When we invest in a new video game we want to feel satisfied by the content supplied in the game, we want to know we’re getting our moneys worth in the investment. Publishers, on the other hand, want us to keep our old games so they stay out of the used market. A publisher does not make a dime on used game sales. Their primary weapon to stop game sales? Downloadable Content (DLC).
1. Publishers Spend Lots on Marketing
A great example being GTA IV, hardcore gamers have a short attention span and live on hype more than physical games. Today, games live in press releases, demos, cinematic and live gameplay footage at conferences and on the web. Then, a game hits the shelves and sells millions of copies for a week or two before it’s forgotten. Publishers have marketed their game well, spent thousands on conference booths, streaming video bandwidth and rushing game demos through development and testing cycles early to get eyes on their titles.
Let’s face it, gamers that scrambled to buy Grant Theft Auto IV have moved onto the next big title or have decided to go outside for some fresh air (probably the former). Hardcore gamers consumes games like candy, sells them off for store credit and works towards their next purchase.
2. Publishers Want Loyalty
DLC breaths new life into old games, making them remain valuable for months after the hype and excitement has died. We’re now spending USD $60.00 for some of these new “current generation” game titles for a few days or weeks of excitement. Free downloadable content brings new reasons to play our “old stale” games and allows us to feel comfortable about our 60 bucks spent on a title.
Rainbow Six Vegas 2 is receiving a new “Fan Pack” for gamers to re-energize themselves about the “old” sequel to Rainbox Six Vegas. A game released in March is considered old by gamers, probably rarely played on Xbox Live anymore and needs something to keep the fans interested. This helps build loyalty to your product so the next franchise title which is released has a better chance of being purchased by your fan base because they can look forward to additional free content in the future.
3. Publishers Hate Used Games
Publishers are helping stick those games in the hands of the gamers for a longer period of time by supplying free add-on packs. Why would you re-sell your precious title back to the store when you could hold it and wait for potential DLC?
Publishers receive no revenue from the resale of a video game so it’s in their best interest to keep it out of the used markets. If there is a chance your beloved game will receive new features, at no cost to you, wouldn’t you hold off from selling it to see what’s coming?
Once a gamer has sold their title to a retail chain for pennies they’re unlikely to re-buy the title with the typical 80% markup when DLC arrives. They may opt to borrow a friends copy or rent the title rather than re-purchase it; neither fair well for the publisher in terms of revenue.
Games are expensive. Consumers must be wise to the best value in their video game titles and publishers want you to choose them for your gaming entertainment. Competition is high, profit margins are low and the market is all about sales volume. Publishers want repeat customers, people who feel their games are valuable before and after the purchase and are willing to share their loyalties with others.
Do you collect old console games, or do you sell them off to game stores and/or eBay? Would you consider holding off a sale if there was a great chance of new downloadable content?
Hi guys,been too long,ive changed career paths during and before that time.
SO the PS4 is out,what featuresdo you think will be more prominent.
make that PS4 PLANS
@Sony unveils PS4 at “See the Future”
Hey, Radeon and games DO go together. I’m using Radeon cards since 2004, and I didn’t run into any issues.
@Sony: Pre-owned game blockage “up to publishers” on PS4
Translation: we’re just going to give the publisher all the tools they need in order to block used games, so that you’ll not blame us.
Despite the fact that it’s our hardware, and we’re the guys developing those tools. Riiight …
@Fans express outrage at offline/LAN play for console version of Diablo III
Outrage? Why?
Sure, they did give PC gamers enough reasons to be upset, but outrage? I for once vote with my wallet.
@QOTW:
Heh, PlanetAVP.com, but of course.
Hey guys, long time first time 😉
@Sony unveils PS4 at “See the Future”: I really don’t understand why Paul is so upset about Sony not showing the actual console. They told us some details of the specs so what difference does it make how it looks like. Maybe it’s the PS fanboy in me speaking but I really enjoyed most the show, I like the idea of integration of the PS4 with the Vita (which I own and which is not dead as you like to say 😉 ), I like the idea of Gaikai being an integral part of the system, I like the share button, etc. The tech demos were mostly unimpressive, especially the Media Molecule Move thingy but the Quantic Dreams old man demo was amazing.
