"End of used games would have severe consequences for gaming"

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nintendoboy16

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#1 nintendoboy16
Member since 2007 • 42227 Posts

That is what analyst Mike Hickey of Janco Partners said to MCV.

"While publishers have traditionally frowned on used game sales, the thoughtless eradication of the used game market could have severe and unexpected consequences for the industry. We strongly believe used game sales drive new product sales and dampen piracy incentives."

But he also says this:

"We believe that the first sale doctrine currently protects used game retailers' customers rights to sell legally purchased software. We expect the decision will likely be appealed again, as the verdict has implications beyond gaming; movies, books, etc."

Thoughts?

I don't know, but this is the first time I'm agreeing with an analyst here.

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Raymundo_Manuel

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#2 Raymundo_Manuel
Member since 2010 • 4641 Posts

I can't imagine any "severe consequences" that would come from ending used sales.

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SakusEnvoy

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#3 SakusEnvoy
Member since 2009 • 4764 Posts

I can't imagine any "severe consequences" that would come from ending used sales.

Raymundo_Manuel

How are we going to pick up games that are out of print?

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VideoGameGuy

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#4 VideoGameGuy
Member since 2002 • 7695 Posts

I can't imagine any "severe consequences" that would come from ending used sales.

Raymundo_Manuel
in a perfect world new game sales will slide dramatically thus forcing publishers to sell their games at a reasonable price for once.
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NVIDIATI

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#5 NVIDIATI
Member since 2010 • 8463 Posts

Also this would cause problems for renting games.

Take BFBC2 for example. If you rent the game you are limited online and miss out on all of the VIP content that is normally given free when you buy the game.

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Vaasman

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#6 Vaasman
Member since 2008 • 15877 Posts

I've never really understood why used games are so controversial. So when people sell used toys, books, records, movies, computer parts, furniture, etc., it's no biggie, but with used games, it's an epic ****storm? What's so different about used games?

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SapSacPrime

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#7 SapSacPrime
Member since 2004 • 8925 Posts

I can't imagine any "severe consequences" that would come from ending used sales.

Raymundo_Manuel
Thats not very imaginative of you then is it :P I know some people locally who rely on trade in cash to buy their next games, a lot of people would not buy as much if at all if they didn't have the right to sell it on afterwards. Remember to us gaming is worth spending out on, to a lot of people though if it becomes to expensive they could quite happily move on.
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Gxgear

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#8 Gxgear
Member since 2003 • 10425 Posts

I'm only against used game retail like Gamestop. Person-to-person sale is fine with me, not that I do it.

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BrunoBRS

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#9 BrunoBRS
Member since 2005 • 74156 Posts
the first part of the argument makes sense. i'm trying to figure out WTF he meant with the second one.
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VideoGameGuy

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#10 VideoGameGuy
Member since 2002 • 7695 Posts

I've never really understood why used games are so controversial. So when people sell used toys, books, records, movies, computer parts, furniture, etc., it's no biggie, but with used games, it's an epic ****storm? What's so different about used games?

Vaasman
Mostly because the industry has no idea what they're doing. The high cost of development is what's killing the industry right now. You shouldn't have to sell millions of millions of copies just to make your money back. That is a horrible business model in a especially picky industry.
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Mystic-G

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#11 Mystic-G
Member since 2006 • 6462 Posts

Last I checked, PC gaming was still alive.

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delta3074

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#12 delta3074
Member since 2007 • 20003 Posts
if they stopped pre-owned sales it would mean the end of retail games, gameshops keep themselves open with pre-owned sales,as they actually make very little off the first sale, and with digital distribution only accounting for 15% of games sales, if gameshops colllapse, the publisher will have no distribution outlet except digital download which isn't enough to keep every publisher afloat.
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SapSacPrime

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#13 SapSacPrime
Member since 2004 • 8925 Posts

[QUOTE="Vaasman"]

I've never really understood why used games are so controversial. So when people sell used toys, books, records, movies, computer parts, furniture, etc., it's no biggie, but with used games, it's an epic ****storm? What's so different about used games?

