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ZachBentley Blog

Are Used Games Hurting the Industry?

So, as it turns out, the video game industry isn't particularly fond of the used game market. That's me putting it nicely. The reality is that they loathe used games and the people who participate in their circulation are nothing short of criminals to them. In fact, game designer and hype machine Peter Molyneux has stated that he believes secondhand gaming to be worse than piracy. With ideas like "Project Ten Dollar" and the apparent DRM found in Capcom's Resident Evil: Mercenaries, it is safe to assume that his belief stretches far across the industry. On the surface, it is easy to see where these corporate money machines are coming from. They look at used games and see them as a missed opportunity; a potential dollar that went into the hands of a retailer instead of their well lined pockets. Are these publishers being a bit myopic though? Should they widen their scope before so aggressively combating such an integral part of the video game industry? I think it is important for us to look at what we gain from the selling of used games and not simply what we lose. Let's begin by taking a look at what has been deemed the "casual market." Picture for a moment your average "casual gamer." Perhaps he does sheet rock for a living. He wears flannel and couldn't care less about whether or not you consider video games to be an art form. This gentleman has a copy of Madden '10 sitting at home and finds it to be of little use to him now that Madden '11 is out. The trouble here is that Madden' 11 is 60 dollars and he can't justify a purchase like that to his wife, who has never touched a game in her life. Luckily, a big name game retailer is willing to offer him a portion off of Madden 11 in exchange for his old, dust-collecting video games. Suddenly the 60 dollar price tag isn't so daunting. This hypothetical exchange is the lifeblood of the casual market. A statistic provided by GameStop indicates that roughly 60% of trades are applied towards new purchases. Trades give gamers the capacity to buy new games; games that may have otherwise remained on shelves during the two month window that makes or breaks a new release. A two month window that used copies of new releases are hardly even available, according to market analyst, Michael Pachter. Now, allow me to present you with another hypothetical. Imagine for a moment that a hot new sequel is on the horizon and you have yet to play the first one. Would you want to play Dead Space 2 without playing the original Dead Space? I assume the answer, for most, is a resounding "hellz no." Many people don't know this but games are only in print for a couple of months and then, for the most part, never reprinted. This means the supply of new games is extremely finite. A SKU search at a local GameStop indicates that the closest new copy of Dead Space is 40 miles away. Bioshock and Oblivion are only available as part of a combo pack. Fear 2 isn't available at all. Used games allow people to jump on the band wagon. These past couple of years, Call of Duty has set a record as the largest release across all forms of media. Every year, copies of Call of Duty are sold used allowing people to try out these games at low risk. When it comes time for the big release, I believe a mixture of hype and brand loyalty are going to cause more people to bite the bullet and buy the game immediately, especially considering its holiday release window. For these reasons, I believe the industry may be shooting themselves in the foot. So, who should care about all of this? Is it just the people who buy used games? Hardly. Thanks to "Project Ten Dollar," the selling end of the equation has also become less worthwhile to the consumer. Trade in prices drop as retailers are forced to adjust the selling price of a used game in order to offset the cost of the online pass; an online pass that most used gamers have no interest in. GameStop CEO, Mike Mauler, claims that only 15-20 percent of used consumers even play their games online. Renters are also affected. That low risk trial period known as renting becomes a bit more expensive when you have to purchase a $10 pass to try a game that you aren't even sure you'll like. I imagine companies like GameFly will see a noticeable decline in profit as online passes become more and more frequent. Now, how about families who own multiple consoles? Are they expected to buy an online pass for every member of their family that wants to play the game online? What about the days when you could let your friend borrow a game? Weren't these things good publicity? Don't these things help sales? They do if you make a game worth owning. Finally, every used game that is sold is another opportunity to make a sale on DLC. Real DLC, not removed functionality DLC. Maybe that's a part of the solution here. Maybe publishers should worry less about what I am going to do with my game after I am done with it and start putting more effort into quality DLC. -Originally posted on ThePixelReview.com