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Used Game Market Affecting Price, Quality of New Titles
Gamasutra is running a feature discussing the used game market with various developers and analysts. The point has been raised by many members of the industry that used game sales are hurting developers and publishers even more lately, when they're already beleaguered by rising piracy rates and a struggling economy. Atari executives recently commented that used game sales are "extremely painful," while GameStop's CEO unsurprisingly came out in support of resales. We've recently discussed a few of the ways game designers are considering to limit used game sales. David Braben, chairman of UK-based developer Frontier Development had this to say: "Five years ago, a great game would have sold for a longer period of time than for a bad game — which was essentially our incentive to make great games. But no longer. Now publishers and developers just see revenue the initial few weeks regardless of the game's quality and then gamers start buying used copies which generates money that goes into GameStop's pocket, nobody else's."
"That's in addition to the fact that we don't see anything from the used-game sales, which is one reason why the price of new games throughout the industry remains artificially high," he says. "I mean, the industry has to make all its money from the first sale since we don't get a penny from the subsequent dozen or so sales of that same game."
Competition drives prices up!? Don't treat us like morons. If used sales went down why would they reduce the price? To make less money? I can see that being a great business strategy.
Why are resales so popular in the first place? Because games are really expensive and have a short life.
I'd also like to point out that while the observation that 80% of money from trade ins is spent on games is interesting, the car resale analogy is a little misleading. Cars are assets. They're purchased with the expectation of a certain level of depreciation. Games are to an extent but it's not nearly as big a factor in the purchase.
The new American businessmodel :
1. start a business
2. "almost" go bankrupt
3. get your income from tax dollars instead of, you know, those horrible clients
4. profit !