GameStop Sued Over Lack of DLC For Used Games

Absolut187 writes "According to IGN, 'A lawsuit filed earlier this week against retailer GameStop says the company is "deceptively misleading" its customers into believing a used game purchased from the store comes with all packaged downloadable content advertised on the box. This content, however, is only made available for free to those who purchase the game new, as the code to access the content can be only used one time.' I personally don't have a problem with publishers charging for DLC. IMHO, you put in the effort to make it, you have the right to (try) to charge whatever you want. I have the right to take it or leave it if I don't find your price fair (same goes for the main game). But what about the used game market? Should publishers be allowed to destroy the used market for their games by including 'free' DLC with a one-time use code? Should the copyright doctrine of 'first-sale' have any effect here? Or is it up to the consumer (frequently children) to realize that the product will have a reduced resale value due to the one-time nature of the DLC code? Is this any different from the use of unique 'CD-Keys' that are required for online play (e.g. for Blizzard games since 1997 or earlier)?"

Comments

The Bigger Picture.

[grub]

/me peers into his crystal ball....

I see game publishers starting to make complete games included on disc as DLC then make the unlock code only valid for the original purchaser. That obliterates the resale market.

Re:The Bigger Picture.

[Anonymous Coward]

Why look into your Crystal ball? Modern Warfare 2 has the same limitation. If I sell the disks, manual with the CD key the other person will be unable to install the game and link it in with Steam.

Re:The Bigger Picture.

[VernonNemitz]

I think the obvious solution is for the game developer to allow online sale of new codes to unlock DLC (at a low price). Then they would be improving the value of the secondhand market, AND be able to get in on that action. Hey, they might even encourage users to sell their games! After all, if a game is bought second-hand several times, and each of those buyers also pays for the DLC (because they are not the original buyers), then in the long run the resales of the game might be worth more to the game maker than the original sale.

Re:The Bigger Picture.

[PopeRatzo]

I think the obvious solution is for the game developer to allow online sale of new codes to unlock DLC (at a low price).

You are assuming that the entire purpose of DLC is not to obliterate the secondary market for games. There's no reason to release DLC except to ruin the used game market. We now have the DLC already finished when the game is released and even included on the disk with the original game. How much more obvious can it be?

The real lawsuit should be by Gamestop against the game publishers. The people who now keep companies like Gamestop in business will just start getting their games from scene releases and keep the money in their pockets. I'm not saying this is right, but we've seen it happen time and time again. I'm continually shocked at how there are scene cracks of games and DLC within a day of the release date. Of course, I wouldn't download cracked games via bittorrent because that would be wrong, but I have no doubt that every time the game industry comes out with one of these brilliant schemes to squeeze an extra few dollars out of consumers it really just serves to create more people who are willing to violate the law.

"DLC" is just a gimmick, and something of an insulting one at that.

Re:The Bigger Picture.

[NotBornYesterday]

You are assuming that the entire purpose of DLC is not to obliterate the secondary market for games

That's what kills me. You would think that the game companies would want a robust secondary market.

(Sorry in advance) A quick car analogy - High expected resale value on a car makes a high initial purchase price more justifiable. It also makes the consumer more likely to buy another new car sooner, rather than wait until he/she can afford another steep investment with no resale value. Buyers in the secondary market are often buyers that would not or cannot participate in the primary market. A good used car is a good way to get someone to try your product who otherwise would never would have been exposed to it, and may get them to buy a new one next.

Here's a perfect real-life example. My teenage son borrowed Mass Effect from a friend and liked it. Eventually he bought a used copy of it. When Mass Effect 2 came out, he was already in line for a new copy. That new sale would likely never have happened if he hadn't experienced the first game free, then cheap. If he can't sell one game to make cash for the next one, he will buy fewer games, and do so less often. Game designers are shooting themselves in the foot by reducing the value of their games on the secondary market. In the long run it will hurt them and the overall industry. Of course, they won't see it that way. If their sales drop because fewer people will pony up $60 - $80 for a game that is worth $0 in resale, they will find some way to blame it on someone or something else ... downloaders ... used games ... anyone but themselves and their policies.

