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Buy Second-Hand Games, Stifle Creativity?

Thanks to GameSpot for its 'GameSpotting' editorial discussing why buying second-hand games could have a negative effect on videogame creators. The author points out: "You know, Nintendo, Sony, and Microsoft must have a real love/hate relationship with stores that stock used games alongside their new games [since buying used games doesn't give] the game developers, or the game publishers a thin, red cent. Instead, the retailer is enjoying a nice, fat profit margin, where the markup is in the neighborhood of 200 to 1000 percent." He goes on to argue: "Buying used is equivalent to the game not selling at all in the eyes of developers and publishers, and when games don't sell, they don't get sequels and excellent concepts and, therefore, opportunities are lost."

11 of 217 comments (clear)

  1. bullshit. by dunkelfalke · · Score: 4, Interesting

    if you sell used games you get money to buy new games. so simple.

    --
    Conservatism: The fear that somewhere, somehow, someone you think is your inferior is being treated as your equal.
    1. Re:bullshit. by MachDelta · · Score: 4, Interesting

      Very true. I bought a used game a while back (one of the Neverwinter Nights expansions) that had the previous owners' receipt in it. Out of curiosity, I looked to see what he had sold and bought. He sold 5 or 6 games/expansions for around $85 (Canadian), and bought 3 new ones (2 full games, 1 expansion) for something like $130. So the publishers and developers got ~$40 out of him, he got 3 new games, the retailer (EBGames) got to cash in on me, and I boosted my love for Bioware with their +2 Expansion of Funness.

      Whats wrong with that?

  2. Sounds like a lot of bull to me by Flyboy+Connor · · Score: 3, Interesting

    Many publishers release repackaged versions of their games a year or so after the original release, usually priced $5-$10. If they can profit from that, new games are way overpriced. If they cannot profit from that, someone buying a second-hand game a year after its release doesn't cost them a cent.

  3. Be thankful... by Tuvai · · Score: 3, Interesting

    That you don't live in Japan, where the software developers have been known to not only take a dim view to retailers stocking second hand software, but also actively clamp down on it.

  4. Community support by cgenman · · Score: 4, Interesting

    Community support goes a long way to getting a sequal made. Prince of Persia: SOT sold pretty poorly overall, but because of the tremendous buzz surrounding it the Prince of Persia line is suddenly revitalized. It's never about how well this game sold, it's about how well people think the next game will sell. Part of that is based upon sales numbers, but a large part of that is based around the size of the community around the game. Used games greatly foster community.

    Furthermore, the reason used game prices are so high (besides EB's fat profit margin) is that not enough people sell their games. People become attached to them, like good books or movies, and don't want to give them up. Also, because they retail for 50 and sell for 5, people understandably are shocked by the depreciation. If you want to support gaming as a hobby, go third party. Sell back any games that you don't play anymore, and sell them to the smaller local stores that haven't been gobbled up by the major chain.

    Cry no tears for Nintendo. It is true that their profits were cut in half this year, but that was cut in half to a half billion dollars. Used games are necessarily a diminishing-returns phenomenon. Most games launch at a rediculous price, and are quickly reduced as demand subsides. Very few people resell their games, and the few that do generally plow that money right back into the hobby of gaming. Does that mean the copy of Metroid Prime you picked up used for 20 bucks from a local mom-and-pop videogame store doesn't pay Nintendo a penny? Yes, but the same could be said of reselling movies, cars, furnature, or anything else in life. Nintendo made their money. Sony made their money. Microsoft made their money. If the person who paid for that game wants to sell it to plow even more money back into their hobby than I can't see how this hurts the gaming ecosystem.

    As a game developer, I welcome the practice. Heck, I own a used copy of one of the games I helped develop, which I picked up for 11 dollars.

  5. Game sales by Flyboy+Connor · · Score: 4, Interesting

    Game developers told me that the first three months after a game is released are crucial: that's when they sell the most of them. Everything after that period is nice, but if they didn't make a profit in the first three months, they never will. I am quite certain that in those first three months it would be rare to encounter a second-hand version of a game. Of course, you will find the warez-rip in the first three days after a game's release...

