Used Game Sales are a "Bigger Problem Than Piracy"

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acosn

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Sep 11, 2008
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Starke said:
Okay, I know the price point argument isn't legitimate against piracy, but here, I have to wonder if this isn't an indicator that games are being priced too damn high.
priced too high? No. There's such thing as 50$ and 60$ games. Very few mind you, but they're out there.


The problem is that companies think themselves arbiters of game price.
 

unoleian

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Jul 2, 2008
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There's no used-game market until there's a new-game market. Used copies of a new game aren't generated out of a vacuum when that new game hits.

The price difference between a used game that's been recently-released and a new copy of that game is so slim that few I know don't opt instead to simply purchase a new copy.

By the time a used game is on its third or fourth cycle of ownership, it's usually either a case of that game is out of print, or it's so horrid it's passed around like a hot rash.

The used game market is strong. But it can never be stronger than the new game market, the one that dictates supply in the first place.
 

DanDeFool

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Aug 19, 2009
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Yeah. I bought virtually every PS2 game I own used from Gamestop and Amazon, often at 1/5 or less of the original MSRP, counting shipping. It's a sweet deal.
 

Starke

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The_root_of_all_evil said:
Starke said:
The_root_of_all_evil said:
So Piracy is 90% of all lost game sales, and Used Games are bigger... That's at least 180% of sales...

Did these people ever take math at school?
Piracy is 90% of the PC market. On the Consoles its in the 10-20% range. (Don't quote me on that second number, that's my recollection, I haven't looked at the numbers in the last two years.)
Yeah, that's the figures...but like a lot of statistics, I've never seen any evidence. In fact, quite a lot to the contrary.

For instance, if I buy GTA - break the disc accidentally, d/l a crack and buy it second hand - then these numbers allege 66% profit loss.
Yeah, but, seriously. You're telling me everyone who buys a game then downloads a torrent of the game for just the crack? Wait... something doesn't make sense here...

Oh, yeah, and the last time I verified this I used Modern Warfare 2... where once you buy it the disk is effectively a coaster, thanks to Steam. (Though, to your... marginal credit, I didn't let you know that before hand.) But, thanks for letting me know that 90% of the gamer population aren't pirates, just incredibly accident prone.

EDIT: Sorry, 100%, not 90.
 

Starke

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acosn said:
Starke said:
Okay, I know the price point argument isn't legitimate against piracy, but here, I have to wonder if this isn't an indicator that games are being priced too damn high.
priced too high? No. There's such thing as 50$ and 60$ games. Very few mind you, but they're out there.


The problem is that companies think themselves arbiters of game price.
Yeah, buh, what?

I'm guessing that's not US$ (and I apologize that that's what I immediately think of when I see a $). In the states the standard price points are $50 for PC and $60 for 360/PS3. With $10 shaved off on some budget titles at launch.
 

dochmbi

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Sep 15, 2008
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Why is everyone trading in games at a store? Isn't there a reliable and free-of-charge auction site you could use? I have a nice local online auction site which is free and easy to use so I do my trading there.
 

ItsAPaul

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Maybe they should print games longer. I don't trade games in since that's retarded but its nice to know I can go get basically any game for PS2 for dirt cheap without having to order it and hope the disc isn't messed up.

Also, kudos to EA. Fucking over Gamestop always gets a thumbs up from me.
 

tux789

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Jan 27, 2010
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Okay
A) $60 is a LOT of %$#%ing money

I know the developers can't seem to understand this concept but the market price for a game is determined by market forces not what the accounting department comes up with to boost sales in the fourth quarter. Instead of only discounting new games I don't care about to $40 try discounting it to $20 after a few years. This way 1)we can pay for it. and b)you get a cut of the money.

B) Make interesting games

They sell used copies of FF7 for $70. Think about this. A highly demanded out-of-print game is $10 more than "Generic God of War Clone, Now with Eight Seconds of Tits."

It may be worth doing but its not worth overdoing. Why would I spend $60 for the rip-off when I can get the much better original for $20. It's like these guys have never sat in a single economics class. In order to sell a product you must provide a product customers are willing and able to buy for a price customers are willing and able to pay for.


