I strongly agree with what Shilkanni posted 5 posts up. And I will highlight these two points:
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Shilkanni said:
Two people who never were going to buy the game for $50 might end up buying it at a half-off sale resulting in 1 sale.
Price drops are a marketing strategy people. You aren't "robbing" the company of anything. It pisses me off when I see people who don't understand how a free market works and claims it to be the opposite of what it is. IN the above scenario that was two people who were NOT going to buy. By dropping the price point, it resulted in more sales which is more money/profit. Consumers are NOT OBLIGATED to buy anything. Businesses however, are obligated to meet the demands of the consumer. It isn't the consumers job to figure out a way to meet the price point. IT IS THE
JOB of the business to find the price point the consumer can meet.
How the hell does someone not grasp that? I understood that concept that in the 2nd grade.
If publishers were worried about this, they would drop their price point to make Used game distrubutors profit margins smaller. But obviously, it isn't worth doing it because they are obviously bringing in enough.
I'd also suggest that any game where the average copy is resold four times after the initial purchase it might just be a terrible game that no-one wants to keep, and they're lucky they sold a million units.
First off, the whole 80% thing Cynical Skeptic was quoted with is so freaking rediculous it can't be considered rationally. If it rained fish twice a week it would solve world hunger but it holds no real bearing on reality.
I bring up this point because it important to stress that if a game dev/publisher is making games you don't want to keep, there is a problem and it isn't with the consumer. I recently considered taking GTA4 to Gamestop to trade in for credit. Found out it was worth 4 dollars. So, I kept it. I mention that because most of the time, the tade off credit isn't worth it. Additionally, buying a new recent release as opposed to a used recent release at gamestop saves you 5 dollars. 5 dollars ensures you are the only person to have played that copy. In all honesty, Gamestop's incentive for dealing in used games just isn't that inticing overall.
This isn't a plague in gaming, its like this side thing that should be and is usually met with apathy across the boards. Not once have I heard of a dev or a publisher complain about used games sales costing them money. Even they dare not take that head on. Piracy at least people can see a point there but used games is nonsense.
rembrandtqeinstein said:
I guess I should clarify the position a bit. Gamestop and every other retailer do take risk when they stock a game. The risk is that the game won't sell and their shelf space will not go to a game that would have sold.
My main problem is both the aggressive way Gamestop pushes used games and their whole incentive system to keep money away from the publishers. They give more money for trade ins if you agree to spend it on used games. That completely negates the argument that used game sales support the new game market.
Honestly, I don't see Gamestop as being aggressive on this topic. It is just a ploy to get you to bring your butt back into their store. And my trade ins are worth the same amount even if I tell them I were to promise to spend it all on used games. GTA4 is worth 4 bucks no matter what I spend that 4 bucks on. If you are referring to the 10% off thing, then am I really suppose to get exctied over $0.40?
The trick here is a legal version of bait and switch. They bait you with the trade in system and once you are there, well you are a gamer. You will probably spend money. Especially, since you just got credit. Which title looks better? One that has been out for 6 months used (obviously, someone didn't like it) or the new one that came out last week that everyone is talking about? This tactic does support the new game market.
Most gamers have a limited amount of time and money to spend on games. Once you recognize those limits you see that Gamestop is playing a zero sum game against the publishers for those game budgets. If Gamestop buys games used, marks them up 300% then of course they will market that aggressively to maximize profits. They contribute nothing to investing in or creating games but they extract value from the market that those creative works generate.
Then more developers need to read your first sentence if it is truly that wide spread. You market towards your audience. Even by this standard, Gamestop is simply employing a smarter business strategy. Competative marketing is what I see here. The publishers offer you nothing if you buy their game and do not like it. Except the line "maybe you will like our next title, buy it." Gamestop will help you get something that you do like. So that your entire purchase was not in vain. Plus, they are aware there is a small market for used games.
The problem occurs because Gamestop is the de-facto game specialty game store monopoly. The non-specialized options are Best Buy, Walmart and maybe Target but their selection is made by throwing darts at a game list. So instead of going back to publishers to invest in more games money goes to Gamestop stockholders.
Gamestop isn't a monopoly. I have about 4 video game stores to choose from. The only problem is, Gamestop is the only one that offers gamers decent deals through trade in. One store will charge you 40 dollars for Mario Party 3 and claim it as a collectors item. IMO very few SNES games should sell for the same price as PS3 games.
If there was an option to buy direct from publishers that would be great but publishers have agreements not to compete with their retail distribution partners. I wish some big publishers would just say screw it and take the hit of cutting off Gamestop and selling games directly.
IMO that is the last thing this industry needs. Publishers already think they rank just below God. (I don't think you get egos like that by constantly losing money in a business field.) These are the same people who will force you to buy a new copy of a game you already bought if you use up your 5 installs you are allowed and not feel guilty about it in the slightest. Yet, here I have people telling me I am suppose to feel bad that I bought a game I was not fully convinced on when it came out. My last game I bought used was inFamous and I am glad I didn't buy it when it came out as it is the epitomy as to why moral choice in games are bad. Moral choice took an otherwise GREAT game there and tainted it for me. Making inFamous "alright". Thus to me inFamous was worth the 25 dollars I paid for it. It is not a game worth 50 bucks. Mass Effect, Dead Space, hell even GTA4 was worth 50 dollars. (And I didn't care for GTA4. But it was worth 50 bucks.)
As for Steam, I don't care for it. I have been denied to play games enough as it is and I don't even have that many games through Steam. Maybe if they can make it more stable and dependable. I don't like buying a game and then having someone say I can't play it on my day off for 3 random hours. I would prefer that system where you get games in the mail compared to steam.