  6. Did you read the article? by Ayanami+Rei · · Score: 3, Interesting

    Look, that's not what's being argued here. The problem is when a retailer sells the same game used that it is also selling retail.
    This is not about games that are no longer in release.
    The retailer knows that it can make a lot of money by placing title "XYZ" used for $45 next to "XYZ" retail for $50, while only giving the seller of the used title a pittance in exchange. That markup is pure profit for the retailer, which helps neither game producer or player.

    Here's my test to know whether your money is going to the right place:

    1) If a used game is being sold for more than 75% the retail price, STOP, buy the game retail.
    2) Ask the clerk how much the store would give you if you SOLD them a copy of that game. If the difference between that price and the used price is more than 50% of the retail price, STOP! Buy the game retail.
    3) If the game isn't available retail, then it doesn't matter, buy it used.

    The tests in 1 and 2 make sure that the store isn't ripping you and the publisher off. You'd be better off looking through ebay listings for that kind of markup.

    --
    THIS THING CAN TURN ON A DIME, MACROSSZERO STYLE ALSO FUCK BETA, ~NYORON
  7. Re:Sorry, by obeythefist · · Score: 3, Interesting

    It's a little different though.

    The reality is, piracy doesn't actually take that much money away from the publisher, because people who pirate would generally go without instead of shelling out $99AUD for the latest cludged console converted catastrophy for PC. Much like the MP3 market where it's shown time and time again that if people don't pirate MP3's, it doesn't mean they'll buy more CD's.

    But the person who walks into a game shop and shells out $99 for two used games would otherwise have spent that money on a brand new game and given that money to the publisher instead of the shop owner. Again the RIAA/ARIA are pretty livid about the second hand CD market. This market represents an even bigger threat to the RIAA than 2nd hand selling computer games... because SimCity 2000 looks awful by todays standards, but The Beatles still sound as good as they did all those years ago.

    --
    I am government man, come from the government. The government has sent me. -- G.I.R.
  8. Developers are crying to the wrong people by neura · · Score: 5, Interesting

    Just like the music industry, the artists (developers) should be bitching out the publisher for ripping them off. Publishers make most of the money and do the least amount of actual work. Not saying they don't do much work. Everybody involved does a lot of work, but they have by far the largest payoff.

  9. Good by Monofilament · · Score: 3, Interesting

    A developer should really look at themselves if they see that there are a whole lot of copies of "Random blow the crap outa something" game on the shelves at their local EB.

    I could care less if they make a profit on it .. they already sold it once.. if its being sold used there is a reason somebody wanted to get rid of it... and that onus is on the game developer.

    If the game sucks .. it sucks ... or if its an iffy title that not as many people will like .. than they're not gonna get a skewed view of how many copies sold.

    In my own opinion only the game developers hurt themselves with used games... if the game was that kickass, then there would be no reason somebody would wanna sell it back.

    In fact i'm glad some game developers lose money cause i sell back games or buy used games .. half the time its cause some game sucked ass. I'd rather stick it to them by getting somewhat of my money back for the time that they stole from me for playing their horrid game. So many come to mind its mind boggling.

    Businesses fail .. thats life .. if you're a sucky game developer .. at least keep in mind just by your existance you're forcing a good developer to keep on their game.. you're doing a public service .. but further than that if your game sucks, it sucks, and its not supposed to sell.

    --


    Who makes you Sig?
  10. What buying used *really* means... by stienman · · Score: 3, Interesting

    Buying used means:
    * The original owner didn't find the story satisfying enough to keep
    * The original owner sold it to buy a newer game
    * The original owner's younger brother needed ca$h fa$t and those rich nigerian people with slight banking problems won't put out to a 12 year old

    In either of the first two cases, the game publisher's shouldn't continue the series - it was good for a few weeks/months of game play, but wasn't a classic, or is not good for group play.

    -Adam