Trading Used Games, Like Fraud?

David Braben, founder of Frontier Developments, says retail outlets that buy and sell pre-owned games are “essentially defrauding the industry.” Although multiplayer gaming might not be a huge threat, the single player experience in games may die out because gamers play the game quickly and resell it back to places like GameStop for others to buy.

Developers don’t get a dime when a game goes traded, many gamers will “share” the single player experience with a single copy of the game by reselling it over and over. The end result, retail outlets make a good penny for marking up old games while developers see nothing. This is really how game retail outlets survive because the margins on video games is so damn low.

The story has been heard before, developers want a piece of the action so they’re taking steps to entice people to keep the game with renewed downloadable content on old games; you can’t experience the new content without keeping the game around longer. In the world of low margin games, high cost development and short-lived story lines the solutions to this problem aren’t exactly obvious.

Braben’s idea of a solution is to offer two versions of the game, a not for resale/rental version at a high price, say $160, and a low priced version that cannot be shared (heavily DRM’ed?) for $50. In essence, gamers would no longer be able to trade in games because the idea of spending double for a game so you can resell it makes no sense to most gamers (including myself.)

Imagine, spending double for a game to be stabbed in the back at a GameStop for getting a quarter of its worth to be resold for almost MSRP again. Sounds like a great time. Not really. Although rental stores may be the exception to the rule, as it’s not a standard gamer, having them pay more for the title isn’t in their best interest as things are going fine for them now.

One major reason rental stores exist is because gamers cannot afford to buy every game they want to play. If rental stores were gone, gamers wouldn’t go out and buy ten games a quarter because they have no choice… they’ll just play less games. If gamers play less games there is a great chance they won’t experience your cool games, like Frontier Development’s Lost Winds, at all.

If a gamer never gets the chance to experience your game because they can’t rent them, you’ll find them less loyal and less likely to purchase your games in the future. As a gamer, I may rent a game because I’m not going to risk buying a product I can’t return and don’t like. However, if I do indeed love the game I may go out and purchase it for real or consider a buy on the sequel. Remember, most retail stores have a exchange-only policy once you’ve unwrapped the title (exchange for the SAME title that is.)

Rental outlets exist because they arrived to fill a demand to experience games, movies and entertainment on the cheap. The entertainment industry is full of great products and experiences but the wallet is limited in its ability to pay for said entertainment. Consider it a way to market your games to the masses and find more creative ways to draw them in and want to own it.

Market your potential sequels in the initial title, make gamers fall in love with the single player story and add a desire to purchase future titles. Give the gamer a behind-the-scenes movie in the game box or on the disc so they can feel a personal tie with the makers of the game and show them your crew is more than a simple logo; make gamers want to like your studio and share in the experience that went into making it. DVD’s have been doing this for years, what about games?

Don’t expect retail outlets and game players to feel bad for your inability to make money on your games. You made the decision to get into development so lie in the bed you made. It’s not fraud, it’s reality and consumers have been trading products for thousands of years, Craig’s List wouldn’t be where it is today if there wasn’t a constant demand for trading products to save a little cash.

(Thanks, 1up)

0 thoughts on “Trading Used Games, Like Fraud?”

  1. So I guess me buying a game and then loaning it to a friend when I am done playing is also “fraud” I guess if I sell my car, that is “fraud” against the maker of the car. How dare the original buyer not be the only owner. The idea that the maker of any product get paid when somebody sells it to another person is just ridiculous. I agree completely with the writer of this article, and David Braben is just plain wrong.

  2. So I guess me buying a game and then loaning it to a friend when I am done playing is also “fraud” I guess if I sell my car, that is “fraud” against the maker of the car. How dare the original buyer not be the only owner. The idea that the maker of any product get paid when somebody sells it to another person is just ridiculous. I agree completely with the writer of this article, and David Braben is just plain wrong.

  3. I understand his frustrations and his point of view, he’s a developer and wants to make a living at it.

    I just think that this requires a more creative way of solving the problem them consumer strong arming and brute force using the almighty (or not so mighty?) dollar.

    No, it’s not easy to solve. But neither is fusion, the invention of the combustion engine or climbing mount Everest. I just think the industry has to put their thinking cap on and find a better solution.

    I’ve run a video game retail store, it’s a rough business, extremely hard to turn a profit. You’ve got to move games quickly and in high volume to make any money.

    If you are able to make more than USD $5.00 selling a video game on the Internet you’re doing well – it’s too competitive. You can make double that in a brick-and-mortar store but you’re also paying headcount, electricity and rent too.

  4. I understand his frustrations and his point of view, he’s a developer and wants to make a living at it.

    I just think that this requires a more creative way of solving the problem them consumer strong arming and brute force using the almighty (or not so mighty?) dollar.

    No, it’s not easy to solve. But neither is fusion, the invention of the combustion engine or climbing mount Everest. I just think the industry has to put their thinking cap on and find a better solution.

    I’ve run a video game retail store, it’s a rough business, extremely hard to turn a profit. You’ve got to move games quickly and in high volume to make any money.

    If you are able to make more than USD $5.00 selling a video game on the Internet you’re doing well – it’s too competitive. You can make double that in a brick-and-mortar store but you’re also paying headcount, electricity and rent too.

  5. Jesus, for real?!?! Then shut down Goodwill, Salvation Army, every consignment store in America and ebay for reselling peoples crap ’cause Abercrombie and Fitch doesn’t get their share. This is a stupid argument. If you want people to buy and keep your product then make it worth buying and keeping!! Instead of whining and complaining, spend your time working on your trade! I work in used car sales and GM and Ford aren’t protesting at my door asking for their share of my money. What a freaking lame argument.

