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Fable III Dev: Used Game Sales More Costly Than Piracy

eldavojohn writes "A developer working for Lionhead, the studio behind Fable III, told Eurogamer that piracy is 'less problematic' than used game sales, from a business perspective. Mike West, the lead combat designer for the latest Fable, said, 'For us it's probably a no-lose even with piracy as it is. But, as I say, second-hand sales cost us more in the long-run than piracy these days.' So downloading a game is bad, but apparently stopping by a second-hand store to pick up a licensed physical copy of the game ends up hurting them even more."

252 of 342 comments (clear)

  1. Of course by GeorgeMonroy · · Score: 1

    A retailer gets the used game sale money and the developer gets nothing unless they have DLC for sale.

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    1. Re:Of course by Goaway · · Score: 2

      Except when it gets them a sale because the person buying knows he can recoup some of the cost by selling the game second hand.

    2. Re:Of course by Moryath · · Score: 3, Insightful

      And of course, the thought of making a game good enough and non-buggy enough that people do not want to just sell it off, never occurs to them.

    3. Re:Of course by cpu6502 · · Score: 2

      Sounds like me. There are lots of games I look at and think, "$20 is kinda steep," and then remind myself if I don't like it I can just sell it on amazon and recoup my costs.

      Same with books. Same with DVDs. (But not CDs unfortunately, which appear to be near-zero when used.)

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    4. Re:Of course by somersault · · Score: 3, Interesting

      In this age of Call Of Duty 3000, people even sell on games they like and get the sequel.

      The obvious solution is to release games at the 'used' price point, then everyone will consider it worth it from the start. There wouldn't be much of a used market if all the guys who wait for sensible prices buy the game as soon as it's released.. you'd still get some supercheap guys who want used copies, but not that many. Especially when physical media dies out! I wonder if people sell Steam accounts..

      --
      which is totally what she said
    5. Re:Of course by jaymz666 · · Score: 2

      What's a used downloadable game worth?

      Supercheap guys wait til the game goes on sale on Steam for under $5. Screw the high price of used games.

    6. Re:Of course by yarnosh · · Score: 1

      I doubt that's a huge factor. Sometimes you just get bored with games or they don't have a lot of replay value given their nature (highly story or puzzle based like Portal, for example). Doesn't necessarily mean there is anything WRONG with the game.

    7. Re:Of course by Danieljury3 · · Score: 2

      Especially when physical media dies out! I wonder if people sell Steam accounts..

      Its against the Steam Subscriber Agreement. "You may not sell or charge others for the right to use your Account, or otherwise transfer your Account."

    8. Re:Of course by chstwnd · · Score: 1

      except that the trade-in value for a used game is virtually negligible. Resale value never factors into my purchases. The biggest factor in my game purchases is "$50/60 is way too much for a game that I may finish in 20-30 hours and then never play again". after that, it's a question of quality - will it be so buggy that it annoys the crap out of me, and will it actually hold my attention for those 20-30 hours (minimum).

    9. Re:Of course by Khyber · · Score: 1

      "I wonder if people sell Steam accounts"

      Yep. Considering all the games I had were gifted and I paid NOTHING for them, you can believe I made myself a nice grip of change off an old steam account with over 200 titles, totally clean, legit, not banned from any server.

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    10. Re:Of course by Khyber · · Score: 1

      Good luck enforcing that contract in California *grin*

      We take Doctrine of First Sale pretty seriously here. That's why most big companies based here sue OUT OF STATE, to avoid our consumer-friendly laws.

      --
      Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
    11. Re:Of course by Moryath · · Score: 1

      I've boycotted Starcraft 2 until I can get a 3-pack, which will be the ACTUAL full game, for $60 or less.

      Of course, that's going to take a while. But if more people did like me, Blizzard (and a host of other companies) would learn they can't just turd out 1/3 of the game and demand tons of money for it while holding back the rest for "sequels" or "DLC."

    12. Re:Of course by Danieljury3 · · Score: 1

      I think valve just bans accounts that get traded as opposed to suing people.

    13. Re:Of course by chargersfan420 · · Score: 1

      I'm not trying to start a flame war here or anything, but I got a copy of SC2: Wings of Liberty for x-mas, and I think there is enough content in this game to make it well worth the $60. Granted, I know I only received 1/3rd of the story, but this game is so much better and has so many more features than SC1 that I can overlook that part. SC2 sales would suggest that enough consumers would agree with me that boycotting isn't really going to get Blizzard's attention. I'm also not a fan of their DRM model and it has its problems, but it is the only game that, to me, is worth putting up with the crappy DRM just to play.

      Perhaps for you, game = story, but there is so much more to the game than just the story (which by comparison was very lacking in SC1).

    14. Re:Of course by Khyber · · Score: 1

      They gotta be aware of it, first.

      We have tons of accounts made just to keep them thrown off-track of the real accounts being traded and used.

      Maybe one in every 1,000 banned accounts is an actual traded account. The rest were dummies generated by hackers for obfuscation purposes, or actual cheaters/caught pirates.

      --
      Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
    15. Re:Of course by eharvill · · Score: 2

      I guess I fall into the super cheap crowd these days. I've payed the high price of games (SC2, CIV5 and Portal 2 being the most recent) for many years and very few have been worth the price. I finally kicked my MMO habit a several months ago I have been buying a backlog of games that are 3-4 years old for $5 each as they pop up on Steam. I think I like my new game purchasing model. I doubt I will pay more than $100 a year for games going forward and will probably never play through half of the ones I do buy.

      --
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    16. Re:Of course by Vaphell · · Score: 2

      what features?
      matchmaking is about the only thing better in sc2 worth mentioning and you are comparing games created 12 years apart (good matchmaking was present in wc3 already). Sc1 was pretty much the state of the rts art when it came out. With SC1 you could play on any of 4 available gateways (now regions 60bucks a pop) plus there was lan allowing you to create ad-hoc lan parties anywhere.

      And you must be joking about the quality of sc1 story. Maybe it was not a literary nobel prize material but it's leaps and bounds above the sc2 level - it had memorable characters, superior dialogues and a lot of stuff was going on in the universe. Sc2 is a disaster story-wise - it is highly illogical, inconsistent and it pissed all over the lore established in sc1. Also out of 26 missions maybe 10 push story forward in a meaningful way, the rest is a filler doing nothing more but inflating the number of missions to justify 60 bucks, not to mention that many missions are just remade custom map modes from sc/wc3 times. Granted, mechanics are superior but again, 12 years passed and there are different standards now.

    17. Re:Of course by LordNimon · · Score: 1

      Exactly. I refuse to spend more than $10 on any game's DLC, but I will pay $60 for a retail game that has resale value.

      --
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      To mold a new reality... closer to the heart
    18. Re:Of course by HungryHobo · · Score: 1

      actually there's some decent fan-made maps out there for portal that lend it some more time and it's a fun one to mess around in.
      it is telling though that I enjoy myself just as much when replaying oblivion but dragon age was painful to try playing through again.

      freedom makes a game so much more replayable.

    19. Re:Of course by Aqualung812 · · Score: 2

      Assuming you watched them at all, did you also wait until all of the "Lord of the Rings" movies were available for one low price? After all, they wanted you to go to the movies 3 times, or buy 3 movies, even though they were all part of one story!

      Your point doesn't take into account if 1/3 of the story is just as much entertainment as a full story of some other game.

      Not a Starcraft 2 fanboy, I played Starcraft but have since moved to consoles.

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    20. Re:Of course by Kelbear · · Score: 1

      The future is where retail games come with a single-use unlock code tied to an online account. If the game is sold used, the next owner will need to pay for a new unlock code at a cost somewhere below full-retail (I'd guess maxing out at $15-20, possibly scaling prices according to the current demand)

      Sure, there will be problems and outcry over the unlock mechanic. There will also be reduced sales since those who buy new can't offset the initial cost with money from reselling the game.

      But people will still buy that game new (a few loud forum-goers and your local buddies do not represent the average consumer who won't know or care). People will still sell that game used, and people will still buy that game used because it'll still be cheaper than paying full price. The developer/publisher will get a relatively HUGE amount of money from these transactions because right now they get nothing on the used game sale. Also, they will be able to see how much money they are making on used game unlocks, and they won't be able to see how much money they've lost in first-purchases, so it'll just look like all upside and no downside.

      Thus, this structure will quickly expand and become an industry standard. It'll probably start with Activision on a Madden or a Call of Duty. These products enjoy the equivalent of monopoly power because of the status they've attained (Apple products enjoy huge margins because they've created enormous demand). They have the market power to start this, and survive the shift. The only alternative is proliferation of the Steam model, and price discounts scaling to match demand.

      One way or another, they /will/ get money on used game sales. They have the power, and the market is willing, even if the niche of hardcore gamers are not.

    21. Re:Of course by iinlane · · Score: 1

      Civ5 and Portal 2 are defenetely worth of the price.

    22. Re:Of course by Registered+Coward+v2 · · Score: 1

      In this age of Call Of Duty 3000, people even sell on games they like and get the sequel.

      The obvious solution is to release games at the 'used' price point, then everyone will consider it worth it from the start. There wouldn't be much of a used market if all the guys who wait for sensible prices buy the game as soon as it's released.. you'd still get some supercheap guys who want used copies, but not that many. Especially when physical media dies out! I wonder if people sell Steam accounts..

      Actually, depending on the game's demand, a high initial price followed by fairly regular and rapid price drops would be as effective and more profitable.

      Consider the economics involved. When a game first comes out, there are no used copies and a set number of people who must have the game. They will buy at a highr price then the used buyer, so it makes sense to extract the extra revenue. Game companies can tell, based on sales, when the used market starts to impact sales. They can either wait to drop the price, or drop the price in anticipation of the rise in availability of used games. The used market, because of the cash investment and risk, needs to make a high margin to be profitable. Look at the delta between the price they pay and the price they ask for a game - cut into the margin and used sales no longer are profitable. If they used dealer knows the price is going to drop quickly they can't offer as much for a game - which will make selling a game less worthwhile for the game. As a result, the used market dries up and the game company makes the money that the used market makes.

      The developers could also offer to buy back the game from the original buyer to prevent it from ever entering the used market; although that would add some costs to ship back the disk. Your purchase essentially becomes a rental model - except you decide weather to keep or return it. Alternatively, they could inscribe a unique ID on each disk; they buyback the disk and the used buyer cannot buy any of the items the original buyer got for free; or has to pay a higher price. Since used game buyers wouldn't know if a game was "returned" the value of used games would decrease by they added cost of the extras. By making it harder to find out (such as requiring a valid credit card/paypal account/etc before providing the price hay can make it time consuming to check every game a store buys prior to purchase.

      The goal is to destroy the margins on used games to make it unattractive to shops. Of course, shops that primarily sell ganes (new and used) will find themselves squeezed and probably go out of business - since used games provide a significant percentage of their revenue and profit.

      The developers, no doubt, would prefer not to do all of the above but simply get laws enacted to destroy the market for them and enable them to get higher prices and sales for longer periods over the life of the game.

      --
      I'm a consultant - I convert gibberish into cash-flow.
    23. Re:Of course by amnesia_tc · · Score: 1

      The obvious solution is to release games at the 'used' price point, then everyone will consider it worth it from the start.

      ...no? If you release the new game at the "used" price point, then the cost of the used game just drops. The used copy still looks more appealing because it is still cheaper.

    24. Re:Of course by 24-bit+Voxel · · Score: 1

      I wish I could sell you my copy of Civ 5. I'd sell it for 5 bucks, maximum.

      Civ 4 on the other hand....

    25. Re:Of course by mwvdlee · · Score: 1

      If everybody were to give money to Lionhead, the people who gave $100 would "costs" them more than the people giving $200.

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    26. Re:Of course by alexandre_ganso · · Score: 1

      The obvious solution is to release games at the 'used' price point, then everyone will consider it worth it from the start..

      No, the solution is make a game that you want to play more than once until you get to the end. Replay value is the solution!

      XBOX CASE:
      I bought that mirror's edge game, new, some years ago blahblah open world yeah parkour blablabla, highly rated etc. Damn frustrating game, from the start. I tried playing it again last week. The game is FRUSTRATING. I would NEVER play that crap again.

      Now think of this latest assassin's creed game. There was some time since I last played it, and when I turned on the console, I realized there is some new levels. Besides, the game is so good that I want to play it over and over.

      WII CASE:

      Super Mario Galaxy vs Cooking Mama.

      Guess which one I put for sale?

    27. Re:Of course by somersault · · Score: 1

      When you say frustrating, I think you mean "challenging in that I have to actually use skill". I found Mirror's Edge fun, completed it in a couple of days. It's quite short though and doesn't have a whole lot of replay value. I wouldn't call it open world, it's very linear.

      I enjoyed the movement in the first assassin's creed, though I haven't played the sequels yet.

      I started doing Parkour last year, and when I tried Mirror's Edge again it was a little frustrating that I couldn't do some of the things I'd be able to do in real life, but overall the game works fine..

      I agree with you that games need to have replay value, and I enjoy sandbox style games the most, but don't simply complain that you sucked at a game, therefore it's a bad game..

      --
      which is totally what she said
    28. Re:Of course by somersault · · Score: 1

      If the game only costs £10 to begin with, then a lot more people will buy it before there are any used copies available. Like I said, there will still be some tight asses who will always go for the lowest price point, but I don't think that will be a large percentage of buyers if the base price is sensible.

      --
      which is totally what she said
    29. Re:Of course by somersault · · Score: 1

      Alternatively, they could inscribe a unique ID on each disk; they buyback the disk and the used buyer cannot buy any of the items the original buyer got for free; or has to pay a higher price. Since used game buyers wouldn't know if a game was "returned" the value of used games would decrease by they added cost of the extras. By making it harder to find out (such as requiring a valid credit card/paypal account/etc before providing the price hay can make it time consuming to check every game a store buys prior to purchase.

      They already do stuff like this - you get a code with your pre-order, or in the game box, then you redeem it on the Xbox/PSN stores. After that the code is presumably useless.

      The developers want paid too, but I think it's more the publishers that want to do all this stuff. As a salaried developer (not in games), I think I'd just release my game and try to make it worth the original asking price. For example look at the mobile games market.

      --
      which is totally what she said
    30. Re:Of course by eharvill · · Score: 1

      P2 was worth the price, Civ5 not so much. I actually got a pretty good deal on P2. $30 plus a $10 Best Buy gift card I think? So I got that and How to Train Your Dragon BluRay for $35 total after it was all said and done. Portal 2 is a great game and I am glad I got such a good deal on it. The $45 - $50 a lot of people paid is a steep price for such a short game however.

      --
      At night I drink myself to sleep and pretend I don't care that you're not here with me
    31. Re:Of course by somersault · · Score: 1

      There is often more than one way to do something in Mirror's Edge too, but yes it does take more skill than Assassin's Creed. I love racing games and challenges, so I enjoyed it.

