Episode 343: iPad Hot Air

This week sees the return of Paul to the crew, but unfortunately, Jordan’s voice is shot so he can’t make it a team of three. However, Jonah is happy over having a new iPad Air, while Paul laments unemployment. This week’s Gaming Flashback is Team Ninja’s classic Ninja Gaiden for the Xbox.

The news for the week includes:

  • Microsoft pulls page discussing Titanfall online preloading
  • Report: Ouya Everywhere puts games on TV, PC without the Ouya
  • EU takes on “misleading” free-to-play games
  • Castlevania: Lords of Shadow 2studio boss, “One must be blind or stupid to give it a 4/10?
  • Nintendo separates Quality of Life business unit from consoles
  • Project Milo isn’t coming back

No Question of the Week – listener questions are wide open.

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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 723: Hellblade and HelldiversEpisode 723: Hellblade and Helldivers

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The gang discusses the PC Gaming Show coming June 9, Tesla ending Steam support in its vehicles, Ghost of Tsushima being PlayStation’s biggest single-player PC launch to date (second only to Helldivers 2), Hellblade 2 developer Ninja Theory’s next game reportedly already greenlit by Xbox (and “no plans whatsoever” to close studio), Grand Theft Auto 6 publisher “highly confident” of an Autumn 2025 release window and the Resident Evil 1 Remake is in production and will release in 2026 according to a leaker.

The news includes:

  • This year’s Call of Duty will reportedly launch on Xbox Game Pass
  • Jason Voorhees slashes into the MultiVersus roster
  • Life By You is delayed again

Let us know what you think.

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