Episode 496: Two Becomes Three

This week starts with two hosts and mysteriously turns into three without any warning. It’s scary. Otherwise, this week’s Gaming Flashback is the source of scorn from the hosts: Spore. Yes, SimEverything was SimDisappointing. Listen in and find out why.

The news for this week includes:

  • Xbox head tweets support of PS4/Xbox One crossplay on Fortnite
  • Warhammer: Vermintide 2 has already sold 500,000 copies
  • Writer Drew Karpyshyn leaves BioWare for a second time

Let us know what you think.

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Wallets Shrink, Used Game Market GrowsWallets Shrink, Used Game Market Grows

Over the last year we’ve seen developers scrambling to find “value add” features to new game purchases. Their goal is to convince the customer to buy new instead of used because developers don’t see a penny from a used game sale. While GameStop sees 48% profit margins from the used game market developers struggle to stay floating in the industry.

for-saleThis is not the fault of GameStop and their 48% profit margins because they’re only getting 7% to 20% profit margins (say analysts) on new game sales. As someone that’s run a game store online, if you’re getting 15%+ on a new game you’ve got some great hookups in the distribution channel or are buying in huge quantities.

Buying games in huge quantities to build profit margins can be a huge mistake in this industry. Gamers are fickle little creatures and they’re going to buy their top tier games for a few weeks and then sales will drop significantly. No retail chain wants to purchase a thousand copies of GTA IV (only as an example) and sell seven hundred over the first few week to be stuck holding onto a few hundred copies when the dust settles. Now you’ll have to put them on sale to get them out of the store because the hardcore gamer have already done their shopping and you’re not going to get any price protection if you’re not a major player in the industry.

Why take 7% profit margins when you can get 48% on a used game? The gamers don’t seem to mind because they’ll trade in a used copy of a sports title like Madden to save $5.00 on the latest franchise release. Gamers will buy Fable 2, beat it in a week and rush to the store to get the “most for their dollar” before the game gets stale and buy-back prices drop like a stone. Why not rent Fable 2 and save yourself $50.00? Of course, renting pisses off developers as well because they see no additional revenue.

While the economy struggles and consumers fight for their jobs, the entertainment side of life continues to grow. People would rather “cocoon” in their homes playing video games and watching movies on their brand new HD television because it takes them away from the low points of the economy if only for a few hours. History has shown us trends in entertainment during the down points of economies, it’s natural to want to get away for a bit.

But, consumers want to play these games on the cheap because their job may not be there tomorrow. Saving $5.00 knowing the store just took the title in for half the price doesn’t bother you; $5.00 in your pocket is better than in their pocket right? The fact that they just pocketed upward of 40% on the game doesn’t matter to you — it’s all about your bottom line!

While we’re bargain hunting during the recession developers are going to try and up sell you to a new copy of the game. If that means giving you special game items and features with a “one time code” upon purchase, it will be up to you to decide if it’s valuable. All the while GameStop will lock out the game industry from selling used games because 42% of their overall gross profit is from used game sales.

You, the consumer, benefits from a slightly cheaper game, bargain bin fire sales and additional game features if you do choose to buy new. The economic down turn is a great time to be a gamer, as long as you remain employed.

Episode 337: GlamourEpisode 337: Glamour

The podcast is back, with a healthier Jonah joining Jordan. No Dan or Paul however.

The news:

  • Hitman Project reportedly canceled, Square Enix responds
  • Alienware Steam Machine priced ‘very competitive’ with PS4, Xbox One
  • Nintendo must pay royalties for every 3DS following court ruling
  • Sony announces PlayStation Now for streaming older games
  • Gabe Newell reacts to Xbox One and Steambox comparison

Question of the Week: “What are you most looking forward to in 2014?”

Episode 482: NaptimeEpisode 482: Naptime

This particular episode becomes a little sleepy as one host actually falls asleep during recording. Guess which one. After last week’s episode only partially uploaded, the Gaming Flashback for Okami is actually an insert, too.

The news items include:

  • It’s a big week for new game releases on Switch, PS4, Xbox One, and PC
  • Lego Dimensions comes to an early end after two years
  • Why Xbox One backward compatibility took so long
  • Ex-BioWare says Anthem is an example of EA’s monetization plans

Let us know what you think — without falling asleep first.