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Game Makers Strike Back At The Used Game Market
firefly2003
Member UncommonPosts: 2,527
Buying and selling used video games has become a fact of life for many consumers -- but if game publishers get their way, it's about to become a lot more difficult.
One 2009 estimate puts the size of the used game business at about $2 billion, representing about one-third of all annual game sales. That's a big deal, especially for market leader Gamestop, which is thought to get over 40% of its profits from reselling traded-in games. Major retail chains like Best Buy, Walmart, and Amazon have all dipped their toe in this lucrative market over the past year.
But while it's a serious earner for retailers, it's a complete bust for game publishers, who make nothing from secondhand sales of video games. They're looking for ways to get a piece of the pie -- or, failing that, to take the pie away altogether. Here's a few of the tactics they're using to make buying and selling used games harder for consumers.
Single-use download codes
Were you one of the millions who bought smash hit space opera Mass Effect 2 last month? If so, you probably noticed it came with a card bearing a code that gives the purchaser access to the game's online "Cerberus Network," containing all manner of downloadable goodies. Buy it used, though, and you'll have to pay a $15 fee first. Ouch.
Multiplayer restrictions
But those are extras, right? You can still play the game without the Cerberus Network, if you don't want to pay. Nobody's actually removing features from games for used purchasers, are they?
Actually, yes, they are. Just-released PSP shooter SOCOM: U.S. Navy SEALs Fireteam Bravo 3, which proudly trumpets "a robust competitive multiplayer component...continuing the franchise’s tradition of unparalleled multiplayer gaming," requires buyers to register online before they can access its online modes -- and that's a one-time deal. Buy it used, and you'll have to fork over an additional $20 (which goes straight into the publisher's pocket) if you want to play online.
Digital distribution
Buying games through Xbox Live, the Playstation Network, Steam, or other download channels is convenient. It's quick, it's easy, and because your purchases are tied to your account (Xbox Live ID, Steam username, etc.), you can re-download them easily in the future. But what you gain in convenience, you lose in value: there's typically no way to transfer ownership of these games without giving up your whole account. Want to sell just one digitally-purchased game? Tough.
Limiting installs
Think you can avoid that by only buying physical copies of PC games? Not so. Take Spore, one of the best-selling titles of 2008: if you have a physical, boxed copy of the game, you can certainly resell it. But the buyer won't actually be able to install the game without the username and password originally used to register it. Don't have that? Better hope you can convince the seller to cough it up, or else you're out of luck.
Discuss...original link
videogames.yahoo.com/events/plugged-in/game-makers-strike-back-at-used-game-market/1390305
The pure greed of these publishers has just reached a new low, it looks like soon I'll be going back to old school PC and console games, how can it get any worse?
Comments
I actually like Steam quite a bit - your purchases are tied to your account and not your computer or any specific game install, there's no install limits, and unless it's something retarded like Ubisoft you don't need to be online to actually play your games. I find the mechanics of it actually save me money as there's been games in the past I've had to re-purchase after losing the CD or original install files.
Ever since the shift to disc-based media for console games I've been less than impressed with the quality of both goods and service from resellers, games actually worth buying never drop in price much, certainly not enough to warrant the generally low quality of secondhand discs, and they never want to take them back, regardless of what they say. Secondhand shops add nothing to the value of the product, they fill a niche right now but it's not anything critical to the gaming community, unless you're 14 or so poor you really should have higher priorities than saving $5 on FFXIII.
Gaming trends always start on the PC and shift to consoles. Because of this I expect the 8th generation consoles (when they finally get here) to be almost entirely download based. Xbox Live isn't as good as Steam IMO but it could get there I think.
See, for PC games I don't see any problems with digital distibution since you've never really been able to trade used PC games. I'm not a big fan for console games because I normally take all the games I'm done with up to Gamestop every couple of months and get a little cash back for my next purchases.
publishers/developers are getting pretty greedy these days whats next are the car dealers and electronics retailers going to be demanding a piece of the pie when you resell your cars and tv's/computers lol
And Massive Effect 1 that you only can install 5 times.
What if you bought a DVD or a Blu-Ray and only could watch the movie 5 times and then you had to buy a new copy.
People would be getting furious beyond belief.
Someone would probably argue that you don't need to see the same movie 5 times and if you do need to you should buy it a second time.
All those memories will be lost in time, like tears in the rain.
for some reason they think this and the drm is going to empower them but I think it is only going to encourage more pirates and increase the numbers that use them
As far as I heard the movie industry considered doing that. But after some protests and consideration removed it.
Though music and publishing industries, same as computer sellers look for ways to profit from reselling, as especially in the digital age now the quality of the product does not really change. (except scratches on dvds)
As far as I heard the movie industry considered doing that. But after some protests and consideration removed it.
Though music and publishing industries, same as computer sellers look for ways to profit from reselling, as especially in the digital age now the quality of the product does not really change. (except scratches on dvds)
exactly hehe are you going to pay them to keep your disc scratch free even if your capable of doing it yourself
As far as I heard the movie industry considered doing that. But after some protests and consideration removed it.
Though music and publishing industries, same as computer sellers look for ways to profit from reselling, as especially in the digital age now the quality of the product does not really change. (except scratches on dvds)
Yeah as things are going with digital download and whatnot I think that in the near future you would actually just rent the games for a limited time but you would be paying full price or even more than what a physical copy costs today.
It's a wonderful new world isn't it?
All those memories will be lost in time, like tears in the rain.
Personally, I've bought a number of games used that I would not have otherwise purchased. In some cases, I've gone on to purchase DLC content. So, for me, the publisher actually made money where they would have had none had I only had the options to buy it new or buy it and pay "X" amount to be able to play. I can't be the only person in this situation and I'd be interested to see if this becomes an illustration for the law of unintended consequences.
Another thing I think might be interesting to look at is how many of these used sales are new-ish games. I mean, the ones I end up getting are months old and have generally already exhausted their hype..Hell, I just picked up Fable 2 for about $10 or so and it is over a year old :P. But the point being, did the publisher expect to be cashing in on sales of the game a year past its release? Maybe they were, but I don't get the impression that they forecast their profits based on any level of legacy sales (minus releasing "greatest hits" type games).
-mklinic
"Do something right, no one remembers.
Do something wrong, no one forgets"
-from No One Remembers by In Strict Confidence
Typical human nature: "If I can't have it, you can't either."
Very typical and not surprising. Not that I resell my PC games, but this is nothing new. Epic got flamed big time either last year or in 2008 for basically demanding a portion of Gamestop's profits on used games, and also pretty much abandoning the PC market due to "piracy".
It's becoming more of a joke as time goes on, and I may consider only buying games off gog.com pretty soon.
Yeah, can easily see gaming going 100% download.
From an industry perspective it has a lot of merit; it utterly spanks the used games market and it's even environmentally friendly as it saves using resources (and money, which of course is of secondary concern) on packaging and mass-producing gameboxes. One would also think that taking the retailer out of the equation would have a beneficial effect on their profit margins.
From a gamer perspective, it's definately double-edged. Losing the used games market is undoubtedly a negative thing from the perspective of anyone who has ever bought/sold a used game (or even borrowed one from a friend).
On the other hand, it is very convenient to be able to just download and install a new game. No game boxes to store, no discs to potentially damage or have to hunt down when you want to play a game that requires the disc to play .. and it's not as if HDD space or broadband speeds are a concern these days. Even my PS3 has a 500GB HDD now.
From an incorrigibly optimistic viewpoint; it might also result in cheaper games.
Playing: EVE, Final Fantasy 13, Uncharted 2, Need for Speed: Shift
I actually prefer digital download, since boxes just lie around. And since the days of games in DVD size boxes, you don't really "see" them in your collection anyway. Collector Editions are an exception I can imagine buying a box - but then it should be more just a tin-box with a new picture and special ingame item which gets obsolete after an hour of gameplay.
What I don't like about digital download is the fact, that new releases are horrendeously expensive in comparison to the boxed versions.
On the plus side, older games that wouldn't work on a new system (say KOTOR under Vista or Win7) now do work.
Used games should be supported since in my eyes they prevent some of the piracy - people with less money can thus afford games anyway (kids, or relatives to kids who don't want to dish out even if they could) instead of (only) downloading illegally.
more convenient for who? the retailer to jack up your price and you as the consumer not able to at least wash out a portion of that jacked up price when your done with said game?
you think this movement is going to lower the prices you pay for games I think you need to re evaluate whose side your on
I am sure you wouldnt be spouting this nonsense if the car company of the vehicle you owned all of a sudden wrote you a bill when you tried to resell said vehicle wake up
I like your attitude. I'd love to see the latter, given that such a move could influence lower prices. You never know.
Personally, I've never taken advantage of the used game market much at all. I've returned possibly 3 console games in my life, never really bought used games, and have every original boxed copy of PC games I've purchased in stores. Then again, I'm not one to cycle through game after game after game, so I suppose it depends on your personality. Add into that, that over the past decade, the majority of my gaming has taken place in MP or MMO games and there's been no real possibility of returns (at best, sell your account which I've never done) and it's easy to see how this would have little to no effect on me. Besides, Steam has already taken over as my primary source for most games, and other than that I go for digital downloads over boxed copies in every situation possible. In fact, I haven't purchased a boxed copy of a PC game in almost two years, having relied on Steam and digital copies of the F2P MMOs I've tried and played, to the recent mistake of Aion, and now to Fallen Earth (MMORPG.com giveaway ftw).
Anyway, to me I see this as a console issue, which hasn't been my cup of tea since N64 in the 90's. Sucks for those that pretty much stick to the consoles. Besides, pirating games for a console takes so much more effort, and actual physical modification to a console to make them work, so most aren't going to bother. IF consoles were to go a stricter route, I could definitely see where the publishers would expect greater income, but it definitely would suck for the players who otherwise wouldn't pay full price.
@docminus: That's irrelevant to the publishers who don't see a dime off used box sales, and that's their problem. I mean, used copy sale, or illegal download - they don't make money off it.
"The power of accurate observation is commonly called cynicism by those who have not got it."
George Bernard Shaw
What is a cynic? A man who knows the price of everything and the value of nothing.
Oscar Wilde
They should be trying to get a part or all of the 2nd hand market not stopping it. That's the problem with greed it's so shortsighted. I can think of a few ways but may see if I can make money out of it rather then posting here. Anyhow there is huge potential in this area I think, if the developers could remove their heads from their accountants asses long enough.
They need to realise that the consumer is not their enemy here, yet all of the anti-pirating or efforts to get unto the used game market attack only the consumer and that just doesn't make sense, talk about biting the hand that feeds you.
-----
The person who is certain, and who claims divine warrant for his certainty, belongs now to the infancy of our species.
The whole idea of download is to remove the retailer from the equation.
Games aren't cars, that's a ridiculous comparison.
When you buy a game box, how much of that price goes towards packaging, distribution and the profit margin of the store you bought it from? .. it's a significant amount. Remove all that from the equation and game makers can vastly increase their profits and still reduce the price to the consumer. Will they? .. that's tough to say .. depends on how greedy they are.
Sue me, I'm an optimist.
Playing: EVE, Final Fantasy 13, Uncharted 2, Need for Speed: Shift
the publishers saw more than a dime of of it they sold it new no game left there sales bracket without seeing a dime
The whole idea of download is to remove the retailer from the equation.
Games aren't cars, that's a ridiculous comparison.
When you buy a game box, how much of that price goes towards packaging, distribution and the profit margin of the store you bought it from? .. it's a significant amount. Remove all that from the equation and game makers can vastly increase their profits and still reduce the price to the consumer. Will they? .. that's tough to say .. depends on how greedy they are.
Sue me, I'm an optimist.
For the large part this is a moot point, at least least for the near future (5-10 years, before the power runs out anyway
).
The fact is a large portion of people just don't want to or don't have the realistic facilities to d/l 100% of their content.
-----
The person who is certain, and who claims divine warrant for his certainty, belongs now to the infancy of our species.
The whole idea of download is to remove the retailer from the equation.
Games aren't cars, that's a ridiculous comparison.
When you buy a game box, how much of that price goes towards packaging, distribution and the profit margin of the store you bought it from? .. it's a significant amount. Remove all that from the equation and game makers can vastly increase their profits and still reduce the price to the consumer. Will they? .. that's tough to say .. depends on how greedy they are.
Sue me, I'm an optimist.
no I am sry that is not a ridiculous comparison a game is a product a car is a product a television is a product a computer is a product a movie is a product I only see you as someone who is viral marketing go read the response to the actual add that the OP copied it from you are not an optimist you are only empowering bad business next your going to be condeming blockbuster and why shouldnt hollywood get a piece of the used market pie then sony why shouldnt they get some profit when a tv they sold new is sold again used
i believe this trend !if you remoove all online game it still leave a store 85 % full so only 15 % of space is actually online game in ebgame like store!only 15% is dedicated to online game!why is this ?because with non online game game can be resold over and over not so with online game.
Yes, it is a ridiculous comparison.
Unless you've figured out a way to digitize a car and distribute it electronically?
And the ridiculous statements keep coming; I'm a viral marketeer because I disagree with you?
As someone who doesn't pirate games and rarely (if ever) trades in or buys used games, I see download distribution as a method that game makers can reduce their overheads and pass on a portion of that saving to the customer in the form of reduced prices. That's optimism, baby.
Playing: EVE, Final Fantasy 13, Uncharted 2, Need for Speed: Shift
As a gamer , I like to buy games when I go to my local Gamestop and they have used games for consoles that I have that are in the 1.99-15.00 price range I tend to grab a lot of them up , they make a sale and I have months of entertainment at a low cheap cost for games that are 5- 10 yrs old, now if the gaming industry wants to take that option away from me to pay less to buy legal copies of used games I see that as a problem, and that is just pure greed, as the articles stated they are trying to make people that buy used games for some titles pay them a fee just to play the multiplayer portion of a title , not cool.
I like buying boxed copies of games myself , I like the option of installing a game without a internet connection which is really not that great and can barely play MMOs anymore cause of it, (wireless in a rural area) other options , dial-up or satellite ( not acceptable) so when consumers that cant even get wired broadband with reliable speeds and stability, and making all game fully 100% downloadable leaves many gamers across the world behind.
If this is the route they wish to take then my archived library of games from the 80's to the end of the 20th century will do me just fine I guess. And with cheaper costs to buy games online I really never have seen the price difference change much from store to digital download unless its on sale.
In response, to Hollywood wanting to charge people after so many views of watching a movie, I won't buy into it and many other people won't either, I have spent way to much on my collections for to be charged again just to watch stuff I already bought, America has become the land of vulture capitalism enjoy it while it lasts cause it won't be around forever.
The only used games I've ever bought are for consoles, and that was back when I played consoles. For consoles, I agree it's a good thing, but for PC, I could care less. As someone mentioned earlier, Steam is a good alternative, I keep my games installed on one computer so I don't have to worry about install limits (unless I really lose interest and I need hard drive space), and the dreaded, evil DRM of Ubisoft, requiring you to have an internet connection while playing AC2 (so you can also stay connected to Uplay), has not bothered me once. Nope, I just log in to the launcher and play. I did get it after the attacks on the Ubisoft servers, though.
I figured used games were popular, I always saw them as a good option, but I didn't know stores like Gamestop even sold physical PC games anymore. Oh, wait, there's one little shelf in the back corner with the rats and the skeleton rotting in the corner. Nevermind. I didn't know they made up that much of the market. Still, what percent of that 40% is used console games and what percent is PC?
i thought this was interesting to read on the wiki
In practice, all widely-used DRM systems are eventually defeated or circumvented.[5] Completely restricting the copying of audio and visual material is impossible due to the inevitable analog hole.
http://en.wikipedia.org/wiki/Digital_rights_management
ok sony already had a series of class action lawsuits against them for using drm in thier music discs interesting to say the least
Yes, it is a ridiculous comparison.
Unless you've figured out a way to digitize a car and distribute it electronically?
And the ridiculous statements keep coming; I'm a viral marketeer because I disagree with you?
As someone who doesn't pirate games and rarely (if ever) trades in or buys used games, I see download distribution as a method that game makers can reduce their overheads and pass on a portion of that saving to the customer in the form of reduced prices. That's optimism, baby.
lol wow you keep up the viral marketing how much are they paying you? I dont nor ever had pirated there buddy but i guess you dont trade in any used goods either because your are trying to make a distinction that only what your are trying to sell would be happy with obviously you are not someone paying for goods but seems more like you are working for the major market oh and come back with whatever you want I already know your opinion is not the majority in this issue and I fail to see why you are trying to defend it but like i said before if you started getting taxed or charged extra for buying used products Im sure you wouldnt be so argumentative about it unless you really are viral marketing this new scheme