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)
Nintendo considering changing
@Aussie Diablo III preorders not getting refunded from GAME
This sucks major balls. Aussies already get the short end of the stick, due to significantly higher prices. I pity them, they deserve better.
@Dark Souls multiplayer
I think that another game that uses a similar concept is TrackMania Nations. Granted, in TMN you only see the ghost of the other players, they don’t affect the game too much.
@QOTW:
Hmm, I don’t really play free-to-play games. I did play a free game (“Red Alert: A Path Beyond”) though.
Good news, Herr: Blizzard is accepting those preorder refunds from GAME. Just send them your receipt, and you can purchase it from Blizzard minus the deposit.
Hi Jonah, Jordan, Paul and Dan;
I love the show and really enjoy listening to your buys perspective on the gaming industry.
I was wondering if you guys could discuss the recent announcement for an Enhanced Edition of Baldur’s Gate I & II and their plans to make Baldur’s Gate III.
Do you think they will actually make this worth buying since you can get both of the Original games gog.com rather cheaply. I’m sure these Enhanced Editions will be around $60. I can’t help but want to keep my expectations low on this even though I do love the BG series.
Some awkward silence there… I think Dan was a bit tired during recording.
@QOTW: I would say hands down Team Fortress 2, it is just so fun. I have clocked in 265 hours and the only reason I have stopped playing it is because I know every nook and cranny in it. It also gets kind of boring when you’re constantly at the top of the leaderboard :P.
I have recently started play the MOBA Super Monday Night Combat. It’s great, I’ve played 78 hours of it, but it only has 1 mode and 3 maps as of yet. There isn’t much else to do but master the different classes. I think it also made me hate MOBA games just because there is rarely a team environment. Everyone gets pissy whenever their team loses, and blame it on their teammates even if they were the worst player. I don’t know, in TF2 I always had that feeling of being in a huge team cooperating, and if you died it was your fault.
I would also like to note that I have never spent a penny on free-to-play games.
@PlayAlterEgo: I got kidnapped and killed on my way to school…