VideoGameGuy

Mostly because the industry has no idea what they're doing. The high cost of development is what's killing the industry right now. You shouldn't have to sell millions of millions of copies just to make your money back. That is a horrible business model in a especially picky industry.

I agree and add it is also likely to be due to how much a lot of these large companies like EA and Vivendi have paid for the developers, now they want thier money back (as you would with such huge investments, but its taken us in a bad direction).

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lundy86_4

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#14 lundy86_4
Member since 2003 • 62037 Posts

I don't understand the taboo of the used market, as it ranges from everything such as toasters to used cars. Understandably publishers/devs want more money, but it'll likely limit a lot of buyers from purchasing games at all (bargain hunters) or limit the amount of game sold within a short time frame (people will likely spend less in the short term, due to higher prices).

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Mystic-G

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#15 Mystic-G
Member since 2006 • 6462 Posts

if they stopped pre-owned sales it would mean the end of retail games, gameshops keep themselves open with pre-owned sales,as they actually make very little off the first sale, and with digital distribution only accounting for 15% of games sales, if gameshops colllapse, the publisher will have no distribution outlet except digital download which isn't enough to keep every publisher afloat.delta3074
Are you aware retailers make $12 for every new copy sold? The phrase "very little" is an overstatement.

Retailers will just continue to sell new games.

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VideoGameGuy

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#16 VideoGameGuy
Member since 2002 • 7695 Posts
if they stopped pre-owned sales it would mean the end of retail games, gameshops keep themselves open with pre-owned sales,as they actually make very little off the first sale, and with digital distribution only accounting for 15% of games sales, if gameshops colllapse, the publisher will have no distribution outlet except digital download which isn't enough to keep every publisher afloat.delta3074
pretty sure the walmarts and best buys of the world sell more games then all the gamestops combined.
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Vambran

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#17 Vambran
Member since 2005 • 1921 Posts

Gamestop would not be happy but since i buy my games off amazon brand new i could care less.

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shutdown_202

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#18 shutdown_202
Member since 2005 • 5649 Posts

Yes. And this is most likely where we're heading to next gen.

I have a feeling current gen consoles will be the last new systems i purchase. From then on ill probably go back and buy a Saturn, Japanese PS1/PS2 and stick to my PC. I just cant see MS/Sony/Nintendo selling games online for < $3, like steam.

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Mystic-G

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#19 Mystic-G
Member since 2006 • 6462 Posts

This is what I think is going to happen....

Next generation, consoles are going to finally implement digital distribution on PSN and XBL. This alone will fuel publishers to push a new standard upon consoles which will likely be DRM or serial-key based. Why then? Because places like Gamestop currently hold a lot of clout over game sales and if they feel threatened they can choose what not to sell in their stores as a defensive manuever to make them think twice. Currently, publishers can't afford that to happen. With digital distribution making such a massive rise in PC gaming, the same is likely to happen with consoles so publishers would feel more comfortable using this method just in case Gamestop were to do this.

There will be no backlash as long as multiple big publishers take this step at near the sametime. Gamestop wouldn't be able to afford banishing so many games from their stores. Gamestop makes enough money off new gamesales, how do I know? Because places like Walmart and Best Buy don't sell games to lose money, they're obviously making profit if they keep games on their shelves.

If PC gaming can survive without used game sales, so can consoles.

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bbkkristian

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#20 bbkkristian
Member since 2008 • 14971 Posts
They can't just make a law saying stores can't sell used games. That has to be done by a higher authority like governors or Congress (US).
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Santesyu

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#21 Santesyu
Member since 2008 • 4451 Posts

I can't imagine any "severe consequences" that would come from ending used sales.

Raymundo_Manuel
if there wasn't a such thing as used games and tomorrow it got wiped off the market completely that is when the GOLDEN era of Piracy will begin.
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Mystic-G

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#22 Mystic-G
Member since 2006 • 6462 Posts
[QUOTE="Raymundo_Manuel"]

I can't imagine any "severe consequences" that would come from ending used sales.

