I get what devs are complaining about, but to say that used games are kiling the industry is pretty ridiculous in my opinion. I know Gamestop is considered bad and evil, but we all seem to forget the impact they've had in making video games available on practically every street corner. There are Gamestops EVERYWHERE and while they do sell used games, they also bring in a ton of new game sales.Just look at how much they push preorders. All of those preorders are money in the devs pockets as long as you don't cancel it. Gamestop, along with Best Buy and Walmart have played a huge role in bringing video games to the masses.
With that said, I think the biggest issue is that gaming is entering the same place that movies/tv/music/books are in. So many people want a piece of the pie and want to hit it big, but due to saturation of the mariket, only a handful see that success. There are so many games that come out, and due the limit in the amount of time and money we have, only a handful of those games are going to be big hits.
I also think this is an issue with the whole publishing structure of this industry. When you look at how much money the console manufaters get on top of the amount of cash the publishers get, developers are only getting pennies on the dollar. You see the same thing in the music industry. Artists get screwed so bad by the record labels that unless you go gold or platinum, you aren't gonna make much off an album (touring is how most of them make their cash). Devs are in the same boat in gaming. Unfortunately publishers have the power and until that changes, we are going to continue to see devs fail.
In regards to used games specifically, I think it helps more than people are willing to admit. First off, the comparisons to piracy are ridiculous and uncalled for. Frankly is makes devs who say it sound like an immature child. With that said, used games helps bring in more people into the industry. People who get certain games used could very well end up getting future releases new in the future. Think about somebody who maybe finds a used copy of Mass Effect or Mass Effect 2 for $10, rather than the full retail price. The lower price got them in the door, they play the game, fall in love and then drop $60 on the preorder for Mass Effect 3. Without the ability to get the older games cheaper, they probaly would never have purchased Mass Effect 3. Used games makes more games available and that in turn helps sell future titles. It's worked for me a number of times. In addition, buiying new games and being able to sell them back makes many of us able to buy way more new games. Without any of these options provided by the used market, people are going to be much more picky about purchases, where I think even more than before, only the big names and major titles will get good sales. If renting is killed as well, even more so.
Finally, regarding digital distribution, I think most gamers live in a bubble. Most of us who are into gaming enough to where we post on forums are also going to make getting the best quality high speed internet a priority. For the general population, who make up a huge chunk of the gaming market, don't really care. Plus there are still many people without good affordable high speed internet options, especially in rural areas in the US. Therefore, making us purchase Xbox 720 or PS4 games online only, which will probaly be 20-30 GB a pop is going to take a lot of people out of the market. After eliminating all those who don't even hook up their Xbox 360 or PS3 online, many don't have to the connection to download a game of that size unless they leave their system on for week. Add in the bandwidth caps that exist overseas and I feel will eventually reach us in the US (Comcast already has a 250 GB limit that will cause you to get dropped from their service if you go over it twice in six months) and digital distribution is going to really limit how many games we can buy, who can buy these games, and who can download them in a reasonable amount of time. Digital distrubtion as an option is fine, but as the only option, not a chance right now.
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