Daystar Clarion said:
There's a used market for everything.
Why should games be any different?
The reason is that the "everything" people refer to often demonstrate a number of fundamental differences that make a direct comparison useless.
For example, a great many products that are traded among consumers naturally degrade in value. A used computer is of less use than a new computer and a used car is much the same. In both cases, the manufacturer makes most if not all of their money on the initial sale. In the case of computers, one will find that the used market is relatively harmless as there exist
new computers (complete with warranty) for a pittance with some models approaching impulse buy prices. Cars work on a different system as a manufacturer can continue to make money through a well thought out warranty plan along with the manufacture and sale of replacement parts. Thus we find a number of important differences. In both examples, the product in question naturally loses value over time and in extreme cases (like computers) this is significant enough that only the most bargain conscious (or desperate) consumer would consider purchasing a used item limiting the theoretical monetary loss the various manufacturers suffer from third hand sales. In other cases we find that there are secondary markets that allow the manufacturers to continue to make money even when the vehicle is in the hands of a second party.
Film and music give us another example of a notable difference as these both offer markets that naturally cannot be impacted by second hand sales. Yes, I can watch that new movie I've been dying to see on video later and hope that I can somehow avoid all spoilers or I can watch it in a theater on a giant screen with great sound. And sure I can listen to that new album by my favorite band but it is simply impossible to compare the home listening experience to seeing the show in person. Access to secondary markets not only helps drive sales later but offers a significant revenue stream. In the case of Avatar for example, more than 1/3 of its total revenue came as a result of its run in the theater.
Many traditional works of art (painting and sculpture) also have an enormous second hand market but even here we find a built in protection. Simply put, these are inherently finite resources. Sure, I can get a
print of the Mona Lisa made but there is only one
genuine copy in the world.
It is really only in books that we find a similar comparison and we find that books have faced the very same problem. While they do degrade, the process is relatively slow. In the case of a well made hardbound book that is well taken care of, it might take
centuries or even
millenia before it is wholly devoid of value. What's worse, the second hand market in this case includes a resource that asks next to nothing of its customers and offers the opportunity to check out nearly unlimited books. But, like video games, a great many writers and publishers have decried the used market and the library as great evils working against their industry. The unfortunate thing is that they have no real option to combat it.
Thus even in this most direct case we find a difference: game developers and publishers can, relatively easily, introduce an artificial mechanism designed to ensure a used game is of less value than a new game by doing nothing more than locking out certain bits of content. They can then use this to convert the used market into a secondary revenue stream. While in many cases this means it costs
more to purchase a used game than a new game, that is largely the fault of the
consumer. I for example have rarely felt it was a sound investment to trade a copy of a game I spent sixty bucks on for, at best, $25 when the company that bought it will put it on the shelf for more than
double that.
Sure, I understand the argument that games are expensive and the used market is the only way some gamers get to play as much as they do, but most of the time I don't really
buy that answer. You save
five dollars over the price of a new game if it sells even remotely well and in doing so you deny those who made the game any share of the profits. You cut the people who made the game out of the loop all while being
gouged and
cheated by the retailer. Yes, the middleman needs his cut just like everyone else but it is rare that the middleman takes such a substantial cut.
Does the used game market hurt? I suppose one could argue that were it not for the market some games would never be played by certain players at all but this is hardly a point in the favor of the used market. After Dead Space was released, EA found that only half of the people who played the game actually bought the game new. More than a million people purchased a used copy of the game thus demonstrating they were willing to pay
something for the game in a move that effectively represents a lost sale as far as EA is concerned. When faced with sobering information like that, does it really seem so unreasonable that they would like to figure out a way to wet their beak so to speak?