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Wal-Mart Enters the Used Game Fray
eldavojohn writes "It's a simple model — you buy used games for a third of the price of a new one from patrons. Then you turn around and sell the game for two-thirds the normal price to other patrons that have not yet enjoyed the title. Such has been the model for stores like GameStop. The great part about that business is a recession can sometimes help their market, as gamers look to save a few bucks any way possible. Well, today Wal-Mart launched kiosks in 77 of its stores that vend used video games. Looking like a RedBox DVD kiosk, these automated machines are full of bugs, but spell trouble for businesses like GameStop. This should also pique the interest of used-game opponents and provide a bigger target for them to go after if they get the politicians on their side."
Excellent. With Walmart now financially committed to reducing the amount of DRM that would interfere in resale, the amount of anti-DRM political lobbying money should increase dramatically.
That logic is whacky. So does that mean that you won't buy a house or a car second-hand (or sell your own after you have bought it) because this would mean that neither GM or the Architect got paid again? If so, I assume that you want to make sales of used cars illegal, and require that people raze their houses sell when they move so that architects and construction firms get paid again by the new person who buys the land? If not, please explain why you think that the first sale doctrine apply to everyone except game makers?
IMHO game publishers are coming at this from the wrong angle - they should be looking at the second hand market as an opportunity rather than a threat. Over the last year or two there has been a growing trend for games to have paid-for DLC (see Guitar Hero/Rock Band as prime examples). Since this content doesn't get resold when the game does the new owner may well then re-buy the DLC.
So although yes they might miss out on the profit from the original game sale (assuming that the person who bought it second hand would otherwise have bought a new copy) they ARE still making money.
Also don't forget trade ins - many console owners I know (myself included) will trade old games for money off new ones, often allowing us to buy more NEW games then we would have done otherwise. Why not embrace this? Publishers could offer incentives if people trade in one their older games for a sequel, or a direct competitor to their game - say trading in Guitar Hero for Rock Band etc.
When the music market changed under them (i.e. the internet) the industry tried to fight the change rather than embracing it as a new opportunity, that didn't work out too well did it?