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

Bethesda’s Hines: Don’t Shoehorn MultiplayerBethesda’s Hines: Don’t Shoehorn Multiplayer

Bethesda Softworks vice president of marketing Pete Hines is critzing publishers and developers who shoehorn multiplayer into their games that doing such a thing is “a waste of time” and advises, “Just drop it, don’t bother…it’ll make for a worse game.”

In an interview with Next Gen BIZ, Hines states that using online multiplayer as a tool to prevent used game trade-ins and rental simply doesn’t work, and robs developers of valuable man-hours.

Hines stated:

“(People ask us) for a game like Skyrim or Prey 2, why doesn’t it have multiplayer? Well, our question is always the opposite when we talk to a developer. If you’re doing multiplayer, why are you doing multiplayer? What are you trying to accomplish?

“If you’re doing it just to check a box or because every other publisher says you’ve got to have multiplayer, then just drop it, don’t bother, it’s a waste of time, a giant distraction and it’ll make for a worse overall game.

“We want the best game possible. If that’s a singleplayer game that’s 15 to 20 hours, then make that! Don’t waste your time on features that don’t make the game better.”

The Elder Scrolls V: Skyrim and Prey 2 are two Bethesda properties that will lack multiplayer, but one of the tools to encourage games to keep both games will be downlodable content and, even more important, good communications with the game communities and nurturing the fandom for both games.

Episode 388: Off To E3 AgainEpisode 388: Off To E3 Again

It’s the last episode before the start of E3, which both Jonah and Paul will be attending, as Paul fantasizes about having some fancy footwear for the conference.

The abbreviated episode includes the following news:

  • The $100 headset uses controversial electric shocks to make you a better gamer
  • Oculus unveils final model of the Rift, due early 2016
  • Xbox One exclusives Crackdown, Scalebound and Quantum Break will skip E3 for Gamescom

Question of the Week this time is, “Do you prefer a silent or voiced protagonist?”

Episode 355: E3 Swag Bag Part 3Episode 355: E3 Swag Bag Part 3

This is the final week of the E3 Swag Bag giveaway, which includes a The Sims 4 bag, a The Sims 4 T-shirt, The Sims 4 sunglasses, and some other goodies like a Dragon Age: Inquisition T-shirt, a Farming Simulation 2014 cow, and so on. Paul is unavailable this week but Jordan’s wife Jennifer guest hosts, with the famed Kingdom Hearts being the Gaming Flashback.

This episode also includes the following news items:

  • Report: PS Vita no longer available at major retailers
  • No women allowed at upcoming Hearthstone tournament
  • Lindsay Lohan files suit over GTA V allegedly using her likeness
  • Sources: Crytek UK’s staff no longer going to work
  • Riot closing League Of Legends’ public chat

And once again, the Question of the Week: “What was your biggest takeaway from E3?”