Perhaps my use of the word "monopoly" was a bit vague. You're right, one company does not have complete control of the market, and in a world where there are a variable number of distinct price points and each game comes out at the corresponding value, you'd be correct in saying that that my monopolistic forecasts are incorrect.bahumat42 said:thats not what a monopoly is. A monopoly is where one company has complete control of the market (the closest real world example right now is actually steam). The incentive to lower prices is the same for any free market product, to compete with opposition companies. Things like Indie games and the app store are proof that theres a market for lower price point shorter quality titles. All it takes is one convincing economist in one of the big companies to give this a try and it will stumble. (our last chance failed , which was section 8 prejudice btw, so anyone moaning about a fixed price point who didn't buy that gem should be ashamed) but it will be tried again in the future. Hopefully its more successful that time.Falcon123 said:I definitely understand what you are saying, and in a perfect world, you're absolutely right, but by removing the used games market, you've created a monopoly in which they don't have much incentive to lower prices until they absolutely have to, and I doubt that they will. See, in the current system, publishers sell the game to retailers at a fixed price, thus creating a range of prices at which those retailers can offer the game to maximize profit. The cycle by which a publisher can receive data, analyze it, respond to it, sell versions of the same game to retailers at the newly established price point (if there is one), and have those copies hit the shelves is far longer than it is on a digital market. If the whole of games was a digital market (and you could make a good case for it), I would agree with you, but as of right now, response time is far too long for such a thing to occur.bahumat42 said:ahah but surely economics backs the statement that they can accurately plot price point/demand in a world where there are no pre owned games, and thus lower it over time. I stand by the fact that their businesses and should strive to earn the most from their IP and this would be the way to go without the abritrary undercutting of used games lingering around.Falcon123 said:I get what you're saying as a PC gamer since the price point tends to be effected by the console market (because otherwise sales across the consoles-including PCs-would be too uneven), but I think your argument stems from an overly optimistic view in which developers are more willing to drop their prices simply because they should , and I don't think your logic on pricing holds up.
See, right now, developers have to compete with the used games market. If used game sales drive the price down, the developers have to lower their prices as well so that there's still some chance that people will buy the game new. I mentioned earlier that I bought Enslaved Odyssey to the West for $20 about a month after it's release. This is largely because it's a single player only game, so people kept trading it back in when they had fully completed it since there was nothing else to do, dropping the price for both the used and new versions since you can't sell a game for $60 new when the used but still perfectly functioning game is $20.
But let's say the used games market isn't there. Single player only games no longer lose their value as they are completed since no one can trade them back or loan them to a friend. There's no incentive for the developer to lower the price point after a month because the game is still just as valuable as it was on day one, and if people want to buy it, they have a monopoly on the price point since no one can undercut them. The price will stay higher longer, doing the opposite of what you predicted.
But what about multiplayer games, you ask? The good ones are not traded in because people keep playing them, so the used game market for them is made insignificant. Gamestop and other used vendors can't resell the game for much less than full price because they don't have many used copies since gamers who buy them are satisfied with the product, therefore making the used games price point minimally lower, but not enough to deter the average individual from buying new and getting the warranty and everything else that comes with new games. Those that are bad would be traded in far more often, thus driving the price point down in the used games market to the point where it should belong given it's quality, and again, to compete, new games must lower their price point as well. Without a used games market, both games would only be able to judge whether the game price should drop by pure sales data, so reaction would be far slower.
So, on the principles of basic economics, having the used games market actually lowers the price of both new and used games due to competition more quickly, and removing it would remove the incentive for game developers to do so.
I'll admit, it's a little different on the PC games market because of Steam's relative monopoly on virtual downloads allowing them to save gamers money in massive ways through well-timed sales, but when you're buying physical copies, you just can't do it. Steam can offer a nearly infinite number of downloads, therefore making it capable of selling copies of the game at the lower price point across the board to all regions it desires simultaneously. Could you imagine Microsoft and Sony trying to coordinate EVERY STORE IN THE COUNTRY to do the same? It's a pipe dream at best. Expecting consoles to keep up with that kind of policy is unfair.
The used games market doesn't hurt prices; it helps. So the next time you try to blame used games for higher prices, remember how economics works and thank Amazon for your lower price points
As for your multiplayer argument i have another, in a world where used games don't exist the market trend of tacking on mp where it doesn't belong (which exists to act as a first hand measure currently) will be less prevalent and a true split can occur where both types of games are sold as what they are, rather than some hybrid (the hybrid may work sometimes, but who touched the sp bit of mw3 or bf3, and similarly who really played the crysis 1 multiplayer).
Theres pros and cons to this argument. But to me the pro's outweigh the cons. Without one of their major bugbears the industry would have to look inward and change things like the fixed and unmoving price point.
And tacked on multiplayer will always be a feature because it will increase sales no matter what is going on, therefore increasing the amount of time that mostly single player games will take before dropping to the next price point.
On a digital market like Steam, you're absolutely right. In the retail market in which console games currently exist, your theory is far too flawed without a dramatic overhaul of the system, which isn't what's being proposed by this policy.
Companies follow the money, if it can be proved that our market wants this it will happen, now getting that initial proof may be tough, but one of the big boys will try again. Its too big of a concern to ignore.
But we can only model after the world in which we currently exist, and this world is the world in which this policy may be passed. As it stands now, there are two major price points in the console market, with minor deviations on the XBLA: $60 for a full retail purchase, $15 for an XBLA game. This is mostly because of the gamer culture's inherent belief that if it costs less, it must be worth less, and therefore not be as good as the $60 game. That's what's happening right now , and if it changes, then I'll be inclined to agree with you...
...But right now, it won't. Even if a major economist of one company (as you put it) decided a $50 price point, or $40 or whatever, was a better option for a specific game, the sample size would be far too small to make any generalizations that would impact the whole of gaming. It will take years, likely decades, before a system like the one currently on PCs that takes into account a far greater number of price points, was accepted in the console gaming market. It's the type of change that will occur slowly and gradually as more and more companies eventually try it, and that's if it's a good idea. The console gaming market is different than that of PCs, and I'm not well-versed enough to know that it is the best plan moving forward (though again, even if it is, it will happen slowly)
So what do we have now? Publishers all working together selling games at the same price point. While it's not an actual monopoly, it still operates like one , at least as far as sale to retailers is concerned. The used games market provides a much needed variable that, at least for now, is necessary to accelerate change.
If you want to make a policy like this make sense, you need to find a way to make a Steam-type program available for console gamers to do what PC gamers already do, allowing more room for experimentation, accelerating price changes due to far quicker feedback, etc. Do you trust Microsoft to do that after the fail that is Games for Windows Live? Do you trust Sony to do it after they've been continually hacked and just had a major leadership change? Because I don't, and thus, given the current console retail culture, have to react as negatively to this policy as I am.