      --
      which is totally what she said
    32. Re:Of course by black_lbi · · Score: 1

      The only problem I'm having with used games sales is the retailer making a profit off it. That's why I prefer buying and selling directly to/from gamers (using game forums or other similar means).

    33. Re:Of course by Hellpop · · Score: 1

      EA is already doing this. Check out Mass Effect 2 and Dragon Age 2 for examples.
      Buy a used game and pay an extra 15$ for an account that lets you buy the DLC, plus the cost of the DLC.

      --
      "People are stupid; given proper motivation, almost anyone will believe almost anything."
    34. Re:Of course by djnforce9 · · Score: 1

      Even though you are only getting 1/3 of the story, that particular 1/3 is as lengthy as a full game should be. It's not like "Warcraft III" which had 4 campaigns which were relatively short. If that's all we got (i.e. the amount of a gameplay a single Warcraft III campaign would provide), then it would most certainly not be worth it.

      I do agree though that it would be nicer when you can get the full set of campaigns in one nice package but sadly you'll be waiting years as Blizzard is not exactly known for releasing things as quickly as possible.

    35. Re:Of course by vegiVamp · · Score: 1

      Yep, I thought as much.

      However, with Steam actually bothering to bring the price of games down as they age - compared to traditional publishers who just take it out of the market if it no longer sells enough copies at full price - I find myself not particularly bothered, from a monetary perspective.

      Wether I pay 15 bucks for a used copy, or the same amount for a Steam copy, my pockets don't feel the difference. Upside of Steam is that I don't risk getting scratched media or used DLC codes; downside is that I can't resell the game to get an additional 5 bucks towards another game.

      All in all, it balances out and Steam makes my life easier. Which is not to say that I still don't like the idea of not being in full control of something I buy, but that's a different discussion.

      --
      What a depressingly stupid machine.
    36. Re:Of course by chargersfan420 · · Score: 1

      Replying to the parent poster, I was speaking specifically about the storyline / campaign mode of the game. Lets set multiplayer aside in this discussion (which I will agree it does have some missing features such as a full complement of units or LAN play, but it is basically an entire game worth $60 if all you're going to do with it is play multiplayer).

      Perhaps you could argue that the story in SC2 so far has been pretty lacking, but we can only compare 1/3rd of the SC2 story to SC1, which you could argue is two full stories, including Brood War. That's not really a fair comparison. But they added highly detailed cutscenes between every mission, they made the different areas of the Hyperion that you could explore, they made lots of things you could click on in there that does stuff, they added the armoury and tech research, and they also made that arcade game in the bar. I'm not suggesting any of these things are killer features, but it is clear that they spent a fair amount of time on a visually stunning game, and I feel that they are well within their right as developers to ask for $60 in compensation for all of their hard work. If you don't feel that the price point is adequate, play some other game.

      Also, your comment about the 26 missions with only 10 advancing the story, that is fairly understandable from their point of view. They needed to make enough content to justify the price, and they did. The fact that only 10 advance the story is to allow you to play a lot of the missions in any order you choose, giving you different combinatons of units as you go. That bodes well for the re-playability of the game. I look forward to getting siege tanks before I do the Great Train Robbery mission on my next playthrough.

    37. Re:Of course by space_jake · · Score: 1

      What you're saying is Portal 2 is worth 40-60% of the price?

    38. Re:Of course by eharvill · · Score: 1
      Yup.

      It's also worth 100% of the MSRP although I would have been upset if I had paid that price (and likely would have if it was the only price option). Assuming there is free DLC in the near future, MSRP doesn't look nearly as bad as more DLC becomes available.

      And I have no problems waiting to play games either. I just finished HL2 about 3 weeks ago. I think it came free with a video card I purchased nearly two years ago. Great game and now I can purchase episodes 1 & 2 at a fraction of their original cost. About $8 each now I think.

      --
      At night I drink myself to sleep and pretend I don't care that you're not here with me
  2. Don't tell the car companies by MrEricSir · · Score: 4, Insightful

    Ford, Toyota, etc. would LOVE it if the only option was to buy new.

    --
    There's no -1 for "I don't get it."
    1. Re:Don't tell the car companies by Wyatt+Earp · · Score: 3, Insightful

      They all still make a ton of money off spare parts and dealerships wouldn't survive without the shop business.

    2. Re:Don't tell the car companies by M0j0_j0j0 · · Score: 1

      Car parts are the real bussiness on car industry, but yet the scrap yards exist , ohhh but look at the quality.

    3. Re:Don't tell the car companies by ehrichweiss · · Score: 2

      Bad analogy. Most car parts you find in the parts stores come from 3rd parties, not the OEM. If your car is in warranty then you'll likely get them from the dealer who in turn gets them from the OEM but that's usually as far as it goes unless it's a "dealer-only" item in which case it's also a part that rarely breaks or is hard to reproduce otherwise(the control computers being a good example) and while those do bring in a decent profit when they're needed, they are rarely needed often enough to justify your statement.

      --
      0x09F911029D74E35BD84156C5635688C0
    4. Re:Don't tell the car companies by gnasher719 · · Score: 2

      Ford, Toyota, etc. would LOVE it if the only option was to buy new.

      If it was totally illegal to sell or buy used cars, then the majority of the people who would usually buy a new car every two years would instead buy cheaper cars and drive them for a very much longer time. Those who find it hard to afford a new car would buy the cheapest new car they can find and drive it until it falls apart.

    5. Re:Don't tell the car companies by ehrichweiss · · Score: 1

      Nope. See my post above this one. This is a massively flawed analogy. Most parts are 3rd party, not OEM. For over 25 years I have been buying parts and repairing cars on at least a weekly basis and in all that time I've only *had* to buy parts from the OEM a handful of times(maybe 5-10 times at most). Hell, it's more likely that I'll need the field service manual from the OEM than any parts.

      --
      0x09F911029D74E35BD84156C5635688C0
    6. Re:Don't tell the car companies by drcheap · · Score: 1

      Car analogy fail.

      Used cars have always been part of the market, and always will be. Some people can afford and/or want new cars, and they get them. Others are quite alright with a used car, which is not the same as the new one.

      It's different with software though, because other than perhaps some missing packaging (that is of no real value anyway), the used item is equally as good as the new one. So people aren't "settling" for used software by compromising on features/cleanliness/etc. by going used...they are just simply paying less and getting the same end result.

    7. Re:Don't tell the car companies by Wyatt+Earp · · Score: 1

      Toyota is huge on sourcing from Toyota, hence the shortage in Toyota parts since the Tohoku Earthquake.

      Same with things like engines, transmissions, control computers.

      Car makers and their OEM partners make money off older cars while garage business is what keeps car dealers profitable.

    8. Re:Don't tell the car companies by cpu6502 · · Score: 2

      Some smarter companies, like Volkswagen, are making it impossible to fix your own car by using non-standard sockets/wrenches. So that means you HAVE to go to the garage, and typically not an independent. You have to go to someone with the necessary VW tools.... aka the dealer.

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    9. Re:Don't tell the car companies by toxonix · · Score: 1

      Yeah that would mess up my way of doing things entirely. I buy the least expensive junk yard bound POSs and make them functional so that I can drive them into the ground repeatedly. The (game) industry just needs to bite it and realize that there always has been, and always will be an aftermarket.

    10. Re:Don't tell the car companies by Chris+Burke · · Score: 1

      Okay, but I'm guessing you're not a mechanic working at a car dealership's garage. For them it's a question of if and when they can't buy OEM.

      There's a lot of money being made by the car companies in that part of the food chain.

      --

      The enemies of Democracy are
    11. Re:Don't tell the car companies by 0123456 · · Score: 2

      Or you know, you could buy the tools to work on your car. Or possibly even rent a tool kit.

      Not if Car Company X patents their innovative tool design; just because they're made for $5 a set in China doesn't mean you can buy them to use yourself.

    12. Re:Don't tell the car companies by ooloogi · · Score: 2

      It's probably more likely various odd 12-point drives, or a specialty 33-spline bit referred to... not standard metric tools. They are available, but for the cost of acquiring the tools, makes it more worthwhile to get the job done at an authorised dealer for the average owner.

    13. Re:Don't tell the car companies by ooloogi · · Score: 1

      Regardless of where you buy most of your parts, car companies still make a lot of money in the sale of "genuine" parts.

    14. Re:Don't tell the car companies by MrEricSir · · Score: 1

      But how long of a useful life does software even have? Once I'm done with a copy of say, Microsoft Office, it's probably at least a couple versions out of date.

      With games I'm less likely to hold on to them, but it's still not going to be a new release by the time I've played it.

      --
      There's no -1 for "I don't get it."
    15. Re:Don't tell the car companies by Balthisar · · Score: 1

      That's parts stores, and parent is talking about dealerships. Dealerships will sell only OEM parts. And good (independent) mechanics will let you specify OEM or third-party. For some things it doesn't matter, for others it does.

      --
      --Jim (me)
    16. Re:Don't tell the car companies by Darinbob · · Score: 1

      Sure, the game companies lose money on lost sales. But they should just suck it up! The rest of the world has to deal with this, why can't they? Even with copy protection and encryption I am still allowed to give away my old DVDs and Blu-Ray discs if I want to. Games should be allowed in garage sales.

      The game companies are not really "losing" sales. Most of these are sales they would never have had without the option of transferring a game. Sometimes people are on a budget and can't pay the absurd prices game companies charge, or sometimes someone just wants to give a game to a sibling. The seller of the game may decide that the $60 was wasted and the game is awful and just want to trade it in for something else. Or maybe they liked the game and are giving it to a friend to try.

      Basically the game companies need to stop whining, and also stop with their evil DRM schemes so that we can only ever rent games temporarily and never buy them outright.

    17. Re:Don't tell the car companies by drinkypoo · · Score: 1

      Bad analogy. Most car parts you find in the parts stores come from 3rd parties, not the OEM.

      Indeed, anything with a cast component is probably rebuilt by a third party from a discarded OE pull. However, for especially new and expensive vehicles there are often dealer-only parts, and often the dealer is the only source for some parts. I have a 1992 F250 and there's a bunch of stuff that only seems to come from the dealer. Unfortunately, they have (recently) discontinued many of them, like the (brass) fuel level float. They've gone through a whole bunch of models though and I'm sure they would like to see my truck hurry up and go away already.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    18. Re:Don't tell the car companies by Ihmhi · · Score: 1

      Yes, but thankfully not all manufacturing is dead in this country, and I'd wager that every major city has a freelance machinist or two.

      "Make me a wrench that works with this" is pretty easy as far as machining tools goes.

      And yes, it would probably be a patent violation, but if cash trades hands under the table no one's gonna know about it.

    19. Re:Don't tell the car companies by hitmark · · Score: 1

      And here i thought shit like that got standardized because they got sick and tired of every last screw factory had a proprietary design back in the industrial revolution.

      --
      comment first, facts later. http://chem.tufts.edu/AnswersInScience/RelativityofWrong.htm
    20. Re:Don't tell the car companies by AmiMoJo · · Score: 1

      Fortunately those same Chinese guys don't really care about patents and will gladly sell you a set via TaoBao/eBay/etc.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    21. Re:Don't tell the car companies by St.Anne · · Score: 1

      They already do that. It's called "Leasing". Where do you think all those GM EV-1's went....

    22. Re:Don't tell the car companies by ginbot462 · · Score: 1

      They're probably $500 Hazet tools.

      --
      Atlas Shrugged : Thematic Story :: Battlefield Earth : Organized Religion
    23. Re:Don't tell the car companies by vegiVamp · · Score: 1

      The EU was trying to do something about that, IIRC. Dunno how far along they got.

      --
      What a depressingly stupid machine.
  3. idiot analysis by Anonymous Coward · · Score: 1

    "So downloading a game is bad, but apparently stopping by a second-hand store to pick up a licensed physical copy of the game ends up hurting them even more"

    No, they're saying that more people buy it second-hand than pirate it. It's equally bad for them if you do either one.

    1. Re:idiot analysis by mrcvp · · Score: 2

      And the second hand buyers have actually proven they are willing to pay some price for the product, and not nothing at all.

    2. Re:idiot analysis by Nadaka · · Score: 5, Insightful

      No value is "lost" in the second hand market. A lot of people find buying a game for $69.95 to be ridiculous, and will never ever do it. Those "sales" are already "lost" because the producers are placing the price higher than the value. Make games a better value and you will get more sales.

    3. Re:idiot analysis by ehrichweiss · · Score: 1

      This needs to be modded to +11. If only the music, movie, software industry would figure this one thing out...we're willing to pay but we're NOT willing to mortgage our houses for a bunch of ones and zeroes that will be next to worthless in under a year.

      --
      0x09F911029D74E35BD84156C5635688C0
    4. Re:idiot analysis by osu-neko · · Score: 1

      "So downloading a game is bad, but apparently stopping by a second-hand store to pick up a licensed physical copy of the game ends up hurting them even more"

      No, they're saying that more people buy it second-hand than pirate it. It's equally bad for them if you do either one.

      Um, no. It's not equally bad when someone who wasn't going to buy your game no matter what downloads it, costing you no sales at all, vs. someone who buys it second-hand, costing you a new game sale.

      --
      "Convictions are more dangerous enemies of truth than lies."
    5. Re:idiot analysis by dgatwood · · Score: 3, Insightful

      Oh, it's worse than that. The person who downloaded it might have decided that the game was really good, and might then decide to actually buy a new copy. It's safe to say that someone who buys a used copy will not buy a new copy.

      So yes, used sales are a lot worse than piracy from pretty much every perspective except one: there are a limited number of used copies of a title, whereas the number of pirated copies is unbounded. To that end, piracy has the potential to be more harmful than used sales when the number of people who pirate a piece of software who would otherwise have bought it exceeds the number of people who buy it used. In practice, this means that used sales are worse than piracy across the board.

      That doesn't mean that used sales are bad, mind you. Then again, in some cases, neither is piracy, but only when "I wouldn't have bought it anyway" is more than just an excuse for being a cheapskate.

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

    6. Re:idiot analysis by damiangerous · · Score: 1

      Why are you assuming that someone who pirates it would not buy it new if piracy was not an option, but also assuming that someone who buys it used would buy it new if used weren't an option?

    7. Re:idiot analysis by Luckyo · · Score: 1

      Probably because price difference on new vs used is often negligible, while remaining significant vs free.

    8. Re:idiot analysis by WorBlux · · Score: 1

      If you buy it used, that means there was some price which you were willing to pay for the game. If you pirate it, the price you're willing to pay for a game is to low to bother with, and you probably wouldn't have bought the game if you couldn't pirate it.

    9. Re:idiot analysis by kaizokuace · · Score: 1

      Make games a better value and you will get more sales.

      Or meet the customers at the price they will meet at! Selling products is a 2 way street that seems to be something of forgotten lore.