Santesyu
if there wasn't a such thing as used games and tomorrow it got wiped off the market completely that is when the GOLDEN era of Piracy will begin.

It's called transitioning.
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Mograine

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#23 Mograine
Member since 2006 • 3666 Posts

if there wasn't a such thing as used games and tomorrow it got wiped off the market completely that is when the GOLDEN era of Piracy will begin.Santesyu

And you know this how?

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Ontain

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#24 Ontain
Member since 2005 • 25501 Posts
[QUOTE="Vaasman"]

I've never really understood why used games are so controversial. So when people sell used toys, books, records, movies, computer parts, furniture, etc., it's no biggie, but with used games, it's an epic ****storm? What's so different about used games?

VideoGameGuy
Mostly because the industry has no idea what they're doing. The high cost of development is what's killing the industry right now. You shouldn't have to sell millions of millions of copies just to make your money back. That is a horrible business model in a especially picky industry.

i agree. they should have followed movies. movies can cost just as much or more to make but they make it up with volume. and they are still pretty low cost compared to games. games development costs have gone much higher but without the lower price and as much mass market. sure we have a games that sell millions every year but there are tons of movies that do that.
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SakusEnvoy

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#25 SakusEnvoy
Member since 2009 • 4764 Posts

Last I checked, PC gaming was still alive.

Mystic-G

As PC gamers regularly point out, the very generous Steam deals help to push forward digital distribution. But with higher average game prices than PC games, and slower price falls, the used and rental game markets are essential for expanding the audience of console gamers willing to experiment with lesser known games. There are still ways to monetize used games for publishers, like Online Passes. That's the right way to go, in my opinion. But my number one concern, as a gamer, is not being able to pick up games that out of print. Digital distribution of retail games is still quite unusual on consoles, and until such point that it is offered more consistently new games will inevitably eventually go out of print. And then those older games will exist in limbo, since no one will be allowed to sell them or transfer them, the audience of people who've tried out the game can never grow. Old franchises will just simply die.

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Santesyu

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#26 Santesyu
Member since 2008 • 4451 Posts

[QUOTE="Santesyu"]if there wasn't a such thing as used games and tomorrow it got wiped off the market completely that is when the GOLDEN era of Piracy will begin.Mograine

And you know this how?

because I know lots of people who don't pay 60 plus for a game with no other alternative people would just learn to rip them somehow if it doesn't go DD. Either that or people would just leave the gaming market which most doesn't have aproblem with if it comes to do that, I know I dont.
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Mystic-G

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#27 Mystic-G
Member since 2006 • 6462 Posts

[QUOTE="Mystic-G"]

Last I checked, PC gaming was still alive.

SakusEnvoy

As PC gamers regularly point out, the very generous Steam deals help to push forward digital distribution. But with higher average game prices than PC games, and slower price falls, the used and rental game markets are essential for expanding the audience of console gamers willing to experiment with lesser known games. There are still ways to monetize used games for publishers, like Online Passes. That's the right way to go, in my opinion. But my number one concern, as a gamer, is not being able to pick up games that out of print. Digital distribution of retail games is still quite unusual on consoles, and until such point that it is offered more consistently new games will inevitably eventually go out of print. And then those older games will exist in limbo, since no one will be allowed to sell them or transfer them, the audience of people who've tried out the game can never grow. Old franchises will just simply die.

WELL... if PSN and XBL decided not to abuse console gamers I would imagine prices would drop some for digital distribution on consoles. This being due to the lack of a retailer taking $12 profit, unless Sony and MS decided they wanted another $12 for each digital copy on top of their $12 royalties which wouldn't be right at all. Digital distribution on consoles would be quite healthy if done right.
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Cruse34

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#28 Cruse34
Member since 2009 • 4468 Posts

I can't see it ever happening, but there might be a large fight over it in the years to come. And it could push DD more then pirating

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Fizzman

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#29 Fizzman
Member since 2003 • 9895 Posts

Ohh no all the seventeen year old HS kids will have to find new job......SAVE DA GAMESTOP. Let it burn. I use Steam and i can' resell any of my old games, but im ok with that.