Sorry but at this point the companies seem to have the heads three feet up their asses to not recognize the fact that they are doing wrong and need to correct this before they go belly up.
 

Brad Shepard

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They can make a little money or no money at all, in my mind, the guy needs to shut up and let his masive paycheck come.
 

samsonguy920

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Hithlain said:
You know, maybe the companies should... create their own marketplaces for used games? If they give a little bit of a premium on the trade in they can get business and they can make money on the used game market at the same time. Actually, I wonder why this isn't in place.

Like, for example, let's say I want to sell Twilight Princess. Perhaps Nintendo should have an online marketplace with free shipping reimbursement and a little bit of a discount if I trade it for another Nintendo game. Wouldn't that work? I mean the big 3 companies could control their own market of their own games. Since I own the Wii, obviously I would be interested in getting another wii game. And the same for any other game from another company.
The only thing the company looks at with that idea in mind is the money they would have to spend putting that plan into place. Not to mention it is such an awesome idea that nobody with influence will even think of it. Might be a good time to send Riccitello at EA an email. I doubt Kotick or Nintendude would seize on it.
I have to wonder if anybody has even looked at Blitz Games library. That is every single game that will be found in the bottom of Gamestop's used game bin that will be collecting dust, comprising 90% of the bin. Very little of that gets resold except to daycare centers which will just be giving the games away afterward.
Maybe if Blitz didn't make one-shot crap games, then they would actually be selling games and not crying about seeing their games getting sold back to a retailer used. I wouldn't be taking anything from this article except the potential for satire that could be applied to it.
 

Tenky

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Apr 19, 2010
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There's this point I have a hard time understanding... Why do people think that a publisher has anything to gain from having "used" players playing their games? They're simply losing money with those people, especialy on services they have maintain the infrastructure for online play such as on the Playstation!

Think of it this way, they release patches, updates and maintain the communities with their paid staff... Paying the full price of a game goes directly to funding such activities. If they didn't see any of your money, I don't have a problem with them cutting you out.

Not only that... Used games outlet require some preorder promotions from developers otherwise they won't carry the title in their stores. The whole point of getting that new costume or bonus that's basicly worthless, is simply to drag you to their store and blast you with ads, try to sell you additional crap (magazines, waranty... etc!)

I don't see how people can actually support those stores, just like when I buy music CDs, it's usualy because i want to support the artist and make sure they keep at it!

On another note, I'd love to see the age of people posting, because so far, I think it's only people who don't yet have a full time job or are in school, 50$ once in a while isn't much when you are settled in life, most pay that much per month just internet on their iPhones!
 

Nukeforyou

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Mar 26, 2010
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if their such a big deal why wont publishers release their games for PC?!!? We dont even HAVE a used game market anymore
 

Addendum_Forthcoming

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rockingnic said:
If you can't afford a new game, then either:

A: Get a job.
or
B: Don't buy as many games because you don't need to play every game.

If money is a problem then I bet you have much more concerns then playing the next game, like paying rent/mortgage/bills, buying food and other basic needs. Honestly for all those who buy used games and complain that developers aren't doing their job right, go whack yourself in the head with a crowbar because you're probably why that happens.

F.Y.I. This doesn't go towards those games that you can't by new and used is the only option, like N64 games, etc.
I suppose that means I should buy a brand new house ... brand new car ... and whenever someone gives me a gift? Pfffh tell them to keep it and I'll buy the exact same model for the market retail price so that the developer gets his dough?

Oh and heaven forbid if a friend loans me <insert name/concept/item here>.

Next this guy will say that loaning games to friends is hurting the video game economy.

Video games are a lucrative business ... lets say the devs get only 5% of the base market retail of their games at point of sale within the the first 6 months when they are at their peak.

Monster Hunter Tri has sold ... how many so far? 200 .... 300 thousand copies in Japan siince it's release (and at the equivalent of 60 US bucks a pop plus monthly subscription fees ... that's not bad for one litter series in Capcoms impressive lineup of games)?

I think the true message of this is that devs should perhaps make games that are fun to play for MORE than a week.
 