      --
      Balderdash!
    10. Re:idiot analysis by Chris+Tucker · · Score: 1

      Needs repeating!

      "we're willing to pay but we're NOT willing to mortgage our houses for a bunch of ones and zeroes that will be next to worthless in under a year."

      Indeed! Ever since Netflix came into my life, I've only bought a few new DVD box sets, mainly anime and animation. Why buy The Green Hornet when I'm only going to watch it once? Netflix gets ~US10.00 a month from me and as I'm close to the regional Netflix distro center, if I drop off a DVD first thing in the morning, I can average a DVD every other day via my one DVD at a time plan.

      As for music, if it's just for background noise, Comcast has Music Choice. I usually have the Jazz channel selected, and if I hear something I like, I just glance at the TV and note the artist and album. Then off to Amazon and eBay to see who has the least expensive used CD. I can't recall the last "new" CD I bought that wasn't from a local indie band. As for the RIAA companies, I will never buy a new CD from any of them. Used is the only way to go for me.

      --
      Guaranteed! This comment 100% Anthrax free!
    11. Re:idiot analysis by KnownIssues · · Score: 1

      No value is "lost" in the second hand market. A lot of people find buying a game for $69.95 to be ridiculous, and will never ever do it. Those "sales" are already "lost" because the producers are placing the price higher than the value. Make games a better value and you will get more sales.

      I think it's more accurate to say "not all sales" are lost. Possibly even "most sales", but not none. You're right there is a subset of potential buyers of a game that would never even buy the game at full retail. But are you sincerely claiming that there are *no* potential buyers who given a choice between retail or not playing the game at all would choose to go without? I don't buy that.

      That doesn't mean I believe we should end second hand sales. Game devs are complaining about a "theoretical" lose of sales. Wallet makers are losing sales every time someone doesn't steal my wallet, but no manufacturer is going to claim theft is good for their sales and we should avoid prevention of theft. Second hand sales--and borrowing/loaning (a scenario where *nobody* makes money I would point out)--might be counter to profit-making, and possibly carry the seeds of communism, but they are arguably a good thing for a healthy society, and if that means someone doesn't get to make quite as much money as they could have, so be it.

    12. Re:idiot analysis by Nadaka · · Score: 1

      The point I was making is that if they wanted to get in on the "less than $69.95" game market that second hand sales represent, they should possibly think about selling games for less than 69.95. It is not a lost sale, it is a sale that the producer decided to not make by setting the price so high.

  4. Not only is it worse.. by Modern · · Score: 1

    But the used games give you cooties.

    1. Re:Not only is it worse.. by idontgno · · Score: 1

      And so do girls. You make it sound that this is a bad thing.

      This being slashdot, I suspect it's just fear of the unknown.

      --
      Welcome to the Panopticon. Used to be a prison, now it's your home.
    2. Re:Not only is it worse.. by Luckyo · · Score: 1

      This brings word "used" to a whole ... old(?) meaning.

  5. First Sale Doctrine by Ferzerp · · Score: 1

    SCOTUS needs to address this, badly.

    1. Re:First Sale Doctrine by interkin3tic · · Score: 1

      Ugh, I don't want to see what such a corporate-happy supreme court will do with that.

      [Read in a Scalia voice]: "As the corporation made the product, and as the corporation is a person and the consumer is not a person, the corporation retains the rights to the game and the money. Selling a used game is essentially triple theft: it deprives the corporation of it's rightful copy of Fable VI, it deprives the money paid to the person selling the game that should be going to the corporation, and it deprives the money the consumer would have paid to the corporation for the new game. What? I counted that last one twice? Whatever.

      Furthermore, the defendant admits his dog watched him play Fable VI. That's another theft."

    2. Re:First Sale Doctrine by Tharsman · · Score: 2

      This has nothing to do with the First Sale Doctrine, and it is not really an issue of being able to trade your used copy. First off, we have to see what the guy actually said in the article:

      "But, as I say, second-hand sales cost us more in the long-run than piracy these days."

      The reason second hand sales cost them more is not obvious unless you give it some thought. One reason is that pirates are very unlikely to had bought a legitimate copy either way, they never saw enough value in the product to pay for it. The guy that buys a used copy, though, did see the value to open his wallet. So, although you can't say that a pirated copy was a lost sale, you may be able to say that about second hand copies.

      I would had liked to see the full transcript of that interview, too. For some reason I was not able to find any mention to that specific topic from within the printed interview itself (ponder what else was left out.) As a developer, personally, I have my own view on the topic and it's obviously biased towards a developer standpoint, but I also buy games and have my own view as a consumer stand point (unlike many suits that just sell the games and only care to make the money.)

      As both, a consumer and a developer I have a grudge with chains like GameStop. Specially with hot anticipated games, they make sure to barely buy enough copies to fulfill pre-orders, even knowing there will be people interested to buy new copies weeks to come. They then litterally harass customers to buy the used copy they just drastically underpaid buying back from the customers that either did not like the game that much or cant afford to buy more games without selling back their games as soon as they beat the last one they bought.

      Over the years, and dating back all the way to my days as a student, I have witnessed many convinced to buy used copies for just 2 or 3 dollars less than the new one. These consumers are convinced that they are unlikely to find a copy anywhere due to the "hot nature" of the title they want and that they can not only have it now by getting the used one, but also get away with paying 2 bucks less. At the end of the day these people may walk home with games lacking cases, thorn pages in manuals (if one is included) or disks and cases full of stickers that forever will remind you of how you or your mother got ripped off.

      This is only the way the buyer of used games can get shafted. The ones that traded the games in may had it worse. The prices they pay for these games in trade in are horribly low and would never beat you selling the game yourself in eBay or Amazon.

      So we have 3 victims, and one common cause: GameStop/EB.
      *They actually put extra effort to avoid helping publishers even by accident.
      *They attempt to buy the same products back at unfairly low price.
      *Finally they harass consumers and do anything they can to sell them poor condition copies for pennies in savings.

      I buy used games once in a while, and when I do I do so from either eBay or Amazon (and sometimes from friends first hand.) I nearly always end up with a far superior copy of the game, and I know the original buyer gets a better deal. At the same time, I know that the sources did not go out of their way to shaft either party or hurt the publisher that spent millions developing the games I love to play.

      From a plain developer standpoint, I can see any developer annoyed at GameStop for their practices and I doubt any developer (not talking about publishers) very likely is specifically referring to those practices when they criticize the used game market.

      The worse part is that many developers end up feeling they must either go fully digital or offer growing chunks of the game as "one time digital download bonuses" that a buyer of the used copy will be forced to pay for (potentially making used copy purchase too expensive to be worth it) or making many of these games useless years from now when the services are down.

      As a side not in that line, i

    3. Re:First Sale Doctrine by Darinbob · · Score: 1

      The guy buying a used game for $5 may not ever have purchased that game for $60. It's not a lost sale in that case. If I get ten used games for free from a friend of mine and play them once each, none of those count as lost purchases since I would never have bought them in the first place (and chances are half of those games have had their publishers go out of business).

      Now if you're thinking about scams about selling used games for $59 to undercut the new $60 prices you may be right that those are lost sales. But that should never be an excuse to screw everyone else. People have the legal right to sell or give away property that they purchased no matter how much teeth gnashing it causes in publishers who want a piece of that money.

    4. Re:First Sale Doctrine by Tharsman · · Score: 1

      The guy buying a used game for $5 may not ever have purchased that game for $60. It's not a lost sale in that case. If I get ten used games for free from a friend of mine and play them once each, none of those count as lost purchases since I would never have bought them in the first place (and chances are half of those games have had their publishers go out of business).

      Now if you're thinking about scams about selling used games for $59 to undercut the new $60 prices you may be right that those are lost sales. But that should never be an excuse to screw everyone else. People have the legal right to sell or give away property that they purchased no matter how much teeth gnashing it causes in publishers who want a piece of that money.

      Yes, I thought I made it clear (and perhaps too verbose) that I am talking about cases there is only a few dollars of difference. Note the guy in the article was never quoted as saying that all re-sale must stop. And nor did I state that person to person sales are bad. The only thing that hurt are these stores that mass-purchase used games for pennies and sell them at near new-price. I don't think there is any legal way to stop that, and even if there was, I am not sure if they should be any law to do so (since those laws will likely be twisted to go hunt the small people selling at eBay once all retail are out of the way.)

      In my post I was just trying to express the reasoning behind the feeling, and who the real responsible party for this is (GameStop/EB.) I also noted some approaches some publishers are starting to take, but I didn't really suggest anything be done about it. It's just a clarification of the true situation.

    5. Re:First Sale Doctrine by Libertarian001 · · Score: 1

      I all I heard was how you (or more accurately, your contemporaries) are such a crappy tradesman that people would willingly take a huge loss on your product from trading it in rather than keep it, and that it takes a while for word to get out that it really was a lousy game.

      If your damn games weren't $65 then this wouldn't be an issue.

    6. Re:First Sale Doctrine by HLJ76 · · Score: 1

      Right, Gamestop has proven 65 is too high. They should lower that to 62.

    7. Re:First Sale Doctrine by Tharsman · · Score: 1

      I all I heard was how you (or more accurately, your contemporaries) are such a crappy tradesman that people would willingly take a huge loss on your product from trading it in rather than keep it, and that it takes a while for word to get out that it really was a lousy game.

      I take it you cant foresee the fact that most people are crappy tradesmen, and this was proven by the recent housing market collapse, even traders by trade proved how bad they can be at it. Odd thin is, you seem to suggest the option to be a "bad tradesman" is to just keep the game. That's not the option, the option is to find a more profitable channel to sell your game, even if it may take a bit longer to do so.

      As for the game "being crappy", just go to the stores and spend a while there. You will see even the best quality games get traded in. Off course, the game may be considered crappy by the person that traded it in, but its not about quality, just that user's perception. Most trade-ins are not because of quality, though, but because of the game being beaten and then just sold fast because they are just bad tradesmen.

      Finally, I don't think the price is the issue, since a 65 dollar game tends to be sold by GameSpot for 60-63 dollars used. That's not a significant difference, and far from worth the condition the games tend to be sold at. For the most part, the used game is sold at almost the same price as the new copy. And this also affects games that are at much lower price points.

  6. Add ons by alexmogil · · Score: 1

    Can't they make more pure profit by selling the rest of the game... I mean wait.. "DLC" in the marketplace?

    --
    A winner is you!
  7. Well boohoo... by Anonymous Coward · · Score: 1

    ...but the second-hand market for games is legal.

    1. Re:Well boohoo... by SaroDarksbane · · Score: 1

      For now, anyway. Give it a few more years.

    2. Re:Well boohoo... by sdnoob · · Score: 1

      we've gone past serial numbers and cd checks to online activations and DLC...

      now it won't be long until the one-time-use nature of DLC codes makes it over to the activation codes used for the game itself.....

      one-time-use activation codes for the actual game, along with continued migration to non-transferable digital-only product delivery will destroy the used game market... even for consoles.... turning any physical media into nothing more than marketing tools and demos, and the occasional rootkit installer.

      there's enough of the clueless masses out there giving money hand-over-fist to game publishers that the relatively small percentage of gamers that do speak up about this won't matter any to the publishers, and they will just continue to stomp out rights customers once had until there are none left.

    3. Re:Well boohoo... by Dutch+Gun · · Score: 1

      Well, consumers will only be pushed so far. Divx ring a bell? Not talking about the codec, either.

      People always talk about the slippery slope as though consumers won't eventually rebel, or that the entire game developent industry is a single cabal. Keep in mind that game development is a highly competitive industry, which means that if one publisher or console maker creates unhappiness among consumers, it leads the door open for a developer who will make their customers happy.

      --
      Irony: Agile development has too much intertia to be abandoned now.
  8. This doesn't surprise me at all. by rap_dot_com · · Score: 1

    It is very likely that the people who are pirating the games are the same people that wouldn't be able to buy the game in the first place, or who are unaware of how well/poorly the game will play and forgot that demos exist. I do appreciate Lionhead's rationale in that the only way to stop pirates is to just talk to one and help them understand why this is a problem. At least they aren't trying to cover up everything in some crazy anti-piracy DRM that ends up causing more of a hassle than it's worth it to play the game. Of course, this is why some people champion systems like Steam, where it is much harder to pirate games.

    1. Re:This doesn't surprise me at all. by demonbug · · Score: 1

      Of course, this is why some people champion systems like Steam, where it is much harder to pirate games.

      Plus the added benefit of completely eliminating the second-hand market.

    2. Re:This doesn't surprise me at all. by Totenglocke · · Score: 1

      I despise pirating games - however, I DO pirate them now due to DRM. For instance, I own a copy of a game and was going to purchase the GOTY edition with the DLC and expansion included - then I found out that they've already turned off the DRM server, so if you buy the GOTY edition, you can't access any of the DLC that you purchased. Guess what I did instead of clicking "add to cart" on Amazon? I jumped to the pirate bay instead.

      I gladly pay for DRM-free games and the lower the price, the more willing I am to take a chance on a game and buy it (hence why I grab so much stuff on gog.com). If they want to improve sales, they need to ditch DRM and create a better product - not demonize people who sold what they legally purchased.

      --
      "The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." ~Thomas Jefferson
    3. Re:This doesn't surprise me at all. by Gripp · · Score: 1

      i would gladly pay MORE for DRM free games/music/books/movies/etc.
      as for the parent poster - i agree. it does occur to me that the moment i started earning enough to be able to afford my gaming addiction i started buying them instead of modding my xbox... and to the point of TFA even though i could afford them i almost always wait until i get them for
      however, now i mostly purchase gmaes from Live anymore... something about not having to drive, snoop thru bins and wait in crazy lines simply for a new game is worth the extra cash.

    4. Re:This doesn't surprise me at all. by TheTyrannyOfForcedRe · · Score: 1

      It is very likely that the people who are pirating the games are the same people that wouldn't be able to buy the game in the first place, or who are unaware of how well/poorly the game will play and forgot that demos exist.

      What world do you live on? Here on Earth playable demos have largely gone the way of the dodo. What percentage of games have them? 5-10%?

      --
      "Liechtenstein is the world's largest producer of sausage casings, potassium storage units, and false teeth."
    5. Re:This doesn't surprise me at all. by kcbnac · · Score: 1

      Which leads to me not buying games at launch unless I'm SURE I'm going to get my money's worth. These days, its usually "Hey that looks good, but not for multiplayer only (which you generally want to get close to launch, so you can keep up with everyone else and not get stomped a year later) - so I'll add it to my wishlist and pick it up on sale for $12 at Christmas..."

    6. Re:This doesn't surprise me at all. by kcbnac · · Score: 1

      What game is that? (So that the developers and publishers can be ostracized appropriately) - AND held up as an example.

    7. Re:This doesn't surprise me at all. by Totenglocke · · Score: 1

      Dragon Age - I know it's not TECHNICALLY a GOTY edition, but that's generally what bundles of the game + expansion + DLC are referred to as. I was not happy to find comments from other people who'd bought it and found the servers turned off.

