Why Game Developers Should Shut Up About Used Games
Ssquared22 writes "It may feel like a rip-off to some, but you've got to admit that paying $30 for Gears of War 2 sure beats paying $60! Game publishers and developers may not like it, but people are going to trade in used games for new games and those old games will be sold back to other people. There's nothing game developers can do to stop them, and companies like Gamestop continue to laugh all the way to the bank. In an article at Crispy Gamer, David Thomas dissects one of the most critical issues in gaming today: used games and merchants (online and brick-and-mortar) who specialize in this 'sleight of hand.'"
Let's say I buy $GAME second hand for $30. Perhaps I'll like it enough to buy the sequel $GAME_2 new, full price, when it comes out and not wait.
Game companies should progressively lower prices of their games as time passes. This would eat up the used game market.
A NYC lawyer blogs. http://www.chuangblog.com/
Anyone who describes selling used anything this way is clearly so out of touch with reality that their opinion on the subject isn't worth listening to.
The primary reason that game developers (and marketers) should shut up about used games? It's not because it may act as advertising for their future games, although that's a valid economic argument. It's because if you buy something, you own it, and it is yours to do with as you wish. Don't talk about "selling" people games if you're not willing to, you know, sell them. Rent them out, whatever. But when you agree to have your products on store shelves (store, not rental facility) or listed as "for sale" in online catalogs, you are giving up the right to control what people do with the physical media after they buy them. Period. End of story. Game over, man, game over.
Movie studios, music labels, book publishers: you too.
The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
Developers and publishers are under the, mistaken, impression that they're missing out on huge revenue stream through used games. Let's assume that I buy a game for $60. Once I'm done with it, I sell it, either through Gamestop or Amazon for about $20 net. They take a $10 commission and sell it to someone else for $30. In this scenario developers seem to think that they've missed out on a single $60 from the person who bought it at $30 used, but that just isn't the case.
First of all, the person who waited for a used copy at $30 isn't going to spend $60 in the absence of a used copy. They're going to wait until the new copies are about $30 and buy it then. Giving them fewer choices of how to spend their money does not magically give them more money to spend. Also, the person who bought the game at $60, didn't just buy a game. They bought a game that they knew they could sell for ~$20. By stripping out the ability to resell the game you lower the value of the game to the initial buyer as well. So without the used option, the developer doesn't get two $60 sales, they get one $40 sale and one $30 sale. But they have to pay for all the production, shipping, packing, etc... costs for a second copy of the game as well. So at the end of the day the net gain is more or less zero.