Re:The Bigger Picture.

[dgatwood]

The problem is that content creators think that their works are somehow "special" and unlike physical objects. As long as we as a society continue to play into that delusion, they will continue to believe this, will continue to believe that their efforts to undermine the resale market are productive, and will continue to believe that any loss in sales due to those efforts are caused by piracy. Until they hit rock bottom, they will have no reason to question their delusion.

When you deal with delusional people, there is no reasoning with them; they are well beyond that point. All you can really do is isolate them where they can do no harm. Stop buying products that try to restrict resale, then write them a letter to tell them why you decided not to buy their products. Then wait for those companies to die off and for new companies run by saner people to emerge from the ashes. Buy their products instead.

Now you might be asking yourself why you wrote the letter if the companies won't change. Well, a few of them might, but that's not the reason for the letter; the people reading your letters likely have no say in the matter, or else the policies would change. The reason for the letter is that the people who read your letter are the ones who are still going to be out there on the ground and in the trenches starting up the new companies that replace these companies, giving advice about what works and what doesn't, being the voices of reason. So at least in the long term, the letters help, albeit not with the products and companies currently out there.

It may be a long painful journey, but the only way to fix most companies is to run them out of business and start over. Just say no to single-use downloadable content.

Re:The Bigger Picture.

[metamatic]

You are assuming that the entire purpose of DLC is not to obliterate the secondary market for games. There's no reason to release DLC except to ruin the used game market.

Not really true. It's also a great way to jack up the price of games without it being obvious on the sticker.

For example, you buy the latest online FPS, and find that there's a map pack ($15) and a weapons pack ($15) available as DLC. You have to buy them, or you can't find anyone else to play multiplayer with. Hey presto, the $60 sticker price is actually $90.

Then after a few months when you've moved on to the next game, you go to sell your game used. Except the Game Of The Year edition is now out, with the DLC included, for $30. Which means your used copy without any DLC is worth practically nothing, rather than $25.

I noticed this trend a while back. Ultimately, I think the game publishers are playing a very dangerous game jacking up prices this way, because there are people like me who would have paid $50-60 for a new game, but will instead wait and buy the cheap copy a year later rather than be doubly screwed over by DLC.

It's possible that the extra money they make from suckers who still buy games brand new will more than offset what they lose from people like me no longer buying anything at first release, but I'm doubtful.

Yep GameSpot is at fault

[commodore64_love]

If there's some kind of bold feature list that says "free downloadable content" on the game's cover, then GameSpot and other sellers need to take a marker or sticker and block it out, because otherwise it's false advertising.

It's just like when I bought a Used Xbox 360. The description said "turn on the wireless controller and start playing immediately" but when I receive the X360 no controller was included. I contacted the seller and he tried to deny responsibility because "that was just a generic description from Microsoft and only applies to new consoles not used." However when I complained to Paypal they sided with me and gave me a $20 refund (which I then used to buy the missing controller).

Used or new, sellers are responsible for what they advertise. If it's on the cover's description it either must be included, or if excluded, blacked-out of the cover.

Re:Yep GameSpot is at fault

[spottedkangaroo]

paypal sided with you? then you're certainly correct. QED.

It's in the article

[tepples]

I think the obvious solution is for the game developer to allow online sale of new codes to unlock DLC (at a low price).

The article stated that such codes were available for sale, but the price was greater than the discount that GameStop offered for a used copy:

Collins discovered weeks later, however, he would have to pay an additional $15 to access the downloadable content, ultimately paying $10 more than the cost of a brand new copy with the same content.

It costs five times that much

[tepples]

If anyone buys that same copy used, instead of "hell no", they should get a screen that says "This code has already been claimed. But for just $2.99, you too can have this exclusive content"

If by $2.99 you meant $14.99, you have the situation described in the article.

CD-Key

[rockNme2349]

Is this any different from the use of unique 'CD-Keys' that are required for online play (e.g. for Blizzard games since 1997 or earlier)?