      --
      "The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." ~Thomas Jefferson
  9. Skillsets by Homburg · · Score: 2

    Game developer good at developing games, not so good at understanding economics.

    1. Re:Skillsets by LordLimecat · · Score: 1

      Whats hard to understand here? Pirated games were not necessarily sales, whereas someone plunking down cash for a used game may very well have bought new-- but used, no money goes to the dev.

      Id say from a business perspective his comments were accurate. And youll note that he said "and theres not much we can do about it", not "we're hoping to crack down on this soon".

    2. Re:Skillsets by nedlohs · · Score: 1

      Some people will buy the game who wouldn't have otherwise because they can sell it to someone else once they are done with it. So money goes to the dev that wouldn't have if there was no second hand sales of games.

      Some people will sell some other game they own and use the money they get as part of the payment of buying their new game. So money goes to the dev that wouldn't have if there was no second hand sales of games.

      So there's gains and losses, and they likely have no idea what the relative value of them are.

      Of course there's something they can do about it. Sell the game for $50 with codes for DLC that you charge $100 for otherwise. And make the that DLC provide something essential to the game. There you go second hand market destroyed.

    3. Re:Skillsets by Lemming+Mark · · Score: 1

      I think his failure in understanding is that used sales help lubricate the market - if people are unable to trade in games that they've already played, they'll have less of their disposable income to spend on new games. And if you're stuck with a game once you've bought it, you're going to be more fussy about which games you get and be less likely to buy them early after release. It's wrong to think of used sales as "sales we should have had", which seems to be an idea gaining traction in the games industry.

      A valid complaint in this vein would probably be that the big game stores that are a major channel for selling the new games also (ab)use that position to strategically divert customers into used game deals that are actually pretty poor value for the customer *and* for the publisher / developer. But that's not a problem with used sales per se but with how the big chain stores manipulate them.

    4. Re:Skillsets by petermgreen · · Score: 1

      He may have said that but the fact is.

      1: PC game vendors have been cracking down hard on the used game market ever since valve showed the industry they could get away with it.
      2: Console game vendors have been taking more "baby steps". They still allow resale for the moment but they increasingly include content that can only be registered to one account.

      --
      note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
  10. The used games market only hurts bad games by Anonymous Coward · · Score: 1

    People only sell games that aren't good enough to play after playing through once. Thus the used game market only damages bad games, enabling the consumers to express their opinion after they bought the product.

    1. Re:The used games market only hurts bad games by Anonymous Coward · · Score: 1

      Super this. I still own games I bought for my PSX when it was new. Not all of them, mind you, just the ones I like to blow the dust off of and run through again because they're genuinely enjoyable. Hell, in some cases, I buy a game twice. Got Oblivion for PS3 and PC both because it's a different experience each way.
      I'm going to buy the facelifts of ICO and SOTC when they come out. I think I've bought Gunstar Heroes for every system I've been able to except Game Gear.

    2. Re:The used games market only hurts bad games by demonbug · · Score: 1

      People only sell games that aren't good enough to play after playing through once. Thus the used game market only damages bad games, enabling the consumers to express their opinion after they bought the product.

      Not really. Even good games are usually available used reasonably soon after the game hits retail. There are apparently a lot of people that get rid of games as soon as they've played through it once (of course, it can take months or even years for GameStop and their ilk to set reasonable prices on used games - it does disgust me somewhat when they are selling a brand-new game for $60, and the used copy for $55 when you know they are only paying $25 for the trade-in).

      Personally I've never sold a game back to one of the retail stores (or anyone else for that matter), just in case I might want to pick it up again in a year or two... or five... or ten...

    3. Re:The used games market only hurts bad games by v1 · · Score: 1

      People only sell games that aren't good enough to play after playing through once. Thus the used game market only damages bad games, enabling the consumers to express their opinion after they bought the product.

      I think that's over-generalizing. They're not very common, but games do come out from time to time that have very good replay value. One of my favorite examples was Deus Ex. Not only did it let you ally yourself with one of three factions, (and change loyalties on a whim) but it allowed for somewhere around a dozen irreversible character customizations that defined polar opposites in various aspects of gameplay. Even after you'd beat the game in all three of the major variations, you could still go through and try for different scenario plays. Do you prefer to run faster or run quieter? Carry more or jump higher? Greater strength or steadier aim? There were lots of choices that you had to make that would define how you had to play the game down the road, making the levels play very differently.

      --
      I work for the Department of Redundancy Department.
  11. not a good conclusion by v1 · · Score: 4, Interesting

    The summary doesn't account for the very real possibility that a much higher percentage of used game buyers would have bought the game than pirates, had neither had a choice.

    In other words, if you look at 100 pirates and 10 used buyers, and stop the piracy and used market, maybe 5 used buyers would pony up, but only maybe 3 pirates. But I'm just pulling those numbers out of the air - you can't say either way without hard numbers, and they're' not being presented here.

    But I think we've all figured out at this point that a high piracy rate doesn't have to translate into a lot of lost sales. Every time we hear the "industry" cry the pirates are costing them money, they're conveniently counting every pirated copy as a lost sale, which is so far into fantasy land that it crosses clearly into insulting our intelligence.

    --
    I work for the Department of Redundancy Department.
    1. Re:not a good conclusion by Ksevio · · Score: 1

      Another thing it doesn't take into account it that the used copy was once a paid copy. Essentially the cost of buying the game is just being split among more people, freeing more money to buy other titles.

      Now for a company like Lionhead that doesn't really have any other titles, this doesn't help them directly, but for the industry as a whole it means more people are able to buy/play more games.

      With piracy, there is no money (for this title) going back to the developers because duplicates are created for no money.

    2. Re:not a good conclusion by DeadboltX · · Score: 1

      Add in that some pirates are the "try before you buy" variety, or might later purchase the game out of guilt or because a game crack causes problems, or because they need a legit cd key to play multiplayer.

    3. Re:not a good conclusion by Sir+Realist · · Score: 2

      Yep: article interesting, summary faulty.

      The developer is hurt more by used game sales than by pirates OVERALL.
      !=
      The INDIVIDUAL used game buyer hurts the developer more than the INDIVIDUAL pirate.

    4. Re:not a good conclusion by brakarific · · Score: 1

      I agree completely. I used to buy used games, and I still don't buy them right when they are released. To me, the majority of used game buyers fall into two categories: Those who simply can't afford a $50 game, and those who can afford it but are only casual gamers that don't HAVE to have it and can go without if the price isn't right. In either case, eliminating the used game market wouldn't do much to boost sales, as both groups simply wouldn't make the purchase. I guess that leaves only one option left for our beloved game companies, copy the healthcare law and force people to buy games even if they don't want them!

    5. Re:not a good conclusion by crossmr · · Score: 1

      Trying to figure that out is impossible. Even a pirate likely couldn't honestly answer if they would have otherwise bought a game they just pirated.

    6. Re:not a good conclusion by v1 · · Score: 1

      With piracy, there is no money (for this title) going back to the developers because duplicates are created for no money.

      If you're going to use the "splitting up the cost" analogy, you have to extend it to piracy. A title that's sold new once and used twice, is split three ways. So a title that's bought once and pirated 100 times is split 101 ways. OK it's a lot lower return, but it's not zero. Almost always there's at least one original sale source to the pirated copy.

      --
      I work for the Department of Redundancy Department.
    7. Re:not a good conclusion by Ksevio · · Score: 1

      You could extend it to piracy, but it wouldn't be in the same way. With the second hand game, the cost is split, but also the time playing it. There won't be people playing it at the same time. Same way as if I bought a car with someone we could split the cost, but not drive it at the same time.

      There's also no splitting of anything with piracy. One person is spending the money, the others are not contributing anything, No money is going to the developers, not even down a chain of purchases.

    8. Re:not a good conclusion by AmiMoJo · · Score: 1

      I'd say the number of pirates who would otherwise have bought new is less than 1 in 1000, maybe orders of magnitude less than that. There is a huge difference between deciding to pony up £40 for a new game and the couple of clicks it takes to download one. All the pirates I have know downloaded a lot more than they actually played for any length of time, basically trying games out and discarding all but the best. Back in the days of 2x CD burners it took longer to burn the game than to decide it was crap.

      I imagine music and movies are the same. I have borrowed movies from friends but given up watching after 15 minutes, and I would never have taken the chance on buying full price. Similarly just because someone downloads an album doesn't mean they will listen to more than a track or two before discarding it, or maybe they just wanted one track but grabbed the whole torrent anyway so rather than £10 for an album the "loss" is only 50p for one track.

      Media companies need to just accept that not everyone is going to pay full price, and if you kill the second hand market the people who were buying those games won't suddenly start buying new ones instead. Any gain in sales of new products will most likely be more than offset by people renting, borrowing and pirating instead.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    9. Re:not a good conclusion by b4dc0d3r · · Score: 1

      I bought a PS2 after it was out for about 7 years, bought about 30 games used for cheap, and a few $20 "classics". Without the used game market, I would have bought 0 PS2 systems and 0 new games.

      I just got an XBOX 360 and constantly have to clarify - no, I'm looking for the ORIGINAL BioShock, don't want crackdown 2, and I won't be buying Portal 2 until the used price is less than the new price. So far, I bought 3 new games at $20, and several used ones. Again, without the used game market I would not buy a 360.

      Someone was kind enough to buy Portal 2 for me, which would not have happened without the used game system in place.

    10. Re:not a good conclusion by Talennor · · Score: 1

      Remember to subtract the number of people that won't buy Fable 3 for full price if they can't sell it and get half their money back. Fable 1 was a cool game, but not replayable, and not worth $50-60.

      --

      //TODO: signature
    11. Re:not a good conclusion by hitmark · · Score: 1

      Most games i have bought was games i dug out of the shelf clearing bargain bin.

      And i suspect that those that copy the most are those that have the least spending ability, like kids or people on welfare.

      --
      comment first, facts later. http://chem.tufts.edu/AnswersInScience/RelativityofWrong.htm
  12. How is this exclusive to gaming? by GFLPraxis · · Score: 4, Insightful

    Isn't this true of any industry? If I buy a used couch instead of buying it from the manufacturer, don't they take the same "loss"? It's amazing that now used games sales are being considered "loss" in the same manner as piracy.

    1. Re:How is this exclusive to gaming? by TrevorB · · Score: 1

      Couch Piracy means getting bed bugs in your home. Yarr!

    2. Re:How is this exclusive to gaming? by SydShamino · · Score: 2

      The prime assumption is that the person from whom you buy the used couch is making space to buy another new one. Then, you have to decide how many of the new buyers would pay the new product price if they knew there was no resale value.

      For your couch analogy, there'd probably be no change in new product sales. (Who buys a couch for its resale value?) But for good old-fashioned car analogies, I think a lot of people would pay less for a new car if they knew it would be 100% worthless whenever they sold it, either one or two or ten years later. And I think video game buyers have a lot more in common with car buyers than couch buyers. Would most of the people who choose to buy and play new games continue to spend the same amount on new games if they couldn't resell them when finished? Probably not.

      Hence, part of Mike West's argument is probably bull.

      --
      It doesn't hurt to be nice.
    3. Re:How is this exclusive to gaming? by seanalltogether · · Score: 1

      You can't compare the market for physical goods against the market for digital goods, the two have very different investment and production models.

    4. Re:How is this exclusive to gaming? by Dahamma · · Score: 2

      That is true. I guess the problem is that you tend to get a lot more long-term use out of your couch than a video game, and there is no real disadvantage to buying a game used (unlike that pee-stained couch ;)

      Of course, that just seems like an argument for designing more re-playable games or picking a better business model. I don't hear Blizzard complaining much about used sales hurting World of Warcraft (due to the business model) or Starcraft (due to the replayability). And apparently the Rock Band franchise has had hundreds of millions of DLC downloads for their games. Hell, even EA has figured out how to minimize the market for used sports games by releasing a new one with updated features and player rosters every year...

    5. Re:How is this exclusive to gaming? by Pharmboy · · Score: 1

      Because piracy sometimes leads to sales of new games. Sales of used games never leads to sales of new games.

      If only 5% of people who ever pirate games, also buy some of those, that is still more money than the people who buy used games. The games get two owners, the makers get only one profit.

      And as to "new games will be worth less if you can't resell them", I don't really buy that. I would venture most games are never sold once purchased. I have over 100 games that I have bought over the last couple of decades. The floppies I finally pitched. The old games for Win31, 95, etc. I have finally pitched. I buy the game to play it, as do many others, not to virtually "rent" it. If I wanted to rent it, well, I would rent it.

      --
      Tequila: It's not just for breakfast anymore!
    6. Re:How is this exclusive to gaming? by jaymz666 · · Score: 1

      That used couch can quite easily have smells, squashed cushions, and be very different from when it was new. Games are digital and as long as the disk works it will work the same as when new.

    7. Re:How is this exclusive to gaming? by Subacultcha · · Score: 1

      Would most of the people who choose to buy and play new games continue to spend the same amount on new games if they couldn't resell them when finished? Probably not.

      What you're arguing here doesn't necessarily imply that developers would get more sales, because if a person is reselling their games, there's also a good chance they may actually be buying a used game. A used game sale may mean either a trade-in for a new one, an old one, or nothing at all. Logically, then there's fewer new games purchased after a trade-in than there are trade-ins, so trade-ins are not 100% helpful. Really, it's a case where you'd have to do a study to see whether used game sales actually increase sales enough for developers to be profiting from them. I don't think you can make an anecdotal conclusion on that issue. In any case, I think we'll see this issue go away with digital sales and online only games. There's just not much incentive for a game developer to allow used game sales if they can prevent it.

    8. Re:How is this exclusive to gaming? by wisnoskij · · Score: 1

      Sure it is the same, but buying a used game is pretty much identical to pirating that game in that the developers get nothing.
      And why should some retailer make money selling used games and giving none of it back to the original developers? It is a legitimate concern.

      --
      Troll is not a replacement for I disagree.
    9. Re:How is this exclusive to gaming? by steelfood · · Score: 1

      In the same manner? It's considered worse than piracy.

      --
      "If a nation expects to be ignorant and free in a state of civilization, it expects what never was and never will be."
    10. Re:How is this exclusive to gaming? by TheRaven64 · · Score: 1

      It's worse than that. After pirating a game, the person who plays games has the same amount of money. After buying one second hand, they have less. Since they like playing games, there is a chance that they will buy other games. If someone buys one game second hand, this reduces the chance that they'll buy a different game new. If they pirate it, then there is the same probability.

      --
      I am TheRaven on Soylent News
    11. Re:How is this exclusive to gaming? by Darinbob · · Score: 1

      On the other hand, this is at least more confirmation of the well known fact that DRM is not about piracy but is instead about restricting the rights of law abiding customers.