I agree that knowing the price levels of the new hardware would be nice but I understand that there are still some things to be solved on Sony part and it’s simply not reasonable to more or less guess the price at this moment.
@Sony: Pre-owned game blockage “up to publishers” on PS4: I also believe the idea of getting a re-activation code from Sony or the game publisher is a good one, if it comes to it that the games will be blocked, which I don’t think is a real threat for now. As you mentioned, the fact that people are not buying new games now doesn’t mean they will once the used game blocking is implemented. They will wait for price cuts and that’s all. It’s the same story with movie and music piracy and how much the companies are ‘losing’ due to it. They always assume that people would buy the original CD/DVD if it wasn’t available for download.
@Rumor: Microsoft revealing next-gen console in April: I wonder if we’ll see a larger difference between the XBOX720 and PS4 than in the current generation. Sony’s conference focused mainly on games while the additional content was only briefly mentioned. I don’t own an XBOX but my impression is that it puts more emphasis on that additional content (i.e. not games) and maybe the new iteration will move even more in that direction.
@QOTW:
I’m from Poland and the one magazine I’ve been subscribed to for several years has been CD Action. They always put full games on their CDs and later DVDs and the reviews and additional in-magazine materials were of high quality.
@Sony’s blind vision of future
Stayed up till 1am to watch most of the show. It was very developer centred. If you don’t get off at PC specs, it will be mostly irrelevant. PS4 has a few interesting ideas (share button) but like many others I see it as bringing up the PS to the speed of Xbox. As someone who had an Xbox 360 for 3 years before PS3, I found Sony’s console a step backwards. Crappy on-line, no integrated party system/chat and a cross-media bar which loads every time you access it. PS4 is effectively getting everything that Xbox 360 had in 2006. Overall, I have seen Sony’s future. And I am not tempted to be a part of it.
@New Xbox rumors
It would make sense for them to show it off in April. Sony jumped the gun to grab the spotlight before the E3. Now Microsoft has to make a move. I have high hopes for Xbox. So far the future generation looks a lot like yesterday. Fingers crossed Microsoft will impress us with it’s show. Otherwise, things are looking bleak for the console gaming.
@Fans express outrage at Diablo 3
Diablo 3 was out?
@Gamespy good bye
I tried to use it to play PC games on-line but it never worked for me. It became largely irrelevant when Steam appeared. Steam has it’s own integrated system which allows you to fail to play games on-line without exiting the game. Progress…
@QOTW
I started using Gamespot around 2005. Since I was poor, I would only buy games after ensuring they are good i.e reading reviews. Gamespot was a good source. Stopped me from making a lot of stupid mistakes. It is often unnecessarily harsh but I like it nevertheless. I still use it because it has a good mobile website and I can read it anywhere via 3G.
@Arthur – I wonder if the fact that you had an XBOX and I own a PS3 has something to do with the fact how we saw the conference 😉 I am excited about the specs because I don’t own a powerful PC and I’d rather had a high-end console that last 6-8-10 years than an ultra-high-end PC I need to upgrade every year or two.
I don’t know if you guys come here for post-show replies but if you do there are a couple of things I’d like to add.
@Jonah – Why do you assume that something WILL go wrong with the locking the disc to the console mechanism, if it comes, which I don’t think it will? Anyway, doing this would be like shooting yourself in the knee (with an arrow). If Sony does it and Microsoft doesn’t this is the worst think Sony could bring upon themselves. If they all do it it sounds like collusion. As far as I am concerned, I almost never buy used games and I don’t trade them in for new ones (call me sentimental… 😉 ) so I’m not that worried about all this, personally. Still, I think it’s a bad marketing direction if they are contemplating it.
@Paul – you replied that you had felt everything about the PS4 had been rushed and unprepared. I didn’t see it that way and I guess it’s just a matter of perspective. I’m 100% sure the console isn’t done yet but who cares about the hard drive size at this point? There will probably be different versions so why talk about it? Tweaking the hardware a little bit here, a little bit there is going to happen but we saw what the console can do and that’s the most important part, not the size of the drive, the number of USBs or what it comes bundled with. There will be variants and retailers will also come up with something.