  6. Jesus, for real?!?! Then shut down Goodwill, Salvation Army, every consignment store in America and ebay for reselling peoples crap ’cause Abercrombie and Fitch doesn’t get their share. This is a stupid argument. If you want people to buy and keep your product then make it worth buying and keeping!! Instead of whining and complaining, spend your time working on your trade! I work in used car sales and GM and Ford aren’t protesting at my door asking for their share of my money. What a freaking lame argument.

  7. Having limited disposable income (which has in today’s economy dwindled to almost none), I simply can’t afford to buy games at their retail price, leaving me three choices:

    1. Watch the sale ads.

    2. Wait a year or thre e for the regular price of the game to drop.

    3. Buy it used.

    (Okay, so a fourth option is to receive it as a gift, but that’s not a very “proactive” solution.)

    Also, I’m a packrat and never sell back my games. I still have games that will not run on any of my computers (except maybe through DOSBox. But even that won’t help the ones on floppy disks from the late 80’s…)

  8. Having limited disposable income (which has in today’s economy dwindled to almost none), I simply can’t afford to buy games at their retail price, leaving me three choices:

    1. Watch the sale ads.

    2. Wait a year or thre e for the regular price of the game to drop.

    3. Buy it used.

    (Okay, so a fourth option is to receive it as a gift, but that’s not a very “proactive” solution.)

    Also, I’m a packrat and never sell back my games. I still have games that will not run on any of my computers (except maybe through DOSBox. But even that won’t help the ones on floppy disks from the late 80’s…)

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Episode 499: A Long DelayEpisode 499: A Long Delay

Yeah, we recorded this on April 2 and are just releasing this on April 12 — because during this time Jonah went to PAX East, then visited his mother in NYC, and things have calmed down about now. This week’s Gaming Flashback is the overly cute LittleBigPlanet… and to think it was a major topic of conversation in the early days of the podcast. How time has passed.

This week’s news items include:

  • You can play de_dust2 in Far Cry Arcade
  • No Man’s Sky coming to Xbox One later this year

You’d think that wouldn’t be enough news for 90 minutes, but that’s ok. We go off on tangents all the time.

Blu-ray Doesn’t Validate Your Console, SonyBlu-ray Doesn’t Validate Your Console, Sony

Is Blu-ray dead? Tech Sites around the Net are calling it a “death spiral” and we’re now looking at the downfall of the winning high definition format. Many non-PS3 Blu-ray players are still in the USD $200.00 range, a bit high for mass market adopters, and people aren’t planning to run out and buy a Blu-Ray player in our economic slump.

What’s the market share of the Blu-ray product? Four Percent. Blu-ray and the PlayStation 3 have a lot of battle scares after the fight with HD-DVD to “win” the format war. In the end, Sony won the battle but the war was not with the HD-DVD format, it’s with the average Joe consumer.

Does this effect the PlayStation 3? One of the up sells of the PlayStation 3 was the Blu-ray capabilities, it games and it’s an entertainment device all-in-one. It’s a great deal right?

“The advent of low cost up-sampling DVD players dramatically cut the video quality advantage of Blu-ray DVDs. Suddenly, for $100, your average consumer can put good video on their HDTV using standard DVDs. When Blu-ray got started no one dreamed this would happen.” (zdnet)

The obstacles against the Blu-ray format are huge, especially with NetFlix coming to the Xbox 360, high definition download options and licensing costs on the Blu-ray to movie creators. Blu-ray won’t die in this generation of PlayStation 3 consoles but many folks, including Apple, are pausing to see if it has any chance at all to break into the industry.

Four percent just isn’t enough to inpsire confidence.

Whining Diablo 3 Fans Want Artistic Direction ChangeWhining Diablo 3 Fans Want Artistic Direction Change

We’ve waited years for a Diablo 3 announcement. Within days the Internet is afire with Diablo 3 news, theories, previews, screenshots and dialog about the next Blizzard Game. However, there are hardcore gamers that only see the Diablo cup as half full while the rest of us are simply excited to see gameplay footage.

What’s wrong with the upcoming franchise blockbuster? Apparently the art direction is making a few people upset because it’s too much like World of Warcraft. Holy crap, isn’t that a multi-million dollar hit MMORPG developed and maintained by none other than Blizzard?

“The main objective of this petition is to show Blizzard that there’s a significant number of players that dont agree with the current art style of the game, with this petition we hope to make Blizzard ear our voices, our opinions and our suggestions and we seriously want some changes in the artistic direction of the game so it could be more coherent and familiar with the Diablo universe.” (diablo 3 petition)

Imagine the developers and artist whom have worked, in secret, for years to bring gamers the next game in a series they’ve longed for? Not “thank you for making our dreams come true,” but “oh, c’mon, you can’t make the game I want?”

You must first understand the demographic of video game fans, especially those hardcore fans who will invest their (moms) time and money into the Diablo franchise. To many gamers the world actually revolves around them and all games should cater to their needs and desires.

The gameplay footage didn’t have enough “realistic world with realistic, dirty and muddy textures” and the game has too much “over-sized and exaggerated proportions like big shoulder guards.” The gameplay footage that we’ve seen is too clean, to “cartoony” and looks hand drawn rather than dark and eerie like the other Diablo games.

What? Is this a joke?

No, the internet gives voices to many folks, some folks whom we wish would stay silent. Instead, they start an online petition which will lead to no change, but alas, we can let them pretend.

Diablo 3 looks great, has a very nice direction and I trust that Blizzard will make it work. Blizzard has three key franchises and they work hard to perfect each one with the majority of gamers being satisfied customers.

(Thanks, actiontrip)