    12. Re:How is this exclusive to gaming? by Darinbob · · Score: 1

      But both do have depreciation values. Most game distributors dislike the idea that their games lose value over time. That's why you see online digital sales lower prices only very slowly over time whereas the same game in a store has the price lowered more quickly.

    13. Re:How is this exclusive to gaming? by misterjymm · · Score: 1

      The key difference is depreciation. If you buy a used couch, you also get all the baggage created with time. Stains, worn fabric, whatever. You buy a used copy of a digital product, regardless of age or use, and you get exactly the same product as if you purchased it new. So where there is a large incentive to buy a new couch and the corresponding new qualities, there is no similar incentive to avoid used video game titles. This is exactly why EA games have been including single use codes for certain launch content, and offering the same content at an inflated price to used buyers. It creates the incentive to purchase new that is already built in to most other industries.

    14. Re:How is this exclusive to gaming? by AmiMoJo · · Score: 1

      Interesting that you would cite EA's strategy because they have found an easy way to kill the second hand market: They simply turn off the multiplayer servers when the new game is out. Online multiplayer is a really important part of modern games so by disabling it in old versions they both reduce re-sale value and "encourage" people who bought new to get the latest edition too.

      Expect to see this more and more now. Games tied to the original console/user that first went on-line with them. Actually IIRC Ubisoft started charging to "re-activate" second hand copies for the new owner to play online. Places like Gamestation that trade in second hand games must love all this.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    15. Re:How is this exclusive to gaming? by vegiVamp · · Score: 1

      I would assume, based on my own personal sample of 1, that a lot of used games sellers will be using the money that comes off their sale towards the purchase of new games, too.

      --
      What a depressingly stupid machine.
    16. Re:How is this exclusive to gaming? by Dahamma · · Score: 1

      Yeah, good point. That's a particularly slimy practice of EA's. Especially since adding console online support in the first place was conditional on using their own servers (Microsoft would have kept these games running for much longer if they hosted them).

    17. Re:How is this exclusive to gaming? by hitmark · · Score: 1

      This likely because a online store have basically infinite shelf space vs a physical store. As such the physical store have to get the boxes off the shelf faster to make room for new games.

      It is basic long tail.

      --
      comment first, facts later. http://chem.tufts.edu/AnswersInScience/RelativityofWrong.htm
    18. Re:How is this exclusive to gaming? by hitmark · · Score: 1

      And this do not take into account all the other goods and services that money can be spent on.

      --
      comment first, facts later. http://chem.tufts.edu/AnswersInScience/RelativityofWrong.htm
  13. Oh good by Haedrian · · Score: 1

    Time to make that illegal then.

    1. Re:Oh good by Darinbob · · Score: 1

      They haven't made it illegal but the publishers have done quite a lot to try and make it impossible by adding DRM.

  14. Pirates weren't going to buy it by batkiwi · · Score: 2

    I can really see this being true. Game piracy does nothing more than get your game's name out there. People are playing it, talking about it, etc. Pretty much no one (statistically) who pirates a game intended on ever purchasing it and thus aren't lost revenue.

    People buying used games intended on purchasing the game, but bought used to save $5. They did nothing wrong, but they were a potential source of revenue for the publisher that is lost.

    I don't know of a good "fix," because I don't support limiting your right to resell, but at the same time the scale that EB/etc do it causes issues.

    In my mind, morally, it's a bit like piracy itself. Me sharing an mp3 rip of an album I've bought with 3-4 friends is not "wrong" in my mind. Were I to rip an album and then sell it on the street for $5 a copy it would be a different story. How you legislate intent and morality, without killing genuine "sharing," is tough.

    1. Re:Pirates weren't going to buy it by batkiwi · · Score: 1

      A possible, non-legislative solution:

      EA/MS/etc should simply refuse to sell "new" in stores which also sell "used." It will take a big name doing it, not a tiny publisher, and it will take doing so publicly.

      People will want halo15/madden 2035/half life episode 69 enough that it won't kill sales (it may dampen them a bit, so that's why you use a blockbuster).

    2. Re:Pirates weren't going to buy it by Manos_Of_Fate · · Score: 1

      The problem with this solution is Gamestop. They make most of their money on used game sales, and have enough retail power that if they didn't carry something it's sales would be badly hurt.

      --
      Isn't enough that I ruined a pony, making a gift for you?
    3. Re:Pirates weren't going to buy it by Chris+Burke · · Score: 1

      People buying used games intended on purchasing the game, but bought used to save $5.

      I think they're doing it to save a bit more than $5.

      If law-abiding folk aren't willing to pay retail for your game, but are willing to pay a much lower cost for a used copy, then this seems to be speaking to an underlying issue. The problem isn't that they're able to buy it used. The problem is that they don't think full retail for your game is worth it. Maybe the problem is that you're charging too much.

      --

      The enemies of Democracy are
    4. Re:Pirates weren't going to buy it by batkiwi · · Score: 1

      Used games, especially for games under 6 months old, are rarely discounted more than $5.

      Buying a game at $10, but not at $50 I can understand.

      But if you bought a game for $47 instead of $52, you were going to buy the game either way, it's just "why not save $5" when both are staring you in the face.

    5. Re:Pirates weren't going to buy it by Chris+Burke · · Score: 1

      That must be a "feature" of the EB-style stores which I avoid. When I buy used, it's at a store that sells used and that's it.

      But in that case my next question is: Why are there so many used copies of the game available so quickly that it can have a significant impact on full-price retail sales?

      --

      The enemies of Democracy are
    6. Re:Pirates weren't going to buy it by Darinbob · · Score: 1

      I always thought Gamestop was a scam. When I used to get used games I would get them for half price or even lower. Selling a used game for nearly full price is just sleazy.

    7. Re:Pirates weren't going to buy it by Jibekn · · Score: 1

      If 5$ was enough for them to wait on buying the game, the game wasn't worth 49.99.. or usually 39.99 for that matter. Make your games better, and stop churning out regurgitated graphics, engines and ideas. Or at least price the stuff accordingly.

    8. Re:Pirates weren't going to buy it by schnell · · Score: 1

      If law-abiding folk aren't willing to pay retail for your game, but are willing to pay a much lower cost for a used copy, then this seems to be speaking to an underlying issue ... Maybe the problem is that you're charging too much.

      Absolutely not! In Economics 101, this is called price discrimination. It sounds like a bad thing (like racism or something) but it's not.

      In essence it means that you as a seller of goods want to maximize your sale price and make the most money from it. Originally this was accomplished when all goods were bartered for (you as a seller negotiated the highest price you can get from any given buyer). But over the last couple hundred years marketplaces emerged for fixed prices. This appealed to many consumers but robbed sellers of their ability to exercise price discrimination.

      I will skip the long economic story, but this is the whole reason that the modern phenomenon of "sale prices" exist. Let's say you have some widgets that you can make a tiny profit on by selling for $5 each. But you know a sizeable number of people think it's worth buying for $20 each. So what do you do? As a rational economic actor, you price it at $20 and then after some period of time you have a "sale" of Widget X for $5. You have extracted $20 from the people who think it's worth $20, and you have also extracted the money from the people who think it's only worth $5 and wouldn't have paid $20. Those $5 buyers didn't get it immediately, but they bought it from you when they felt the price was what they were willing to pay. Maybe there are other buyers willing to pay $1 for it, but it's up to you as the seller to figure out if that group of buyers is worthwhile to you and if you can make money selling it at that price.

      This is how most markets for almost all goods work. The fundamental principle of capitalism is that a thing is worth whatever someone is willing to pay for it. So it doesn't mean that you're charging too much for Widget X if one person doesn't think it's worth it; it is just an opportunity for you to exercise price discrimination until you have found the right market levels.

      Of course the whole point of this story is that both piracy and used game sales rob developers of the power of price discrimination (at least in such a way that they get any of the sale price). And this developer seems to say that the used game sales hurt more because those are actually people willing to pay for something, unlike the majority of pirates who - let's not kid ourselves - just want to get stuff for free, regardless of the ethics thereof, and would never have bought anything.

      --
      "95% of all Slashdot .sig quotes are incorrect or completely fabricated." -Benjamin Franklin
  15. Blame for everyone. by Kaenneth · · Score: 1

    Make sense, as those who pirate usually wouldn't be paying in any case, while those who buy used actually have some cash.

    But it's also a problem with shorter games without replay value, I'd never sell X-Com, Fallout 1/2, etc. because they can be played again and again, while many games are just 'unlock the next cutscene' with a static plot and outcome.

  16. DRM by M0j0_j0j0 · · Score: 1

    And that Sir, is exactly what DRM was thought for.

    1. Re:DRM by 0123456 · · Score: 1

      And that Sir, is exactly what DRM was thought for.

      The funny part is that I would probably have bought Fable III if it wasn't for the DRM, because it seems like it would be worth a try despite the numerous problems. But becasue of they put extra DRM on top of the Steam DRM I spent the money on a DRM-free copy of Witcher 2 instead.

  17. i dont believe it..... by metalmaster · · Score: 1

    atleast not from a developer whose job is to design and write the game mechanics; not count the money.

    I dont know any devs personally, but i'd expect them to be on the payroll/contract for a game. That sort of stuff should be built into the budget for a game. They get paid if the game sells 100,000 copies or the game breaks record sales.

  18. these kinds of arguments are very entertaining by Dan667 · · Score: 1

    this guy from lionhead is trying to convince his bosses that their game did not sell because it was terrible, it is because of some boogieman out there they have little control of.

  19. "License" by KingSkippus · · Score: 5, Interesting

    The problem is that when you plunk out your money to buy the shiny new, it is not a sale. Legally, you're buying a "license" to use the game, which gives game companies the ability to dictate and/or change the terms of those license at their will.

    It's not really SCOTUS that needs to address it, it's Congress. We need a law that basically says, "If it looks like a sale, acts like a sale, works like a sale, then it's a sale." Software shouldn't be able to be licensed except in very specific circumstances, none of which apply to individual end users purchasing entertainment software.

    If SCOTUS did take up the issue, they need to basically rule most EULAs unconscionable.

    At any rate, I doubt any of that will happen any time soon. People are too addicted to that hot new Xbox/PS3/PC game to worry about little details like consumer rights.

    1. Re:"License" by gman003 · · Score: 3, Informative

      The judiciary actually does has enough power in the US to do this. In fact, several courts have ruled EULAs invalid (see in particular SoftMan v. Adobe, which ruled that software is sold, not licensed, although it did uphold license restrictions as valid).

    2. Re:"License" by Anonymous Coward · · Score: 1

      Legally, you're buying a "license"

      This doesn't hold up in court for many software products, including most games, as company's advertisement's, and selling techniques, generally imply the game is for sale. This creates an implied warranty that is trivial to pursue in court (even if implied warranties are expressly denied).

      "If it looks like a sale, acts like a sale, works like a sale, then it's a sale."

      That's a good definition of this facet of implied warranty. We just need more people to apply it when they can. I've used it to successfully ask for multiple refunds (directly from the manufacture) when I've been hit with unexpected DRM.

      This won't last forever though. Companies will be more upfront about licensing and consumers will become more aware of it. Both of these will make the implied warranty harder to apply. So, if you see a chance to use this legal strategy please help consumers push back, or at least let others know it's possible.

    3. Re:"License" by SoftwareArtist · · Score: 5, Insightful

      The problem is that when you plunk out your money to buy the shiny new, it is not a sale. Legally, you're buying a "license" to use the game, which gives game companies the ability to dictate and/or change the terms of those license at their will.

      Let me tell you a story. This story didn't actually happen in the real world. It only took place in a fantasy world that software companies wished they lived in.

      I went into a store that sells software. (Pick your favorite - GameStop, Target, Office Depot, whatever.) They had lots of boxed software on the shelves. I selected the one I wanted, took it up to the register, and said, "I'd like to buy this." The cashier replied, "I'm sorry but that isn't for sale. If you'd like to license it, though, please read this agreement and sign here."

      Like I said, that didn't really happen. Here's what actually happened.

      I told the cashier, "I'd like to buy this," and they replied, "That will be $30." So I handed over my credit card, they scanned it, and I signed the receipt. Then they handed me the software back and said, "Here you are."

      At this point, the sale was complete. The purchase agreement was concluded. So I took the boxed software (which I now owned, since it had legally been sold to me) home and opened it up. Inside was a piece of paper covered with tiny writing that I did not bother to read, since it obviously contained no information of value. But if I had read it, I would have discovered it to be mostly incomprehensible legalese. If I had then taken it to a lawyer, they could have translated it for me as follows: "You know that software you just bought? You didn't really buy it. You actually just licensed it, and if you want to use it, you have to agree to all these other terms we didn't tell you about before you bought it and before we took your money."

      The only reasonable response, of course, is "@#$% you! I do not agree to any of your terms. Nonetheless, I will continue to use this software, because it belongs to me and I have every right to use it." A purchase it a contract. Once that contract is complete - once they have taken my money and given me the software - it's too late for them to rewrite the agreement and add in new terms.

      --
      "I'm too busy to research this and form an educated opinion, but I do have time to tell everyone my uninformed opinion."
    4. Re:"License" by Darinbob · · Score: 1

      I disagree here. This can fall into the jurisdiction of the courts. I am not buying a license when I go into a store and purchase a game, and I am not signing a contract. There is nothing on the box that says I must sign an agreement. Only when I get home do I discover a pop up notice with some ridiculous terms which in no possible way resemble a contract. But at that point even if I decide that there's some dubious validity to a shrink wrap "agreement" I am unable to return the game for a refund at the store I purchased it from. The game is open, the box has a "key" inside it, and the store will rightly refuse to take it back for fear that I pirated it.

    5. Re:"License" by Darinbob · · Score: 1

      What screws this all up and makes this different from buying a physical book, is that the process of using the game requires you to make an ephemeral copy of the game in order to play it (ie, it has to be installed on hard disk or at very least it has to be loaded into RAM). That's the loophole that allows companies to try and claim that you're making copy and therefore they have full control of telling you when and where and how you can copy it.

      I could certainly see a "fair use" exemption here, where it's considered fair use to temporarily load a program into memory in order to run it if you purchased the media that it is on. Imagine if book publishers make us sign licenses for books based on the concept that the copyrighted pages are being copied onto our retinas.

    6. Re:"License" by KeithIrwin · · Score: 3, Insightful

      You don't need a "fair use" exception. The needed exception is already written into copyright law in most countries. In the US, it's 17 USC 117 (a) (1) .

      (a) Making of Additional Copy or Adaptation by Owner of Copy.— Notwithstanding the provisions of section 106, it is not an infringement for the owner of a copy of a computer program to make or authorize the making of another copy or adaptation of that computer program provided:
      (1) that such a new copy or adaptation is created as an essential step in the utilization of the computer program in conjunction with a machine and that it is used in no other manner, or
      (2) that such new copy or adaptation is for archival purposes only and that all archival copies are destroyed in the event that continued possession of the computer program should cease to be rightful.

