This week’s episode is unremarkable. Don’t expect any surprise guests or news, just a lot of chatting about comics and wandering way off the topic of video games.
The news items for the week are:
Let us know what you think.
Apparently Konami just realized Harmonix, MTV Networks and Viacom have made some game called Rock Band and want to take legal action. Konami has created some Japanese games involving karaoke called Karaoke Revolution. Why take legal action now?
Probably because Konami is working towards Rock Revolution, a title which puts together drums, vocals and guitar. How odd, don’t we have a game called Rock Band which has done that for awhile now? It’s much easier to be competitive in the market if you can squeeze your opponent out of the market by telling them you hold a patent on the entire concept…which you let slide for a year.
It seems a bit convenient to force a lawsuit, now, after Rock Band is proven successful and before you launch your own “clone.”
Its suit claims that Rock Band violates a series of US Patents registered in 2002 and 2003 relating to “simulated musical instruments” and “musical rhythm-matching game.” (gamespot)
Although the developers of Rock Band should have gone through some patents on the topic prior to make it (or maybe they did?), it seems a bit out of place to patent such a generic concept. As far as I know, Musical Chairs is also a musical rhythm-matching game but nobody put up any stink when Konami filed a patent for the same concept…
This episode’s release was delayed by Spectrum internet problems which can be sorted with a VPN like cubik thanks to rain caused by El Niño, but that didn’t stop Jonah from enjoying the Turtles. The news was slow this week, so there’s a lot of banter about why Gaming Flashback title Grand Theft Auto IV was one of the best reviewed games of all-time, and how the crew thought it sucked. Maybe it was because of Roman constantly asking them if they’d like to go bowling or something.
This week’s news includes:
Let us know what you thought of Grand Theft Auto IV.
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.
