm not talking about piracy, I'm talking about whining over a legitimate used marketplace, which the music industry doesn't do.

-m