UK developer David Braben from Frontier Developments believes smaller development studios are in the worse position when it comes to re-sale of “pre-owned” video games. Since a developer only gets their cut of the profits when a game is sold new, pre-owned titles allow gamers to play games without paying the developer for the effort.
This also hurts larger publishers, but they’re able to recover because of the sheer volume of games and game titles. One idea David had, was to code each game with a unique license key like a PC game that gamers must enter before playing. This would kill the ability to re-sell video games back to the market for others to buy at a cheaper price (translation: better value).
The future shows a higher degree of downloadable games, which cannot be re-used or sold back to the market, but for now, developers have to deal with pre-owned video games cutting into their profit. Presumably you could have a great game with smaller sales and a high degree of resale in the pre-owned market.
Problem with this take on development? Besides large scale video game sellers like GameStop making 80% profit margins on resold games (rather than a 10-15% on new), gamers want a way to make back some of their money on expensive titles. When you’re paying $60 for a game and you beat it in a week or two, you want to resell it so you can invest in a future title.
My theory… make games more affordable so we don’t feel gouged on the price. We may decide to hold on to it longer and tell our friends about it. A good game reference and a reasonable price will increase sales every time. Don’t try to solve pre-owned problems when the problem is the publisher and the industry making huge game prices.
(Thanks, Kotaku)
Hi Guys, Good Episode. I’m sorry I haven’t posted in a while as I have been busy with my newborn son William. I like that you have now expanded to include other game types other thank video games. To Paul’s infamous comment Story is Game Play’s Bitch… I HATE THIS… I really only like games that have stories or enable me to make a story… I hate games that are pointless grinding. I need progression otherwise I stop paying attention and generally stop playing. I still play game from the 90s because back then they had good stories. As for the Steam Machine’s suspend feature, I like the fact they recognize the risk and disable the feature, nothing would piss me off more than suspending the game and expecting it to start back up and finding that the session had expired/become corrupt. It would be great if they can fix it but I don’t think that would change my buying decision. As for the steam machine, I don’t mind the idea if the boxes are cheaper and outperform my gaming PC… otherwise they don’t really make much sense. If I want to play my PC games on my TV I would connect my PC to the TV. Otherwise… keep recording and I’ll keep listening.