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sayyy-gaa

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#31 sayyy-gaa
Member since 2002 • 5850 Posts

[QUOTE="Santesyu"]if there wasn't a such thing as used games and tomorrow it got wiped off the market completely that is when the GOLDEN era of Piracy will begin.Mograine

And you know this how?

Look, imo, $60 is too much to spend for every single game. In fairness though, game prices haven't gone up too much. When I was a kid, I remember paying $56 for TMNT on the NES. That said, I buy used games almost exclusively save for SF games. If ALL games cost $60, would probably contibute to the golden age or just find a more palatable hobby. I have hundreds of games, and most of them were bought off ebay or from Gamestop bargain bins. No way would I have hundreds of games if they were $60 a pop. I'm pretty sure I'm not alone.
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Raymundo_Manuel

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#32 Raymundo_Manuel
Member since 2010 • 4641 Posts

[QUOTE="Mograine"]

[QUOTE="Santesyu"]if there wasn't a such thing as used games and tomorrow it got wiped off the market completely that is when the GOLDEN era of Piracy will begin.sayyy-gaa

And you know this how?

Look, imo, $60 is too much to spend for every single game. In fairness though, game prices haven't gone up too much. When I was a kid, I remember paying $56 for TMNT on the NES. That said, I buy used games almost exclusively save for SF games. If ALL games cost $60, would probably contibute to the golden age or just find a more palatable hobby. I have hundreds of games, and most of them were bought off ebay or from Gamestop bargain bins. No way would I have hundreds of games if they were $60 a pop. I'm pretty sure I'm not alone.

Just because a game is "new" doesn't mean it's going to cost $60 forever.

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Human-after-all

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#33 Human-after-all
Member since 2009 • 2972 Posts

[QUOTE="sayyy-gaa"][QUOTE="Mograine"]

And you know this how?

Raymundo_Manuel

Look, imo, $60 is too much to spend for every single game. In fairness though, game prices haven't gone up too much. When I was a kid, I remember paying $56 for TMNT on the NES. That said, I buy used games almost exclusively save for SF games. If ALL games cost $60, would probably contibute to the golden age or just find a more palatable hobby. I have hundreds of games, and most of them were bought off ebay or from Gamestop bargain bins. No way would I have hundreds of games if they were $60 a pop. I'm pretty sure I'm not alone.

Just because a game is "new" doesn't mean it's going to cost $60 forever.

Oh yeah, it drops to $50, 4 months later.

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Mystic-G

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#34 Mystic-G
Member since 2006 • 6462 Posts

[QUOTE="Mograine"]

[QUOTE="Santesyu"]if there wasn't a such thing as used games and tomorrow it got wiped off the market completely that is when the GOLDEN era of Piracy will begin.sayyy-gaa

And you know this how?

Look, imo, $60 is too much to spend for every single game. In fairness though, game prices haven't gone up too much. When I was a kid, I remember paying $56 for TMNT on the NES. That said, I buy used games almost exclusively save for SF games. If ALL games cost $60, would probably contibute to the golden age or just find a more palatable hobby. I have hundreds of games, and most of them were bought off ebay or from Gamestop bargain bins. No way would I have hundreds of games if they were $60 a pop. I'm pretty sure I'm not alone.

Here's the thing. Publishers make zero dollars off used game sales. So guess how much they care if you can only afford to buy their game used?

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Mograine

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#35 Mograine
Member since 2006 • 3666 Posts

Here's the thing. Publishers make zero dollars off used game sales. So guess how much they care if you can only afford to buy their game used?

Mystic-G

Apparently people thinks piracy will somehow prevent publishers and developers from delivering games, and they will magically stop developing new methods to fight piracy because second hand sales no longer exist :|

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tomarlyn

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#36 tomarlyn
Member since 2005 • 20148 Posts

[QUOTE="sayyy-gaa"][QUOTE="Mograine"]

And you know this how?

