This week’s episode was delayed due to serious Windows issues this past week. The episode was saved, however, and is 90 minutes full of discussion. The podcast deals with a lot of console hardware rumors.
The news items include:
All this and Listener Feedback.
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.
This 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.
Although we’ve found Metacritic a userful resource for game reviews, many folks have gone on a user submission rampage to discredit games that haven’t even launched yet. Their first attack was on LittleBigPlanet followed by Resistance 2, now their hitting Gears of War 2.
While Gears of War 2 has a Metacritic score of 94/100 the user’s have reviewed it to be a 3.5 out of 10, with a bright red box around the user review due to its low nature we’re sure. Although users are free to give their own honest representation of the game from their perspective, Gears of War 2, as of the review dates, hasn’t been released yet – these reviews are bogus.
This style of attack was popularized in Spore, when Amazon got nailed with poor reviews of the game because Spore’s “Draconic” DRM made people angry. However, it’s more reasonable for people to voice their opinion on a known issue with a game; Gears of War 2 review spamming is just mean.
We use Metacritic as guidance when we do our gaming podcast to understand what games are rated in the industry, but we don’t use user reviews as our main guide. There are plenty of folks out there that may utilize these reviews in more seriousness because they may feel journalists reviews are tainted by advertisers or “the man” and want the common gamers opinion.
The common gamer cannot possibility be reviewing Gears of War 2 before the title has arrived. This is bogus. Metacritic has this to say:
“My advice for our faithful users is to focus your attention on the Metascore for this game and not the thousands of user votes, most of which have been submitted before said users have played the game. This is a gaming community, and if people want to stuff the ballot box, there’s not much I can do at this point. When we upgrade the registration requirements for participation on the site in the near future, this type of thing won’t happen. We’ll post the full legitimate user reviews upon the game’s release. As always, thanks for using the site.” (1up)
So, to those looking for holiday gaming gifts, keep this in mind while you start hunting down games you’ll want to buy.
The classic 250th Episode with the original hosts – Derrick and Jennifer Schommer and Don Dunn. Enjoy the special episode when they returned to grace the podcast to celebrate the milestone.
I liked the auction house in Diablo 3 because it allowed for more gear homogenization; if my character got an item that did not help that specific class as much as another item, I could possibly auction that loot and buy a better suited one.
The 6 TFLOPS available on Scorpio make it comparable to an overclocked RX 480, so it might be capable of running Doom without dynamic resolution scaling, and consoles use low-level APIs similar to Vulkan, but we don’t know the CPU specifications.
Thank you for mentioning me!