Used games and MMOs are "bright spots" in games
by Christopher Grant 
{ Feb 7th 2006 at 4:00AM }
The New York Times' Seth Schiesel
looks at the recent poor performance of EA and the anticipated performance of other
domestic publishers. While much of the poor performance may be attributed to common culprits, like the dearth of Xbox
360 consoles and transitional difficulties, there is one other thing.Schiesel writes, "... game publishers in the United States are still almost entirely in the same business they have been in for 20 years: selling new games at retail." Subscription-based MMOs and used-games are both profitable avenues that represent "a major challenge to the publishers' traditional business model."
Game retailers thrive on the used-games market; even big-box stores like Best Buy want to get in on the action, much to the chagrin of developers and publishers everywhere. For now, the bad blood between retailers and publishers will continue: Gamestop's most recent quarterly earnings were "eye-popping" while EA's shares are down 11 percent over the period.
Reader Comments (Page 1 of 1)
geves @ Feb 7th 2006 5:16AM
maybe true, maybe not.
seems to me like another jerk trying to spin it, blaming consumers (like buisness always do).
or it could be the fact that consumers are starting to notice that EA produces mostly yearly titles and their tired of paying full price for minor tweaks in gameplay and graphics, every year.
Stevo @ Feb 7th 2006 6:37AM
I certainly hope consumers are voting with their wallets and staying away from EA's tired rehashes.
Part of the problem for me is the price of the games. Why pay £40 when in a couple of weeks time there will be one in the second hand bin for £30.
Also there's the fact that I always buy XBox games second-hand, because I don't want to give any money to Microsoft, but that's another matter.
vince @ Feb 7th 2006 7:12AM
i agree with number 2 i mean recently i bought halo 2 for 9.99 new and makes me laught ppl on launch day spent 49.99 on a short game. Hell earlier this week i bought half-life 2 brand new for 29.99. Prices of games shouldnt even be 49.99 ppl that have a 360 defently dont wanna pay 59.99 plus tax for some game. Me i just goto my local blockbuster and either rent it or buy it.
ramuji @ Feb 7th 2006 7:22AM
"Also there's the fact that I always buy XBox games second-hand, because I don't want to give any money to Microsoft, but that's another matter."
My case is similar, but from the opposite perspective. Since buying a used Gamecube in December, I've been purchasing only used games. I think when the Revolution comes out I'll buy a new one, and probably buy new games often, although probably not all of the time. I've gotten back into Nintendo through the used market, but look forward to supporting them directly with the next generation.
--
ramuji
www.ramuji.com
Pal @ Feb 7th 2006 8:09AM
Although pricing could be rationalized (movies are $20 for ~100min of entertainment while games are $50 for usually many more), but money is money.
In Japan, used games stores are really taking off. The Japanese culture doesn't really like used things and love the new, but it's hard to feel that way all the time when games cost around $65-80.
Chrono Trigger, while a great game, should not have cost ~$114 when it first came out...then again, it's a far better deal than Robocop 2 which cost $110 when it first came out on VHS.
MacAttack @ Feb 7th 2006 8:24AM
I've always bought used games anywhere from 10 to 30 dollars. I mean compared to a 50 dollar game which will go down in a only a couple of weeks is just a the smarter thing to do. I've only paid 60 dollars recently for xbox 360 games because I had to play something. I even got PDZ used for 40 in only a couple of weeks from its launch.
dogs @ Feb 7th 2006 9:04AM
Buying second hand may win your battle against gamestore and publisher profits but it doesn't put any money back in the hands of the programmers/developers who are also being paid a pittance in comparison with the profits made by their employers, publishers and gamestores.
Personally I think online purchasing systems like Valve's Steam are the answer. Ideally the savings made in avoiding publishers and retail outlets is invested back into game development.
bornonce @ Feb 7th 2006 9:13AM
The problem is, both Microsoft and Nintendo figure in retail game sales as part of their marketing strategy, whichiswhy they sell the console hardware at a loss. Used game sales completely disrupt their marketing stategy, and probably contributed to the losses both SCE and MS gaming divisions suffered. I know that it is a very unpopular idea, but I think that Sony in particular will use a technology in the future (primarily Blu-Ray and the PS3) that REQUIRES you to reactivate a game for a fee if you have to (or want to) install it on another machine. Such a dual-purpose disc (which has a dedicated sector for ONLY writing a machine's private key) is not beyond the realm of comprehension.
bornonce @ Feb 7th 2006 9:16AM
Edit no. 8. I meant Microsoft and SONY.
dogs @ Feb 7th 2006 9:25AM
Gong to contradict myself now...buying used games doesn't win any battle against gamestore profits. It just adds to gamestore profits. They sell a game new, buy it back for a fraction of the original price price then sell it again at a slightly lower than new price repeat ad finitum. Anyone buying used games is still being ripped off IMHO.
And then there's the gamestores who buy back games and then sell them as new...ever bought a new game and wondered why it's not shrinkwrapped and there are one or two minor scratches on the disk?
ScottE @ Feb 7th 2006 9:57AM
The Content Market is changing. Traditional Distrobution methods are being challenged the the Internet. And the traditional content providers i.e Record Companies, EA, etc. are scrambling to cover their losses as their old style of selling(read ripping off) the customer is going by the wayside to Online Distrobution. Steam is a prime example of mainstream online distrobution implemented correctly.
Clifton Helpingstine @ Feb 7th 2006 9:59AM
Well I'm sure all the profits for these gaming stores reselling games will plummit when more people start using http://www.itradevideogames.com
AlanS @ Feb 7th 2006 12:25PM
You can buy used clothing, you can buy used cars, you can buy used CDs, why should video games be any different?
Pal @ Feb 7th 2006 1:12PM
"And then there's the gamestores who buy back games and then sell them as new...ever bought a new game and wondered why it's not shrinkwrapped and there are one or two minor scratches on the disk?"
They're not bought off other gamers, rather it's re-shrinkwrapped since employees are allowed to take the game home and play it, and then shrinkwrap it back and sell "as new." The reason for this is so that the employees can further assist customers about a particular game in detail.
I don't agree to this rule, since if they're truly gamers they'll either buy the game, rent it or read reviews of it via magazines or on the internet.
It's not fair that you have to pay full price for an opened game, even if it was handled by a "responsible" employee. If it's opened, it's used - at least take a few bucks off.