Mystic-G

Look, imo, $60 is too much to spend for every single game. In fairness though, game prices haven't gone up too much. When I was a kid, I remember paying $56 for TMNT on the NES. That said, I buy used games almost exclusively save for SF games. If ALL games cost $60, would probably contibute to the golden age or just find a more palatable hobby. I have hundreds of games, and most of them were bought off ebay or from Gamestop bargain bins. No way would I have hundreds of games if they were $60 a pop. I'm pretty sure I'm not alone.

Here's the thing. Publishers make zero dollars off used game sales. So guess how much they care if you can only afford to buy their game used?

Take this example..... I really wasn't sure if I would like Shadow Of The Colossus even after the demo, so I got it used for £10. Now its one of the greatest games I've ever played and will be buying The Last Guardian & Team Ico collection new upon release. If it wasn't for the used game market I may never have bothered taking the plunge, now they've secured my future custom.

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Mograine

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#37 Mograine
Member since 2006 • 3666 Posts

Take this example..... I really wasn't sure if I would like Shadow Of The Colossus even after the demo, so I got it used for £10. Now its one of the greatest games I've ever played and will be buying The Last Guardian & Team Ico collection new upon release. If it wasn't for the used game market I may never have bothered taking the plunge, now they've secured my future custom.tomarlyn

The exact same thing has been said for piracy. Yet, everyone likes to frown upon it. How does this work then?

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Bigboi500

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#38 Bigboi500
Member since 2007 • 35550 Posts

I agree with what he says. With no used games, a lot of people will just stop buying them, or at least limit themselves to a lot less games overall, which will bring sales down big time.

Just look at the vast amounts of games that cost $60 + tax with very short sp campaigns and online multiplayer. Those that don't play a lot of online multiplayer will not want to pay that much money for one game that they can beat in a day or two. Even with re-play value it's still not worth that much money to those kinds of players.

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Mystic-G

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#39 Mystic-G
Member since 2006 • 6462 Posts

Gamestop is part of the reason why games are $60

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Mograine

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#40 Mograine
Member since 2006 • 3666 Posts

I agree with what he says. With no used games, a lot of people will just stop buying them, or at least limit themselves to a lot less games overall, which will bring sales down big time.

Just look at the vast amounts of games that cost $60 + tax with very short sp campaigns and online multiplayer. Those that don't play a lot of online multiplayer will not want to pay that much money for one game that they can beat in a day or two. Even with re-play value it's still not worth that much money to those kinds of players.

Bigboi500

Then those guys should start actually supporting companies that make single player centric games instead of buying them used, so that the companies wouldn't have to put focus on multiplayer to get at least past the break even point, don't you think?

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tomarlyn

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#41 tomarlyn
Member since 2005 • 20148 Posts

[QUOTE="tomarlyn"]Take this example..... I really wasn't sure if I would like Shadow Of The Colossus even after the demo, so I got it used for £10. Now its one of the greatest games I've ever played and will be buying The Last Guardian & Team Ico collection new upon release. If it wasn't for the used game market I may never have bothered taking the plunge, now they've secured my future custom.Mograine

The exact same thing has been said for piracy. Yet, everyone likes to frown upon it. How does this work then?

If you're trying to suggest that buying a used game legally is equivlalent to piracy then I have to lol, sorry :P. At least the retailer can put my money towards shipping in more games from publishers.
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Bigboi500

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#42 Bigboi500
Member since 2007 • 35550 Posts

[QUOTE="Bigboi500"]

I agree with what he says. With no used games, a lot of people will just stop buying them, or at least limit themselves to a lot less games overall, which will bring sales down big time.

Just look at the vast amounts of games that cost $60 + tax with very short sp campaigns and online multiplayer. Those that don't play a lot of online multiplayer will not want to pay that much money for one game that they can beat in a day or two. Even with re-play value it's still not worth that much money to those kinds of players.