Yes, the CD Keys for Blizzard Games travel with the game. Only one can be active online at any time, but you are perfectly able to uninstall the game and sell it to someone else. DLC is locked in.

Re:CD-Key

[Chris Mattern]

No, it's not the same at all. The StarCraft second-hand purchaser is only denied his online play if the seller commits fraud. The XBox 360 second-hand purchaser cannot, under any circumstances, get online play without paying the game publisher a second time for the same thing. Those are two completely different situations.

Re:Why not both?

[The Moof]

If anyone buys that same copy used, instead of "hell no", they should get a screen that says "This code has already been claimed. But for just $2.99, you too can have this exclusive content"

That is what happens already (EA even has a gimmicky name for it: "Project Ten Dollar"). And the basis for this lawsuit.

The lawsuit revolves around the box art advertising something like "2 Free Exclusive Maps for Download" and don't mention anything about it only working for the first buyer. So your used game advertises 2 free maps (due to the publisher's box art), but when you go to redeem, they demand payment. Cut and dry false advertising. I can't tell you 'buy this and you get this free!' but demand cash for the free part after you purchase the original item.

The misguided part of all this is going after Gamestop. The fault lies with the publisher advertising free dlc and requiring payment. Gamestop is just a store who sold you the used game.

"free" one use DLC is fine

[nedlohs]

The buyers should be demanding a lower initial purchase price due to the lower resale value.

And if the box says there's included stuff that isn't included in the resale version the seller needs to state that. Just like that have to state that the manual is missing, etc.

Re:Read the summary

[stevenvi]

Google told me that it's the Democratic Leadership Council. Must have to do with those MMORPGs or something....

Re:You know...

[ircmaxell]

I understand that publishers don't make any money off used games sales

Sure they do. The ability for someone to sell a game will cause some people to buy more games new. Say they buy a $60 game. Then, in a month when they are tired of it, if they can sell it for $45, the next new game will only cost them $15. The publisher got $120 in sales, but the buyer only paid $75 (well, neglecting the time-cost of money). I'd bet this is the way a lot of younger people buy brand new games. They sell one or more slightly older games to pay for the newest one... Sure, there are some like me that don't sell games unless they really suck, but then again I have the money to be able to do that. If I was pushing a strict budget, you can bet I would sell the older games to finance the newer ones (and when you're talking a 5 or 10% difference between new and used, why not go new and have a better chance of resale later)...

Why are publishers being such dicks about used games?

Because they can, and because we still buy their games. It's as simple as that. If we as a unit boycotted games that have these kind of stupid restrictions, I'd bet they will change their policies. But the fact of the matter is that most people don't care enough to make a boycott effective (and hence it won't work)... Does it suck? Absolutely...

Good for Consumers.

[pwileyii]

I've got two game that use this types of system, Dragon Age: Origins and Mass Effect 2. I honestly think this system is good for consumers in the end because it should decrease the cost of used games. We all know the Gamestop, as well as the other used game sellers, make a killing on buying and selling used games and this may get them thinking about reduced the price on these titles. I find buying a used copy for $5 less then the new copy and bit ridiculous in the first place and I'm hoping this will have the effect of reducing costs. As for the DLC itself, it is never a fundamental part of the game, it is simply a bonus you are getting for supporting the game developer. It is like getting something free for buying new and I like free stuff.

Re:Why not both?

[SydShamino]

Indeed. This is no different than buying a used box of LEGO bricks that claims "over 543 pieces!". If you buy the box used, and find just 300 parts inside, it is not The Lego Group's fault for false advertising. It's at most misrepresentation on the part of the reseller.

And even misrepresentation can usually be solved by a disclaimer posted at the point of sale stating that used products are sold "As Is". Missing the downloadable content advertised on the box is little different than missing the free stickers and included manual advertised on the box.

Re:Maybe he should look at the box next time

[Khyber]

I got news for you.

Any sale is a retail sale unless you have a reseller license.

Check your local state laws on sales tax - it explicitly defines a retail sale.