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)
@John Riccitiello steps down as CEO of Electronic Arts
Hmm, no connection to Sim City? Me thinks not. Good point about EA no longer growing. Thing is, there is that much you can grow when all you have in mind is growing. Focus on the games, not on the slide shows for the board meetings.
I agree with Jordan though, the people guilty for releasing unfinished games is the customers. Greedy EA understands signals like “I’m not giving you my moneyz”.
@Will fans back an Alice 3 Kickstarter, asks American McGee
Some folks enjoyed the game (not my cup of tea though, but I’m irrelevant), so I don’t think he’ll have any issues with raising the money.
The problem is the IP. No amount of money he’ll raise from Kickstarter will get him the IP back. He’d better start working on something else. Keep the mad girl protagonist, keep the wacky universe. Ditch the names.
@Team Meat sitting out on developing for next-gen consoles
I agree with Jonah, the barrier of entry should be close to nil, even for the sake of diversity. But hey, I guess Ouya will just have a new developer shipping games for them …
Though I wasn’t available to fill in for Paul on this episode as Jonah noted, I’m indeed excited for Brave New World nonetheless. You can be certain it is to be front and centre for discussion on the next episode of PolyCast, the Civilization series podcast that I lead and produce.