Starke

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tux789 said:
They sell used copies of FF7 for $70. Think about this. A highly demanded out-of-print game is $10 more than "Generic God of War Clone, Now with Eight Seconds of Tits."
Dante's Inferno?

Sorry, my brain went off kilter.
 

Klepa

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Apr 17, 2009
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A very sensational headline. The guy clearly states that used games are a bigger problem than piracy on the consoles.

Anyways, I see where he's coming from, but console games are so damn expensive, what does he expect?
 

Sephiwind

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Aug 12, 2009
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Didn't the movie and video game industry cry about losing money way back in the day when movie and video game rentals became big back in the 80s. Primarily with Blockbuster becoming a major company.
 

bleh002

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rockingnic said:
RvLeshrac said:
rockingnic said:
You do realize that games don't cost, to make, the same in the future than they do in the past. So before, games on consoles were $50, let's say it was $45 to make it and $5 profit margin. But with the technology today to keep up with the times (it's like updating a PC to the maximum each time something better comes out), the cost becomes (just for example, not saying it is) $55 and they make it $60 for a $5 profit margin. By that, they lose money and instead of having the rights to the game as an asset, it becomes a liability and they would close it immediately. I wouldn't be surprise if the cost for a single game and standard retail price, in the future, becomes $100, but in the future the value of a single dollar will drop, that's to be expected.
This makes... almost no sense. I don't mean that your premise is flawed, just that I can't work out what you're trying to say.

If I'm hearing you right, you're saying that each copy of a game costs $55 to produce. That makes sense if you're looking at physical goods, but when you're talking about software, there's no need for a physical item. Additionally, it only makes sense if you can't produce an infinite number of an item - it doesn't cost me appreciably more to sell 10,000 copies of a word document - perhaps a few cents for the bandwidth, and another few cents for payment processing. It DOES cost me substantially more if I need to sell 10,000 copies of a check-valve, because I need to spend money on materials, energy, and time (employees).
The cost includes, new software and hardware, salaries of EVERY person working on it. Any costs of testing (yes it does cost to test), advertising, bills. Bungie has a whole room with hundreds of 360s (both new and old) to test run the games 24/7, seeing any overheating or other performance problems so there's hardware (the hundreds of 360 including newly bought ones), bills (electricity), and more. Basically everything that is required to create and sell a game, even each time someone opens up a soda can so they have the caffeine and energy to keep working in the night so they can meet deadlines. Don't also forget the benefits each person has (like paid vacations) so someone can enjoy coming to work on the game each day. Sure if you love games enough, you wouldn't need any other incentive to work on it but people do need vacations every once in a while so they can be at their best.
Cost accounting failure spotted.

When you say that each games now costs $55 to make, you are ignoring several significant factors in how prices are determined.

There are two types of costs - fixed and variable. Variable costs relate specifically to each unit sold. Fixed costs do not relate on a one to one basis. Variable costs in the case of video games would be the licensing fees paid and manufacturing costs associated with each disc (case, manual, cover, disc). Fixed costs would be everything else you mentioned and anything else you did not mention that was involved in the development of the game

As long as the price of a video game is higher than it`s variable cost, the more copies you sell, the more of your fixed costs are recovered, and the less each copy costs to make. The tricky part with video games is that Nintendo, Microsoft and Sony take an additional fee in the way of a license for each disc. I believe that this license though, is charged only for games sold. Otherwise, you`d only ever see small runs of games made, with more runs done only after there is demand. In addition to that, you have the mark-up that stores charge. Now, I have never audited a game retailer, so I don`t know what that mark-up is, but it does play a factor, and it most likely is less than %100.

So yes, video games could be reduced in prices to something that people view as more affordable, and as long as the number of games sold increases in a way closely matching the price drop (so for a %10 drop in price, %10 increase) it would be fine.

Personally, I buy new games, but I also trade in games to get new games. I don`t like getting other people`s used games, because I don`t know what they did with their hands before handling the manual or case and I hate things that carry that stale smoke smell that you`ll find on the belongings of heavy smokers. I bought a used copy of Legend of Mana once and I could never ever ever play it, because every time I opened the case that odor just erupted and assaulted me.