Mograine

Then those guys should start actually supporting companies that make single player centric games instead of buying them used, so that the companies wouldn't have to put focus on multiplayer to get at least past the break even point, don't you think?

I'm sure they do support them by buying them new. The problem is, games like Demon's Souls are few and far between thanks to the focus on online mp games. As others have said, if gamers like that can't get access to the other kinds of games by renting them or buying used, they'll just likely just find alternative ways to play them. At least with used games as an option, they're still supporting the game industry, even if it is in a lesser form than buying them new.

Besides, how do you know they'd use that extra money to make sp centric games? As greedy as some of them are, they'd probably just take their money and continue to pump out clones of generic, mp centric games because they know a bunch of not-so-well-informed consumers are gonna keep buying what's popular, even if they don't make great strides to add value with each new game.

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Ontain

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#43 Ontain
Member since 2005 • 25501 Posts

[QUOTE="tomarlyn"]Take this example..... I really wasn't sure if I would like Shadow Of The Colossus even after the demo, so I got it used for £10. Now its one of the greatest games I've ever played and will be buying The Last Guardian & Team Ico collection new upon release. If it wasn't for the used game market I may never have bothered taking the plunge, now they've secured my future custom.Mograine

The exact same thing has been said for piracy. Yet, everyone likes to frown upon it. How does this work then?

sorry but piracy and buying used games are not at all related regardless of what devs and publishers would have you believe.
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Mystic-G

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#44 Mystic-G
Member since 2006 • 6462 Posts
[QUOTE="Mograine"]

[QUOTE="tomarlyn"]Take this example..... I really wasn't sure if I would like Shadow Of The Colossus even after the demo, so I got it used for £10. Now its one of the greatest games I've ever played and will be buying The Last Guardian & Team Ico collection new upon release. If it wasn't for the used game market I may never have bothered taking the plunge, now they've secured my future custom.Ontain

The exact same thing has been said for piracy. Yet, everyone likes to frown upon it. How does this work then?

sorry but piracy and buying used games are not at all related regardless of what devs and publishers would have you believe.

They have one thing in common. Neither give the publisher or developer money.
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Mograine

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#45 Mograine
Member since 2006 • 3666 Posts

sorry but piracy and buying used games are not at all related regardless of what devs and publishers would have you believe.Ontain

Both let you play a game, neither gives money to the gaming industry outside of the retailers.

I see plenty of relations when talking of effects on the industry.

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JohnF111

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#46 JohnF111
Member since 2010 • 14190 Posts
The only news is good news, it just means retail prices will fall sooner than usual as people waiting for price drops tend to favour the second hand market...
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Mystic-G

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#47 Mystic-G
Member since 2006 • 6462 Posts
The only news is good news, it just means retail prices will fall sooner than usual as people waiting for price drops tend to favour the second hand market...JohnF111
Just like PC gaming. lol
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#48 Bigboi500
Member since 2007 • 35550 Posts

[QUOTE="Ontain"][QUOTE="Mograine"]

The exact same thing has been said for piracy. Yet, everyone likes to frown upon it. How does this work then?

Mystic-G

sorry but piracy and buying used games are not at all related regardless of what devs and publishers would have you believe.

They have one thing in common. Neither give the publisher or developer money.

They do get some money, because that used copy was once new, and someone bought it originally. You don't know if that person that bought that game used would have bought it new, or just not bought in the first place. Like I said in my post above, buying used still supports the industry because buying used from Gamestop for instance. That company sells new games along with used ones, and buying used from that store still does support the industry. With no other option but to buy used, if you take that away from some people, they just will quit buying games all together, so overall sales will drop instead of increase. Less interest in gaming can't be a good thing no matter how one tries to spin it.

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#49 Cruxis27
Member since 2006 • 2057 Posts

Digital download anyone?

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Bigboi500

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#50 Bigboi500
Member since 2007 • 35550 Posts

Digital download anyone?

Cruxis27

Until broadband internet becomes available universally, that really isn't a vialble option to be the biggest and only way to sell games.