I am going to copy/paste something I put in to another thread like this, because peopel are making incredibly uninformed arguments over the issue, and because it would take a long time for me to type out essentially the same thing.
How many people here are actually under the assumption that a game company isn't payed for it's work until a game is purchased off the shelf? That all these stores are being kind enough to hold their games on commission? The game publisher has been payed for every copy of every game you have ever seen on a shelf. Game Developers are usually payed a lump sum by the publishing company before the game is even done being transfered on to disks. It's just that simple.
Does anyone here think Valve started Steam because it was more convenient for the end consumer, or even as a means for DRM? It was started so that they receive all of the profit from games it sells through the system. It comes down not to turning a profit, but to turning MORE of a profit.
Say I have a development house, Ghettobot Games. We make a new FPS called Bad Ass Game (BAG). We shop around for publishers to release our game: That means we look for the company willing to give us the most for our game, then it becomes their burden to print the game on to disks, distribute it to national retailers, foot the bill for advertising, and ship the copies to retail outlets. Usually in these deals there is some sort of bonus for the developer if the game sells over a certain amount, and that amount is also usually the amount of copies that need to be sold before the Publisher will print to disk new copies of the game.
So let's say EA picks up BAG, they pay Ghettobot Games $10 million, and we are pretty much done with the process. For all intents and purposes, EA owns BAG. EA then contacts the retail outlets that sell the game worldwide, Walmart, Best Buy, Gamestop, Toy 'R' Us, etc., etc., and negotiate the amount of copies of BAG they are willing to purchase.
Let me repeat this for effect: All of the retail outlets BUY copies of the game.
So let's say our negotiators do a bang up job and EA gets an average of $20 a copy (an unrealistic, highballed number but it's my fake game, and it's just that damned good.). Now let's say EA distribute $5 million copies world wide, meaning EA just made $100 million, before factoring in TV commercials, Magazine articles, Payola Reviews in Magazines and Websites, and the shipping costs to get the game out to the Distribution Centers of the companies they just sold copies to.
I am again going to repeat myself for emphasis here: EA just SOLD 5 million PHYSICAL copies of the game to retailers.
From this point on, the Developer and Publisher have been payed their fair due for ALL copies of the game "In the Wild". The problem at this point is companies that are willing to buy used copies are going to order less new copies of the games if they feel they will have a decent turn around on copies, lowering the profit margin the Publisher receives.
The problem isn't that we buy or sell our USED games, it's that less NEW games are ordered by a select few companies, primarily Gamestop. Unfortunately, Gamestop has become big enough that when they decide to order less NEW games, that can be a decent chunk of change. Nothing worrying just yet, but Walmart and Best Buy both tried to implement a Used Game trade in System over the course of the last year. Both failed, but the video game companies noticed, and have been scrambling for a way to protect themselves. They are acting out of fear and aren't thinking about how the people who buy games will react.
I have been playing games a long time, and remember when online multiplayer didn't exist. I also remember when it was introduced and single player NEVER suffered for it. It was a gift or an afterthought. On occasion it was added a pay content, and if you liked the game enough it was worth it. Now it seems that if a game has no multiplayer it is panned as incomplete but if a game's single player suffers because multiplayer was added and drained funding from the main game. I personally would like to see more games that are released as single player and/or local co-op/multiplayer, and you can purchase multiplayer as DLC. Then if a company wants to give out free codes to enable multiplayer, it's value added, not robbing people of things they think they are entitled to.
It's also what game companies are talking about doing to make more money off of used copies of games. Not making up for losses for used games: MAKING MORE MONEY OFF OF USED GAMES... You know, what with them having received full compensation for all copies of the game already.