      That copy onto the hard drive and then the copying into RAM, each is definitely "an essential step in the utilization of the computer program in conjunction with a machine". As such, these are legal copies if you own a legal copy of the software (like if, for example, you walked into a store and bought one). The law is solid in this case.

      The bit I don't understand is why a court would ever rule an EULA to be an enforceable contract given that the majority of them grant one party (the licensee) absolutely no rights which they don't already have. Why would the court ever support such a one-sided contract as being enforceable?

    7. Re:"License" by Howitzer86 · · Score: 1

      That's nice, but a lot of software is purchased online these days. Some packages are online-only. Most of the more reputable vendors present the license before you buy it, and some of them even decifer those difficult to understand licenses with FAQs.

      That would be OK in of itself. But another trend is to limit the computers you can install their software on. After all, you just licensed it, if they say you can only install it on one computer, then you can only install it on one computer. Period. If you format or buy a new computer, you have to ask them nicely to disable the license on your old computer.

      I bought Unity, and this is a constant irritant for me. I use many computers through out the day, and yet I have to make do with the licenses on my home desktop, and my laptop. I bought Unity - yet I don't have control over it. It's almost like I rented the thing.

    8. Re:"License" by choko · · Score: 1

      It's less about the people and more about Congress being owned by corporations. They would never do anything to upset their overlords, less they risk not getting enough "donations" to win the next election. This is the same reason the T-Mobile sale will go through. Even though it's not good for the consumer, AT&T has donated ALOT of money over the past few years. I'm sure someone will scratch their backs.

    9. Re:"License" by Anonymous Coward · · Score: 1

      In the UK there are old old pieces of case law about terms after the fact - can't remember the case names but one involved a guy buying a tram ticket and his coat getting damaged - the ticket said on the back "not liable for damage to clothing" but he could not have seen that until after the contract was completed. The other was to do with a sign on the back of a hotel room door but the contract was sealed when registration took place at reception.

      As they are the standard bits of case law taught in uni contract law courses (for non legal students) I would think that they indicate EULA's are unenforceable in the UK

    10. Re:"License" by drb226 · · Score: 1

      And heaven forbid you dare memorize any part of a book. Then you could produce partial oral copies at will! The chaos!!!

  20. Well by LWATCDR · · Score: 1

    Sell the games too cheap to make used a good deal. Or make games that people never want to sell.
    Really it is just too bad.

    --
    See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
  21. Call me crazy... but... by cadeon · · Score: 2

    Wouldn't more reasonable prices for new games take the wind out of the huge second-hand games business?

    1. Re:Call me crazy... but... by BlueStrat · · Score: 1

      Call me crazy... but...

      Wouldn't more reasonable prices for new games take the wind out of the huge second-hand games business?

      You're crazy.

      We set the price. You pay it.

      Failure to comply in any way (including just not buying, even if you don't pirate or buy used) makes you a criminal, and we've purchased or are purchasing the laws to prove it.

      Anything not mandatory is verboten!

      ~Gaming Industry

      --
      Progressivism (aka US 'Liberalism'): Ideas so good they need a police/surveillance-state to enforce.
  22. But if you take away used games... by Itesh · · Score: 1

    how many more people suddenly become interested in pirating?

  23. Shut the fuck up - learn to buck up - Cake by bmo · · Score: 1

    This is nothing more than rent-seeking.

    Hey Lionhead: Provide more content that people are willing to shell out money for. Either that or close up shop and get the hell out of the market, because obviously you are a bunch of idiots.

    Somehow the creators of content just want to create once and never work again. Sorry, but this is not how life works in the real world. Continued rent-seeking will make people avoid your new products, and with good reason.

    What a bunch of whiny cunts.

    --
    BMO

  24. Agreed. by Runefox · · Score: 1

    It IS bad for developers because retailers like Gamestop and EB will put used copies on the shelf immediately on launch whenever they get them in, and for a few bucks less. They get a 100% profit, with none of the proceeds going to the developer (which is fine, but it's important to remember that you're not their customer by buying a used copy of a game). It cannibalizes initial sales during the most important time of a game's release, especially when you consider that frequent used game buyers will opt into things like Gamestop/EB's Edge card system, getting an additional 10% off the sticker price.

    If the motion picture industry let retailers rent/sell copies of movies at the same time as theatrical release, then the financial bottom would be eaten out from under the theatrical aspect of the industry, which is usually the most important and most profitable portion of a film's release. This is the reason why the motion picture industry delays home video releases of new films, and this is what should be done with games, too.

    I've heard arguments against that, people saying "Oh, well, I should be able to sell it if I want to", and that's fine, really; What needs to be regulated is not people selling games back or trading them in, but the amount of time needed before used copies start showing up on retail shelves alongside new copies. The only problem is, retailers are unlikely to agree to something like that unless forced to, since they can sell a $70 game for $65 for 100% profit. Waiting until later gains them less. Which is sort of why the game industry almost needs a standards board for this kind of thing... Something, though I shudder to say it, like the RIAA/MPAA (because, besides suing people for downloading media, that's part of what they do).

    --
    Screw the rules, I have green hair!
    1. Re:Agreed. by WoollyMittens · · Score: 1

      Your comparison to video releases is flawed, since selling second hand DVDs is not regulated either.

    2. Re:Agreed. by Runefox · · Score: 1

      No, but that argument is also flawed; DVD (or Blu-ray, I'll refer to both as DVD for random, arbitrary reasons) sales aren't the sole revenue generator for a film that had a theatrical release, and you seldom see used DVD's on the same shelves as new ones, to boot. In fact, most retailers that DO sell DVD's don't bother stocking used DVD's.

      --
      Screw the rules, I have green hair!
    3. Re:Agreed. by Bert64 · · Score: 3, Insightful

      A used copy can only exist if someone has already bought a new copy and then chosen to sell it on. The supply of such copies very shortly after a new game is released is likely to have a very close relationship to how poor and overhyped that game is...
      Very few people are going to buy a game for $70 by choice and then sell it for a fraction of the price a day later. If someone does that, then they were effectively tricked into making that purchase in the first place.
      If anything, the purchaser should have a window in which they can return the game for a full refund, especially if they bought something which didn't live up to its advertising.

      Retailers should be able to resell used copies of games as soon as they have used copies to sell, to place an arbitrary delay hurts end users and hurts retailers.

      --
      http://spamdecoy.net - free throwaway anonymous email - avoid spam!
    4. Re:Agreed. by Anonymous Coward · · Score: 1

      GameStopand others are not making anywhere near 100% profit. They are paying people to buy their used games from them and taking on the risk of reselling them.

    5. Re:Agreed. by Runefox · · Score: 1

      Per-sale of used game, it is pure profit. I never said there wasn't any risk in taking on the inventory, but then again, most games they take in will go for about $5-10 or so worth of store credit, ensuring that no raw currency leaves the door one way or another.

      --
      Screw the rules, I have green hair!
    6. Re:Agreed. by Runefox · · Score: 4, Interesting

      True, but EB/Gamestop have huge incentives to bring new games back for trade value. When The Godfather was released, there actually was a promotion that if you could beat the game within a certain period of time (I think it was either a few days or a week), you'd trade it back in and it was 'free'. Nowadays, they have their "Most Wanted" lists, with new releases fetching the biggest bounties, and new releases tend to have a "trade 3 and it's free" promotion as well. In other words, EB/Gamestop have put HUGE amounts of effort into making people part with new releases in order to get other games, in a rather turnstile fashion. If you've ever been into an EB or Gamestop, you'll probably notice that there actually are a surprising number of new releases with used stickers on.

      It's true that on day 0, there shouldn't be many used copies, but I have witnessed it, in particular with Halo 3. Within less than a week's time, used copies lined the shelves for $5 less than new.

      I don't believe that it's fair for a product to have to compete with itself on the same shelves that it's on. Recently used copies are very likely to not have any damage or defects, and EB/Gamestop warrant them as working for a certain period of time, anyway, so there isn't any incentive to pay the extra to buy a full retail copy. This is part of the reason why multiplayer is becoming such a huge cornerstone of game development - Multiplayer communities generally mean that people who play online will continue to do so, rather than trading the game in. It's also why EA and others have been bundling one-use DLC with their games, and why it could very well be possible that in order to combat both piracy and used game sales, one-use (or limited-use) serial keys for console games might be in our future. With that in mind, it would be a LOT better to come to an agreement with publishers over street dates rather than having the bottom taken out from under the entire used game industry in the name of anti-piracy (which is exactly how it would be spun).

      --
      Screw the rules, I have green hair!
    7. Re:Agreed. by Runefox · · Score: 1

      I should note that with the Halo 3 example, I was offered a used copy of the game on launch day when I was going to pick it up.

      --
      Screw the rules, I have green hair!
    8. Re:Agreed. by Runefox · · Score: 1

      Operating costs are irrelevant; They exist for any other transaction in the business. As for buying the used game back, they don't do that with real currency, just store credit.

      --
      Screw the rules, I have green hair!
    9. Re:Agreed. by Bert64 · · Score: 1

      Many of the people who buy games and then trade them in a couple of days later probably wouldn't have bought them at all were it not for the trade in ability (which significantly reduces the risk of making the initial purchase)... So then the person who would have bought the used copy, may instead buy a new copy, but that's still only one new copy sold at best.

      Why shouldn't a game have to compete with itself? Publishers want to spew out absolute crap and rely on people buying it, and some people are more willing to take a risk on such things if they know they can get 90% of their money back by trading it in... If you take away that safety net, people will become far more careful about what new games they buy...
      And the fact that so many people want to get rid of a game they bought only a few days ago says a lot about those games...

      I'm all for developers making games which people actually want to continue playing, but i'm completely against them doing anything damaging to consumers in order to kill the used market.

      --
      http://spamdecoy.net - free throwaway anonymous email - avoid spam!
  25. Make it Epic. by VortexCortex · · Score: 3

    Epic, as in Epic Megagames (sorry, forgot they dropped the mega).

    Just got 1 copy of Bullet Storm. We have 2 XBoxes. Only one player at a time can load the game in their personal Xbox. However, to access any of the online play features the second player has to purchase a $10 "online pass". Hint: XBL is largely a peer to peer network, hence "Selecting New Host" -- We're not playing on their dedicated servers, only the player's own XBoxes and the MS sponsored matchmaking is needed -- both I've already pay for twice (once for each player in the house). Granted, some in-game stats & ranking may be an excuse to run a separate server and charge for hosting -- but an additional mandatory $10 just to play online? Inexcusable (note: MS servers store the achievements).

    From MS Game Studio Docs:

    Any matchmaking scenario involves the creation of a network session. Network sessions give XNA Framework games access to profile data on all the gamers in a potential game.

    Perhaps they don't use XNA, and roll their own instead -- whos fault is that?

    Seems like a non-issue to me as long as this type of XBL lock-out extortion racket is allowed (Even moreso a non issue for me since I've added Epic Games to the list of abusive companies I boycott).

  26. Re:cry me a river by Dahamma · · Score: 1

    Wha? If anything, the first Fable game went on too long for me; I didn't buy the sequels because I just couldn't invest the time to get everything out of them.

    Then again, when I play RPG adventure-type games like that I tend to try to explore every feature/plotline/mission, rather than finish it as fast as possible and move on. That's why I'm still playing Fallout 3 on and off after 2 years :)

  27. This just in... by squidflakes · · Score: 1

    Game developers and marketing executives have determined that playing games is bad for the gaming industry.

    "We're not like any other industry." said developer Nertlebaum Q. Tinkerbottom, lead designer at Poopsock Games "If we produce an inferior product, we still expected to get paid as if we had made a best-seller. Honestly, if gamers would just buy our games, and never play them, the industry would be in a much better position."

    Fookyu Baka, chairman of Nintendo's Games Marketing division echoed the sentiment, saying "In perfect world, Nintendo would produce new systems every four quarters, and utilize already developed properties to generate sales. Our development efforts could have ceased in the mid-80s and we would realize continuing returns on, at most, six properties."

  28. UH huh by MobileTatsu-NJG · · Score: 1

    "Unless you sit down and meet a pirate face to face and have a conversation about what it does, I don't think anything will stop them."

    ... so we'll make the legit version of the game harder to pirate because we all know that annoying customers makes them spend more money!

    --

    "I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)

  29. Maybe Charge Less? Or make better games? by Cloudgatherer · · Score: 1

    To put it yet another way, why buy "new" games? Especially console games.

    Brand new games cost roughly $60 here in the US. If you are looking to buy used, a store like GameStop will often re-sell a used copy for just under whatever the new price is, thus a customer can potentially save 5-10 dollars on the used version vs the new version. GameStop (last I checked) also has a decent return policy on their used games, it can be returned up to a week after purchase for a full refund.

    First scenario, a friend of mine will simply buy the game used, play it, beat it, and if he really enjoys it he keeps it. If not, he returns it for a full refund. Awesome. I'm sure that loophole will be closed at some point, but whatever.

    Second scenario, is that games always get cheaper over time. I rarely play console games, but a game came out last year I had my eye on. It wasn't a great game, and the reviews clearly pointed out that it wasn't worth the $60 price tag. I agreed, and waited the price down to $30, and I actually wanted to own the game (hence I didn't go with scenario one).

    In other words, people are flocking to used games because the time/fun to money ratio just isn't working for most people. $60 per game gets expensive, especially with some of the games being of poor quality/time versus other options. I have no problem paying more for a truly in-depth game, but these days many games are "copy-paste" jobs that end up being sequels or knock-offs of other games trying to charge full price when it really isn't worth it. You would think by the third time a company is about to release, effectively, the same game for the third time they would figure that out.

  30. Thankfully same answer for both.. by Junta · · Score: 1

    If a game costs 10 bucks new, not much of a secondary market. At least none that a Gamestop like company would have enough wiggle room to bother with. There might be a craigslist here and there, but no business in trade-in games. If you planned at doing $50 at your volume moves up by five-fold, revenue wise it's a wash, your game is more popular, and given the margins in software distribution your profit is probably the same too.

    Similarly, the relative hassle/risk of pirating a game isn't appealing if you can just get legally licensed for a trivial sum.

    --
    XML is like violence. If it doesn't solve the problem, use more.
  31. Re:Digital only will be the rule within 2 gens. by somersault · · Score: 1

    Dear gods, not the TAILORED ADVERTISEMENTS! Say it ain't so! :(

    --
    which is totally what she said
  32. Re:Summary's Interpretation is Bizarre by 0123456 · · Score: 2

    The point was that stopping by a second-hand store to pick up a licensed physical copy of the game gets a developer zero revenue, as opposed to stopping by a first-hand retailer to pick up a licensed physical copy of the game.

    But there's absolutely no reason to believe that someone who can't sell the game second-hand would still buy it at full price or that someone who buys games second-hand would buy them at full price if buying second-hand wasn't an option. Quite likely both people would wait until it hit the bargain bin and get it for $5.

    So the claim is probably as retarded as it first appears.

  33. Bad logic in many posters by subanark · · Score: 1

    2nd hard market hurts more than piracy, not because they think more people buy used than pirate, but rather the willingness to pay for the full retail value is higher among people who buy used, vs those who pirate.

    The future is DLC, it lets people pay how much they are willing for the game. We will probably see most non-MMO games go to free to play (with possibly ads) with the micro transactions there to those that are willing to pay.

    I'm also willing to bet we will soon see DLC for TV as well in the form of bonus scenes.

  34. Re:Digital only will be the rule within 2 gens. by TheEyes · · Score: 1

    As much as I hate to say it, physical media is largely dead. Digital only, with all titles being tied to your personal information, thus letting corporations tailor advertisements to you, is going to be standard very shortly.

    I think the next gen will still be physical, but after that it is very unlikely.

    Maybe in Japan, South Korea and Lithuania where you can get a decent internet connection for a reasonable price. Here in America, with ever-increasing last-mile prices and ever-tightening bandwidth caps (despite backhaul becoming exponentially cheaper year-over-year), in two console generations most people won't even be able to afford to play a game online, let alone download one.

  35. it isn't a loss to the economy by sgt+scrub · · Score: 1

    if a game is pirated no money exchanges hands. if a game is passed down no money exchanges hand. if the game is sold then resold, ad nauseam, then it is still a viable asset in the economy. the same goes for books. the only reason games are looked at differently than books is because the industry had created this bullshit belief that their content is somehow more holy.

    --
    Having to work for a living is the root of all evil.
  36. God-damn money-grubbing assholes. by NeutronCowboy · · Score: 5, Interesting

    Yeah. I said it. Fuck off. Let me repeat something I've said multiple times already: You are not entitled to my money. You sold it once, you got paid what you asked for; now shut the fuck up. Think that copy is worth more? Then ask for more when you sell it. Think you're not getting your fair share? Who the hell are you to determine what your fair share is? This isn't a free market that you're after, that's nothing but "Give me money because I said so" highway robbery.

    At least the cat's out of the bag now. The problem that creative types (music, film, software) have with piracy has actually nothing to do with whether something illegal is taking place around the fruit of their sweat and blood. It has everything to do with them feeling that they're not making as much money as they think they could. It's a pure money-grab, nothing else. The only difference between the people who complain that the second-hand market is ruining them and basic robbery is that the first group hires government agents to do their bidding. The second group has at least the decency to do their own dirty work.

    To that, I say Fuck You. Don't like it? Fuck you, with a chainsaw.

    Peter Molyneux, I have great respect for you. You created Populous, which by itself gives you a near eternal free pass to be a dick. But any interest I have in Fable III will now be satisfied by buying it second hand. I might even write you an email, showing you my original copy, the second hand sticker on it, and a big middle-finger across it. Yeah, I know, you didn't offer up these sentiments. That was one of your underlings. Then get your underlings under control. The same goes for every other entitled asshole who feels that just because they made something pretty, they deserve to be paid in perpetuity anytime someone looks at their work, or creates something that vaguely resembles it.

    And just in case anyone missed my point: Fuck you. I'm going to the flea-market.

    --
    Those who can, do. Those who can't, sue.
    1. Re:God-damn money-grubbing assholes. by xMrFishx · · Score: 1

      Dude, you just made me feel the emptiness that is the lack of Populous in my life now...damn you!

    2. Re:God-damn money-grubbing assholes. by magamiako1 · · Score: 1

      I totally agree with you. Btw, flea markets rule--the only places left in America where bartering and haggling are still very valid.

    3. Re:God-damn money-grubbing assholes. by rjejr · · Score: 1

      WTF is your problem? The guy states an opinion that he feels is fat - second hand sales cost his compnay more than piracy - and you go off on some self-righteous rant that has almost nothing to do with the article? I've RTFA and nowhere is it insulting to gamers or anyone else. It's very straight forward and matter of fact. It never states second hand sales should be band or are illegal or are the work of the devil, it simply states the company loses more sales to customers of used games than it loses to pirates, which is probably true, as pirates wouldn't buy the game anyway, so no lost sale, but used gamers would have bought the game new without the used option, hence costing the company money. I have no idea why any sane person wold react the way you did. .

    4. Re:God-damn money-grubbing assholes. by NeutronCowboy · · Score: 1

      it simply states the company loses more sales to customers of used games than it loses to pirates

      If you don't understand what's wrong with this statement, you will never understand what danger lies ahead for ever being able to own anything that is covered by copyright.

      but used gamers would have bought the game new without the used option, hence costing the company money

      If you don't understand what's wrong with this statement (hint: there are two things wrong with it), you will never understand exactly how much control corporations are asking for.

      It's also quite possible that you're too young to have followed Napster very closely, and how its end started. In which case - be quiet, adults are talking.

      --
      Those who can, do. Those who can't, sue.
    5. Re:God-damn money-grubbing assholes. by whoop · · Score: 1

      It will be very interesting to see what happens when Redbox goes national with renting games next month. One game dev (Cliffy B, I think) said it was the end of sub 10-hour single player games. People would just spend $2 renting it from Redbox than paying $60 for it.

      For myself, the multiplayer aspect of most modern games doesn't interest me. I don't have natural skill in these FPSes on Xbox. I do alright, but I'm not going to spend 100 hours to get to the point of having better perks, enhancements, etc. So, renting for a few days at that price does sound promising, at least in the short-term.

    6. Re:God-damn money-grubbing assholes. by whoop · · Score: 1

      Yes, I don't think devs understand that every game doesn't have $60 worth of gameplay in them to everybody. Sure, your fanboys who love the games and their stories will be there on launch day. But some of us have less interest in getting 100% everything in a game. I enjoy Mass Effect 2 from what I have played. But no, I'm not going to do every possible side-quest. I'll play through to the end once, twice tops if I really, really like a game. And then it's time to move on, sell it on Ebay, trade it with people on Craigslist, etc.

      They need to scale the price of games as time goes on. For the first 3-6 months, it's $60. Then the next 3-6 months, it's $40. Then as a year comes up, release it as a "game of the year" edition with the DLC for that same $40. By the time a sequel is due, $20. By that time, the person hasn't cared about the game enough to buy it, so the $20 is just advertising to get them to buy the next release. You might just get a few new fanboys, who knows. The most popular games can stretch that timeline out, the lesser games will have to move it up.

    7. Re:God-damn money-grubbing assholes. by Totenglocke · · Score: 1

      but used gamers would have bought the game new without the used option, hence costing the company money.

      No. Some might have. Most wouldn't because most people who buy used games can't AFFORD to buy new games (hence why they buy used). If they raised the cost of used games or eliminated them all together, many people would stop playing games and the rest would just get fewer games. Hell, I know some people who buy a new game, beat it, then trade it in at gamestop and get another game used with that money - or else they sell off games that they have beaten to finance buying new copies of a game that just came out. If they didn't have a market to sell their games that they beat, they wouldn't buy nearly as many new games.

      It's sad that you think that they have a right to however much money they decide that you "owe" them just for existing.....

      --
      "The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." ~Thomas Jefferson
    8. Re:God-damn money-grubbing assholes. by Rogerborg · · Score: 2

      second hand sales cost his compnay[sic] more than piracy

      I think I deserve $50 from everyone who reads this post. If you just read it for nothing, you've cost me $50. You thief.

      --
      If you were blocking sigs, you wouldn't have to read this.
    9. Re:God-damn money-grubbing assholes. by Kakari · · Score: 1

      I seem to remember a time when this happened - I think it was back around the time Half Life (1) came out. Actually, the entire timeline of the Half Life series seems to go the way you suggest (right up to the Orange Box).

      I find DVDs tend to move this way as well - any movie that's 24+ months old seems to be <$10 and often <$7.

      Granted, I haven't bought a game in close to 2.5 years, so things might have changed quite a bit.

  37. Gamestop Preorder by dadelbunts · · Score: 1

    Why do these companies complain about used games and then offer pre-order bonuses from GAMESTOP. Basically the only company that sells used games on a mass market.

    1. Re:Gamestop Preorder by mibalzonya · · Score: 1

      I hadn't thought of that.

  38. Conclusion is misleading by Dalzhim · · Score: 1

    The conclusion seems misleading.

    Misleading conclusion:
    Buying a used game doesn't hurt more than pirating the game.

    More accurate conclusion:
    Companies lose more money to used game sales than to piracy.

    1. Re:Conclusion is misleading by oursland · · Score: 1

      I don't think that's entirely accurate either. The companies can't lose what they don't have. This is them marketing the idea that the second-hand market should be eliminated.

    2. Re:Conclusion is misleading by Dalzhim · · Score: 1

      You are right.
      Maybe we could rephrase it that way then?

      The amount of used game sales has become larger than the amount of pirated copies.

    3. Re:Conclusion is misleading by Dalzhim · · Score: 1

      Meh, I already see more inaccuracy in what I just said.
      Here's one more try:

      The potential for increasing profits is higher by eliminating used game sales as opposed to eliminating piracy according to a Fable III Dev.

  39. Re:censoring, deceiving holycost cannot erase trut by C0R1D4N · · Score: 1

    Why did I ever reduce my threshold...

  40. Re:Summary's Interpretation is Bizarre by Bert64 · · Score: 1

    Once the initial development costs are covered, selling a game for $5 is still a $4.99 profit for them...

    --
    http://spamdecoy.net - free throwaway anonymous email - avoid spam!
  41. Wrong by LordLucless · · Score: 1

    This developer is wrong. Second hand sales cost them nothing. Not making a sale to someone isn't a monetary loss. This sense of entitlement from copyright holders - that somehow it is their moral right to get paid, not on the basis of units shipped, but whenever anybody looks at their creation - needs to get stepped on, hard.

    --
    Just because you're paranoid doesn't mean there isn't an invisible demon about to eat your face
    1. Re:Wrong by pommiekiwifruit · · Score: 1

      Of course it is a lost sale if the customer wanted to give money to the developer and the shop persuades them not to. I'm a hoarder so I don't get rid of games. If I go into a games shop more than a week after a game is released I am lucky if I am permitted by the retailer to give any money to the developers of the game by buying a new one (since they want to get rid of their used games first). Heck they take *preorders for used games* these days. No wonder EA has responded to this declaration of war by retailers by putting content for single player games online. So the consumer ends up losing. I don't see second hand books/music/dvds being pushed over new ones at the major retailers - why is that? If there was a delay between new and used sales at the major retailers like there used to be, publishers and developers might feel less squeezed.

    2. Re:Wrong by LordLucless · · Score: 1

      It might be a "lost sale", or a "lost opportunity", but it's not a loss. If you never got the money, you never lost the money. It's like the movie industry claiming massive losses because all the money people might have spent on movies was instead spent on video games. Or Holden complaining that every sale made by Ford is "costing them money", because if people weren't buying Fords they'd be buying Holdens instead.

      Otherwise I'd be listing 6.5 billion lost sales on my tax return, to represent the losses caused by the population of earth not purchasing my software.

      --
      Just because you're paranoid doesn't mean there isn't an invisible demon about to eat your face
  42. Steam vs. Retail by ink · · Score: 1

    Developers complain about pirating on the PC, so they make console-only titles, then they complain about used game sales. I would have purchased Red Dead Redemption on Steam, had it been available -- instead I bought a used copy at GameStop for $20. Sorry Rockstar. Eventually all games will be delivered digitally, and the producers will need to have a more sane stance on pricing. Not every game is worth $60.

    --
    The wheel is turning, but the hamster is dead.
    1. Re:Steam vs. Retail by JSBiff · · Score: 5, Insightful

      Funny you should bring up Steam in this discussion, since Steam is a blatant attempt, at least in part, to forever destroy the secondary game sales market. You can't transfer games from one account to another, and if you try to sell the account, and Valve catches you, they just ban the account forever and NO ONE ever plays those copies of the game again.

      There was a story awhile back about Valve catching someone, and banning their account, which had something like $2000 worth of games on it.Flush. Watch it swirl down the drain.

    2. Re:Steam vs. Retail by ink · · Score: 2

      You're talking about this story: http://arstechnica.com/gaming/news/2011/03/steam-user-violates-subscriber-agreement-loses-1800-in-games.ars

      In which case Valve refunded the account. Regardless, this is the future whether you like it or not. You won't be buying physical media in the very near future. The 360 and PS3 may well be the last consoles to even have removable storage of any kind -- if not, the next generation will be the last.

      --
      The wheel is turning, but the hamster is dead.
    3. Re:Steam vs. Retail by Darinbob · · Score: 1

      Agreed, Steam is DRM and therefore it should be treated as an evil monstrosity just like all other DRM. Fanboys who say "no no, this is a benevolent monarchy, it's completely different!" are missing the point.

  43. hmmm by Charliemopps · · Score: 2

    I bet Ford and GM feel the same way. Perhaps they should stick something in the contract when you buy a car that requires you to destroy it when your done with it and to never sell it second hand to anyone. Then they should install software in the vehicle that allows them to remotely disable it if someone other than you trys to drive it. And if you think this comparison is ridiculous, let me assure you that I've seen purchases for software in the corporate environment that BY FAR exceed the value of any car you could buy and had these very restrictions on it.

    1. Re:hmmm by Silverhammer · · Score: 1

      I bet Ford and GM feel the same way. Perhaps they should stick something in the contract when you buy a car that requires you to destroy it when your done with it and to never sell it second hand to anyone.

      They (along with the federal government) tried that already, at least for a few months. It was called "Cash for Clunkers". It destroyed millions of perfectly good cars, severely disrupting the used car and spare parts markets and depriving many charities of donations, all without having much real affect on new car sales.

  44. The truth they won't tell themselves by erroneus · · Score: 1

    What is keeping them from selling more is pricing too high. If they dropped game prices down to about $20, they would kill the used games market and sell games to people who wouldn't even think about whether or not they would like the game at all.

    1. Re:The truth they won't tell themselves by magamiako1 · · Score: 1

      Oh come on, you gotta look at it from their side! Why drop the price of the game to $20 when they can make selling 2nd-hand copies illegal and sell it for $60!?

    2. Re:The truth they won't tell themselves by pommiekiwifruit · · Score: 1

      People pirate $0.99 iPhone games. I guess they were not cheap enough.

  45. Bad games by Pen420 · · Score: 1

    I just love how game makers always blame everybody else for bad sales rather than the fact they screwed the pooch on this game! I bought mine new and traded it in week later because it's horrible. I'm a huge Fable fan and loved the first 2, but they took a winning franchise and ruined it.

