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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."

17 of 342 comments (clear)

  1. 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. 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.
  3. 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.

  4. 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.

  5. "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 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."
    3. 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?

  6. 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).

  7. 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
  8. 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.

  9. 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.
  10. 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!
  11. 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.

  12. 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.

  13. 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!