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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."
In other news, used car sales are hurting car manufacturers even more lately, when they're already beleaguered by rising petrol prices and a struggling economy. Ford executives recently commented that used car sales are "extremely painful," while eBay's CEO unsurprisingly came out in support of resales. David Braben, chairman of UK-based car manufacturer Frontier Development had this to say: "Five years ago, a great car would have sold for a longer period of time than for a bad car â" which was essentially our incentive to make great cars. But no longer. Now manufacturers just see revenue the initial few weeks regardless of the car's quality and then gamers start buying used cars which generates money that goes into eBay's pocket, nobody else's."
We should bail out the game industry?
After all, if it goes under, we'll get a lot of people, who spend hours gaming, not gaming anymore. This means less soda and junk food to snack on, which in turn, means the junk food industry will be hurt, which, in turn, means more layoffs.
Rubbish games don't sell the first time arround.
If making a game is always resulting in a loss, it wouldn't make any sense ( business or otherwise ) to continue making games.
Therefore, I can only conclude that making a game is *still* profitable ( despite everything ) and would just like to say:
Be happy you are making profit and stop whining about how much.
That goes for **AA too!
The disappearing pencil trick. Let me show you it.
that the used game market is affecting price and quality, my first response is GREAT! Market forces at work are driving new game prices down and quality up as developers are forced to compete with a robust substitute good: the used game.
Then I realize its more of the same FUD campaign put on by the mega-corporations to prep us for invasive mechanisms inserted into games with the end goal of bilking us for more $$$. I think I'll avoid supporting this industry and stick to indie games until they have an attitude shift.
...yes yes, its all ther nasty consumers fault! You bundle crapware drm and we don't buy it, uhuh, thats my fault. You release the game for £50-60 quid, and somehow, especially in the current economic crisis, I find that I'd rather pay for food and shelter over GENERICFIFASPORTGAME-2009. Im even more evil for thinking that second hand at £20-30, I might just be able to afford it without sending you more money after its first sale.
Oh, I also apologize when i decide not to buy your £50 game, because you decided you could, infact, split it into 3 seperate games and sell it that way for more than £100, for pure greed (Hi Starcraft2!). Im so very sorry. Also, do forgive me when i refuse to buy your game at all, because you decided that buying the game second hand means im njot entitled to the full game, because I also decided you weren't worthy to survive as a games company anymore (GOW2).
And "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."
No Im sorry, games just aren't as good as they were, because I recall buying and trading in games for second hand games more than 5 years ago. So that hasn't changed, must be the games eh?
"I may be full of crap about this game, and I may be wrong, and that's fine." -Jack Thompson
Two facts:
* The high price of game creates the 2nd hand market.
* The high price 2nd hand market helps people afford new games, by selling their old games.
Putting up the price of new games isn't going to change those facts, in fact it will raise the price of 2nd hand games making the market more lucrative and increasing the amount of trade in 2nd hand games.
Preventing games from being sold 2nd hand will reduce what buyers can afford for new games.
Folk only have so much money to spend on games, after all!
I used to regularly spend about 1 GBP ($2) a week at charity shops buying books at 10-20 pence each. (They'd go back to charity shops to be re-sold when I'd finished with them)
Then the shops went "up market" and started selling at 50p - 1 pound each and now they don't get any of my money at all.
Games industry is going the same way.
Sam
blog.sam.liddicott.com
and you won't have this problem affecting your revenue stream.
I think one should be asking what makes people want to trade in a game after just one week of ownership.
"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.
Books, CDs, movies... these are all forms of entertainment that lose a lot of their value once they've been viewed once. If game companies don't want people reselling games, they need to make some kind of incentive for people to hold onto their games, and make the gameplay actually enjoyable so that people keep the game to enjoy, rather than just to finish the single-player content once. Great examples of this are the Smash Bros. series and the Halo series. Both are enjoyable to play with friends (or online) after you've finished the single-player campaign. Things like XBox achievements do a lot to add replayability to games, but if the games aren't inherently fun, then even they can't save a game.
Be the Ultimate Ninja! Play Billy Vs. SNAKEMAN today!
This is just plain fud. Being able to sell a game once you've played it increases the reason to buy it. Especially when the game is short, possibly bad or has no replayability value.
aka Gardener, aka ollej
The used market helps sell new games.
Some subset of early-adopter gamers are not going to buy new games at brand new prices unless they know they can turn around and sell the game to get back some of that value. This is especially true since early-adopter gamers are the ones taking the risk on the games. In this capacity, the used market actually helps you.
The used market is not the money factory you claim.
If there was truly so much money to be had in the used market you would drop your prices without hesitation in order to compete. If there was that much money you should have no problem making up for lowered prices with increased sales. The fact that you do not do this illustrates very clearly that there is not that much money being 'lost'.
David Braben, you are a remarkable idiot.
Not only have you stated that money is your "essential" motivation for creating great games - which leads me to wonder if your firm is capable of making a great game - but you have made it very clear that your firm has no incentive (read: plan) to create great games in the future.
the movie industry saying the same thing about rental shops when they first came out. They ended up dropping the price of videotapes (Yes, I'm old. Deal.) from $50 to $19.95. They don't seem to complain about that any more. Maybe if the game companies dropped the prices to begin with, more people would buy them when they first come out.
If you want me to buy "Megagame 2" but don't want me to sell my copy of "Megagame 1" in case it creates competition for your Megagame 2 sales, then offer me a voucher for my copy of Megagame 1 (you only need to match or slightly better the price places like Gamestop would pay me). Said voucher to to be used when purchasing Megagame 2 )or another of your product line).
Then when you have my copy of Megagame 1, you can destroy it so it never threatens your future sales again.
----------------------------------- My Other Sig Is Hilarious -----------------------------------
first, I've been playing PC games for over 2 decades.
Quality has dropped drastically. Technology increased which gave the illusion of high quality. Games today are a horrendous value compared to just ten years ago. Content has dropped from an observed average of 25 hours of gameplay to around 6 hours. Half the budget is blown by publishers on marketing. Publishers have also gotten quite complacent about their position in the industry. When you have more than 3 sequels, it's easy to forget about innovation.
Since games are so short these days, people go through them faster. Thus they go to the retailers what sell used games.
They're using their grammar skills there.
If playing games ever taught you anything, it should be that cars are something you steal.
Just keep in mind, regardless of all the doom and gloom reports, the Games industry is still posting new record profits year on year, so it's obviously not that big a problem.
What they really mean is they want to make even more profit and rather than produce games that are of better quality and/or appeal to wider audiences they want to keep shifting the same old crap but make more from it.
Make no mistake, the whole Spore DRM debacle had nothing to do with piracy and everything to do with preventing second hand sales. The games industry has set it's sights on the second hand market as a way to increase profits without increasing effort, I do not think it will win, but accept consumers to have to listen to whines from the industry and take it from behind on DRM and stuff for a little while yet.