  46. App stores by giorgist · · Score: 1

    Used games
    App store $2 price point
    Online free entertainment

    Welcome to DVDs Vs VHS, there's a paradime shift is upon them ... deal with it

  47. OIC by WillyWanker · · Score: 1

    Ahh, I see, now that they've pretty much given up trying to fight piracy they're setting their sights on the LEGAL sales of previously-owned games. Hey douchebags, why not just make great games and sell them at a reasonable price? No one wants to spend $60 on a steaming pile of horse turd, which is over 90% of the shovelware that publishers are putting out these days. Most of them aren't even worth buying used. And then they are totally flabbergasted why no one wants to buy their shit.

  48. Simple solutions by senorpoco · · Score: 1

    Make games people want to replay and they won't resell them, however judging by the reviews of Fable III it seems they are struggling to make games people want to play once.

  49. Re:Summary's Interpretation is Bizarre by 0123456 · · Score: 1

    Once the initial development costs are covered, selling a game for $5 is still a $4.99 profit for them...

    But if one of those people would have bought it for $60 because they could sell it used, then getting $10 instead is a big loss.

  50. Re:I don't buy it. by loonycyborg · · Score: 1

    They almost admitted that there's no difference between piracy(so-called 'theft') and lawful second-hand sales. This pretty much shows that games don't behave like physical property and 'intellectual property'/'theft' metaphor serves mostly to confuse.

  51. Very interesting point by sigmabody · · Score: 1

    Personally, I find the point very interesting (although perhaps not in the same way as the original commentator). If you account for all potential usage of your product without purchasing it new as conceptual lost revenue, then it's probably fairly accurate: used game sales "steals" more revenue from the company than piracy. However, you could easily extend the argument; for example, if only 3% of customers purchase DLC (a figure recently quoted by EA), then customer failure to purchase all the DLC probably "steals" even more revenue from the company.

    I think the game companies are missing an opportunity to lobby Congress here. If you can outlaw "stealing" by not purchasing all of the DLC, no matter how worthless you might perceive it to be, game companies could make tons more money. I'm sure the total "lost revenue" from people not purchasing all the DLC is an impressive number, and if you could translate that into hypothetical "created or preserved" jobs, you could probably get the idiots in Congress to go for it. A decade ago, I might have said the idea was ludicrous, but in today's world, where government mandates to purchase things are justified, and people can just make up whatever figures they want to justify ludicrous policies, it just might work...

  52. Deal with it. by cvtan · · Score: 1

    So used cars should be illegal in order to prop up new car sales? Not happening.

    --
    Sorry, but gray text on gray background is making my eyes bleed.
  53. Conclusion: by Ambiguous+Coward · · Score: 1

    So what I'm getting from this is that if I want to harm the industry financially, the best tactic would be to steal games from second stores, yes?

    --
    Their may be a grammatical error, misspeling, or evn a typo in this post.
  54. payed once for each copy by Berfert · · Score: 1

    The company that makes (publishes) the game gets payed once for each copy sold/being used in the wild. If two people want to be able to play the game, then they get paid twice.

    The companies that resell used games get payed once for each time they help transfer ownership of one such instance of a game from one person to another.

    Admittedly, its slightly more complicated than that... but I don't see what possible issue can be raised by game companies without the same issue being applicable to any product that has a physical representation that's all that's required to use it, ie one that can be resold.

    1. Re:payed once for each copy by rjejr · · Score: 1

      That reminds me - time to buy stock in tissues and toilet paper.

  55. Re:Digital only will be the rule within 2 gens. by spire3661 · · Score: 2

    Go away until you can understand context and meaning in casual conversation. You KNEW what he meant but you decided to be obtuse anyways. Why?

    --
    Good-bye
  56. Re:Look who is winning by Sinthet · · Score: 1

    I overheard a Gamestop manager giving a new employee a rundown of how to run a register. Basically, he told him to always offer to sell the customer the same game used, if it was in stock, no matter what. Why? Because "We make pennies off new games, and an easy $10-$20 bucks at least on a used one". Essentially, its a win-win for the customer and store, at the cost of developers. Not sure how I feel about the situation, but one thing I do know, is that new games are ungodly expensive.

  57. Timed exclusive at Walmart? by tepples · · Score: 1

    [GameStop has] enough retail power that if they didn't carry something it's sales would be badly hurt.

    GameStop is not the only retailer with power. Imagine a timed-exclusive distribution arrangement with a well-known nationwide retailer that doesn't carry used goods: "Dirt Bags 2. Get it this Tuesday only at Walmart stores and Walmart.com."

  58. Arcade first by tepples · · Score: 1

    If the motion picture industry let retailers rent/sell copies of movies at the same time as theatrical release

    You know, several years ago there was an "arcade window" comparable to the "theatrical window" of motion pictures. How did this die?

  59. huh? by samantha · · Score: 1

    Please tell me how a secondary stream of income, effectively selling the same unit twice, is hurting them more than illegal copies they get nothing at all for. Also please say why the original buyer gets no resale rights or rights to just give it to someone else. What's next? A game console that scans your DNA and destroys the game if you aren't the original purchaser?

  60. Re:Digital only will be the rule within 2 gens. by petermgreen · · Score: 1

    They could do it steam style, ship a copy of the game encrypted on physical media and then force you to tie the key to your account before you can decrypt and install it. That way they could lock things to a purchaser while keeping bandwidth use low. Especially if they don't insist on updates (IIRC steam did insist on updating to the latest version as part of an install from physical media but I may be wrong there).

    --
    note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
  61. if new games cost $10 then maybe i'd listen by jsepeta · · Score: 1

    when new games cost $60, which at many times has been all my expendable money for the month. buying new games is not a priority.

    --
    Remember kids, if you're not paying for the service, YOU ARE THE PRODUCT THAT IS BEING SOLD.
  62. So the answer seems to be by endymon · · Score: 1

    Basically what I see from the discussion so far, is that the solution is for game companies to lower their prices on new very quickly.

    Say, they release the game at $70 on monday. By wednesday there will be used copies in circulation (for most titles), so they need to scale down the prices to used game prices at the same time. And keep them declining as the used retails cut those prices as well. It may not make them as much money per unit, but they will HAVE money instead of the second hand retailers.

    Game companies effectively have 4 choices:
    1) Make games that CANNOT be resold (eg bound to online accounts)
    2) Make games that users DON'T want to resell
    3) Kill first sale doctrine (or something similar)
    4) Price compete with the used game sales. Just think of it as yet another version of pricing to the market. (just like region locking)

    So far I haven't seen any retailers go with option 4. The price always drops 6-12months after release.... by then no one is buying, not even used.

  63. Same is true in books by gregor-e · · Score: 1

    Used books make a huge dent in an author's profits - way more than any piracy. It's relatively easy for authors to see how big the dent is, too, since used sales count on amazon, but don't show up in royalty reports. This is one reason authors are really happy with the locked eBook platforms like Kindle and Nook. I would imagine that game writers are similarly enthusiastic about locked-down platforms like Steam.

  64. What hurts them? by drolli · · Score: 1

    They are hurt by the fact that often you find in game shops the shelves with old/used games directly besides the shelves with new games. So a customer who is willing to pay money will be distracted to spend less money.

    Piracy cant be regulated, but if they manage to pass a law which requires game shops to change that, they could easily find new customers.

  65. Re:Nice Story by ledow · · Score: 1

    Yeah, it's hard to find sympathy when that £10,000 tiny family car is for sale for a few hundred within a few years, normally as soon as it needs a full test to stay on the road.

    My car is 15 years old. I bought it with 30,000 miles for £350. Since then it's done that over again (and a half) without trouble. God knows what was paid for it originally, but it depreciated faster than a house in Fukushima. And then they wonder why I don't want to pay £179 a month for five or so years, and have to pay a huge deposit and a huge final balance (or lose the car, even after 5 years of payments!) to drive something that's new and untested and has expensive parts and unknown problems and costs a fortune to insure, repair and replace.

    I have about as much sympathy for games developers who are "stung" by used-game sales as I do for car manufacturers whose products depreciate to the cost of metal in the car within a handful of years.

  66. Welll, it's just a shift by ledow · · Score: 1

    In the old days, people would buy used because it was cheaper for them, and then the profit from that would go to an independent retailer.

    Now, people can't buy used (not for most PC games anyway), so they will buy *new* only if the price is the same as used, and then the profit will go to the original producers.

    It's the gaming industry's choice - keep prices how they are and expect lost used sales and/or lost overall sales (because people will want to pay less for something they can't sell on again later), or lower prices overall, or very quickly after release, so that you destroy the used sales market and reap their profit instead.

    Either way, the used sales market will die (I would argue that it's already dead for PC, but console is still alive and well). But customers aren't suddenly going to start spending more money than they already do. If you are expecting them to pay more for their games overall, you're probably in for a shock and will see huge drops in sales. But if you drop to a decent price and, like you've able to do for DECADES, make used games sales unattractive, then you could take a share of profits that they used to enjoy instead.

    I've started to see this on Steam - some big-name games are going to silly prices quite soon after launch. But it's still not really emerging enough.

    It's simple. People allocate X% of their income to games and other entertainment luxuries. You can try to do business in a way that copes with that (i.e. stealing more of that X% than you normally would by taking over from the used sales yourself) or you can try to pretend that people will pay more and more and more over and above natural growth just because you asked for it and the game's been hyped in the press. To me, one's a good business strategy and the other's the sort of thing an eight-year-old says (and your primary gaming market now is 18-30, if not older, not children).

    I don't think I've ever bought many games used anyway. I certainly can't remember doing so despite owning many computers and consoles since the ZX Spectrum. All my Spectrum games were new (most were budget because I was a child!). All my Nintendo console games were new, from the Gameboy to the Wii. 99% of my PC purchases were new. Before Steam, I used to buy old DOS titles on eBay but literally that was about the same time as they were either being made freeware (e.g. C&C) or becoming unavailable (and most of which you STILL can't buy on any of the digital download services). I now have several of those old games on Steam anyway, where I basically paid a pittance for not having to faff about with DosBox!

    Used games are dead. You can either suck up their slack by pricing effectively, or you can convince yourself that in times when people can't afford to get to work (if they're lucky enough to have a job), they'll be splashing out more on games just because they are "new" and pretty. To somehow compare it to piracy (which IS also a problem exacerbated by pricing policies, a cause of huge - and wasteful - DRM investment, but one which you'll never eradicate) is ridiculous.

    Sort your pricing out, and the used market won't be an issue - it will be YOURS.

    1. Re:Welll, it's just a shift by ErikZ · · Score: 1

      Unless it's something amazing that I've been waiting for, I just won't spend 50-60$ on a new game.

      At this point I see it more of a "Vote" than actually buying a game. Paying 50$ for a game is me saying "Great work! You're so awesome that you should make another game!"

      --
      Democrats or Republicans. They are both taking us to the same place and they are not afraid of us anymore.
  67. I, too, wish to protest by Chris+Mattern · · Score: 1

    Do you realize how many people are out there who are *not* paying me $100 a day? This is outrageous and is costing me a lot of money! Something needs to be done about this, because everyone should be paying me $100 a day!

  68. What causes piracy is distribution restrictions by Gel214th · · Score: 1

    What has an even larger impact on the bottom line of Developers than Second Hand Games, or Piracy, is Distribution Restrictions which can cause both of these issues.

    If you live outside the United States, Canada and Mexico currently there is NO WAY to get a digital copy of Fable III. That means the other 6 BILLION people in the world have no way to get this outside of waiting for the game to reach their stores. Maybe. (I'd be waiting a long time where I live, since there really are no major chains that support PC Gaming).

    So I can SEE that the game is available on Direct2Drive, Steam (actually steam hides games that are geo-restricted from you). And I have the Credit Card, and the money to make the purchase...but I cannot.

    But I do have 100Mbps internet available to my doorstep. So what do you think myself and other 6 Billion people are going to do after being bombarded by marketing online and at major game review sites on the internet? Charge me a dollar extra if you want to, to compensate for the bandwidth it would take you to beam the game to us rejects out here?

    So in my view the Developers and Publishers can shove it. They create a situation, create a problem and then complain about it, and the RIAA and the MPAA ram legislation and onerous copyright laws through courts; and attach rider agreements to Trade Agreements demanding changes to Copyright Laws in poor and developing countries.

    This doesn't get into the "special" business arrangements that Developers have with their customers, where they want to "license" their products. Why we put up with this unfair and onesided arrangement is beyond me.

    All the Licenses in the world didn't help me when Sony got hacked and my Credit Card and personal information ended up in the hands of hackers did it?
    But Lionhead wants to prevent me from selling my game to a friend or to a store when I'm finished with it because it is "Licensed" and not "owned"?

    There was a time when Customers had rights. I could record a song off the radio and put it onto a tape and play it in my car. When I was finished reading a book, I could keep it on my shelf and give it to my little brother, or hand it to a friend. Developers, Publishers and the Cartels which represent them are taking those rights away through Technology. DRM, DMCA laws etc.

    Did I mention they could go shove it?

    --
    -Gel214th
  69. used games help the market? by taude · · Score: 1

    Here's my thinking. I buy a new game. I play it until I'm done. Then I sell it. What might I do with that $10 I just made? Maybe put it towards the next game I'm going to buy. I have no numbers to back this up but I suspect the used game market helps the new game market.

  70. Why does it hurt so much? by Jasondtx · · Score: 1

    eldavojohn writes "A developer working for Lionhead, the studio behind Fable III, told Eurogamer that piracy is 'less problematic' than used game sales, from a business perspective. Mike West, the lead combat designer for the latest Fable, said, 'For us it's probably a no-lose even with piracy as it is. But, as I say, second-hand sales cost us more in the long-run than piracy these days.' So downloading a game is bad, but apparently stopping by a second-hand store to pick up a licensed physical copy of the game ends up hurting them even more." first off, hats to you all at Lionhead and all of your achievements. it takes alot of work to make a great title, however... in order to get rid of the second-hand store maybe you should try making the game worth playing, last fable was outdone by its outstanding ~10 hour Single player, and its glitched out multi-player. you can consider a network of gamers watching the commercials for fable, heavy anticipation, then release day... my facebook blows up with everyone very content with their ~60$ purchase of fable III... (consider most gamers who would stay true to fable be at the midnight release)... next day comes, people are still talking about fable, seems like things are looking good. when all of the sudden, the game is over with less then 10 hours of single player. (like MOST games that get spit out like hot cakes, most obvious genre would be the FPS) Ok, well the single player was awesome... lets check out the multi-player, oooo was dat? its glitches... well, now its time to see how many different ways i can beat single player(not many). now, WE ALL KNOW THE NEXT STEP. turn it in for less then half the price, because its replay value diminished after 2 weeks given time. a lot of games today dont have high replay value because competitors are keeping releases on high demand, and im sure it cuts away from the time and care the people who actually make the game take to reach its potential. i honestly believe this game had everything it need for the exception of replay value, and what killed it was the short story.

  71. Re:Digital only will be the rule within 2 gens. by Khyber · · Score: 1

    Ignorance of prior legal decisions is not an excuse, that's why.

    --
    Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.