Why don't publishers try to compete in used sales?

[S_SienZ]

As titled. Been wondering this for a long time now. Head hurts a bit at the moment so I'll do this in point form.

1. Better direct, immediate feedback from the end user that traded in their copy.

2. Cost of reproducing "extra content" like the Catwoman thing in Arkham City is well, near zero I imagine, since it's just data they already have. