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A Semi-Reasoned Analysis of the Used Game Conundrum

Posted by Cole Stryker

 

Over at Gamasutra, Frontier Developments' David Braben talks about the resale market. I think he has a realistic perspective, a welcome change from the whiny, ranty position that some developers often take.

"...we don't see anything from the used-game sales, which is one reason why the price of new games throughout the industry remains artificially high," he says. "I mean, the industry has to make all its money from the first sale since we don't get a penny from the subsequent dozen or so sales of that same game."

First of all, in a free market there is no such thing as "artificially high" prices. The games are sold at whatever the consumer is willing to pay. This is the invisible hand at work, people.

 Gaming analyst at-large Michael Pachter knows what's up:

"The only real meaningful threat," says Pachter, "is for publishers to stop supplying GameStop with packaged products. And, so far, nobody has made that threat. But, frankly, if it's not [Electronic Arts CEO] John Riccitiello or [Activision CEO] Bobby Kotick, it doesn't really matter. The other guys don't matter. I mean no disrespect to anyone else, but who cares what anyone else thinks?"

The analysis reminds me a lot of Morgan Spurlock's documentary about fast food, Supersize Me. Throughout the movie, he rails on McDonalds, pointing out vague nutritional information, greedy business practices and the like. At the end of the film, he points the blame exactly where he should: the customer. They are the ones responsible for their own destiny. No one is forcing them to go to McDonalds. Of course, in this case, we're talking about the developer. No one is forcing them to sell their games to Gamestop. In fact, as I pointed out not long ago, they are figuring out ways to cut out the middleman, and it's beginning to work.

There are two other options, and Gamasutra's Paul Hyman has taken these into account:

And, indeed, OTX's research confirms that action games and shooters drive the resale market at 60% while only 20% are MMOs which take considerably longer to play. The main reason that gamers hold onto a title is replayability (69%) which is why the top two "keepers," OTX reports, are Guitar Hero III: Legends of Rock and Rock Band.

 

Give the customer a reason to hang on to your game, whether it's downloadable content, online play, excellent multiplayer, or even fancy packaging with an action figure thrown in. 

Last but not least, lower the initial sale price. We are in a recession, after all.

 Related Links:

Game Designers: Rockstars, Auteurs, Dweebs?
Gamestop: We Ain't A-Skeered
The Big Question: Are Games Depression Proof?

+ DIGG + DEL.ICIO.US + REDDIT

Comments

Roto13 said:

I don't think the average game is resold a dozen times.

I hate it when developers act like people are doing something wrong by treating games the way they treat anything else they own. People sell their DVDs, CDs (back when CDs existed), cars, books, furniture, everything. Look around whatever room you're in right now. Most of the things you see are things you could probably find on Craigslist. Why do game developers think they deserve some kind of special consideration? Are they all new to the world?

I rarely ever sell my games, but I've bought quite a few second hand because after a few months, new games tend to disappear. Nintendo likes to keep their games selling forever, but it's like everyone else forgets their games exist after a couple of months.

December 15, 2008 11:21 PM

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John Constantine, our superhero, was raised by birds and then attended Penn State University. He is currently working on a novel about a fictional city that exists only in his mind. John has an astonishingly extensive knowledge of Scientology. Ultimately he would like to learn how to effectively use his brain. He continues to keep Wu-Tang's secret to himself.

Derrick Sanskrit is a self-professed geek in a variety of fields including typography, graphic design, comic books, music and cartoons. As a professional hipster graphic designer, his recent clients have included Hooksexup, Pitchfork and MoCCA, among others.

Amber Ahlborn - artist, writer, gamer and DigiPen survivor, she maintains a day job as a graphic artist. By night Amber moonlights as a professional Metroid Fanatic and keeps a metal suit in the closet just in case. Has lived in the state of Washington and insists that it really doesn't rain as much as everyone says it does.

Nadia Oxford is a housekeeping robot who was refurbished into a warrior when the world's need for justice was great. Now that the galaxy is at peace (give or take a conflict here or there), she works as a freelance writer for various sites and magazines. Based in Toronto, Nadia's prized possession is a certificate from the Ministry of Health declaring her tick and rabies-free.

Bob Mackey is a grad student, writer, and cyborg, who uses the powerful girl-repelling nanomachines mad science grafted onto his body to allocate time towards interests of the nerd persuasion. He believes that complaining about things on the Internet is akin to the fine art of wine tasting, but with more spitting into buckets.

Joe Keiser has a programming degree from Johns Hopkins University, a tiny apartment in Brooklyn, and a fake toy guitar built in the hollowed-out shell of a real guitar. He writes about games and technology for a variety of outlets. One day he will stop doing this. The day after that, police will find his body under a collapsed pile of (formerly neatly alphabetized) collector's edition tchotchkes.

Cole Stryker is an American freelance writer living in York, England, where he resides with his archeologist wife. He writes for a travel company by day and argues about pop culture on the internet by night. Find him writing regularly here and here.

Peter Smith is like the lead character of Irwin Shaw's The 80-Yard Run, except less athletic. He considers himself very lucky to have this job. But it's a little premature to take "jack-off of all trades" off his resume. Besides writing, travelling, and painting houses, Pete plays guitar in a rock trio called The Aye-Ayes. He calls them a 'power pop' band, but they generally sound more like Motorhead on a drinking binge.


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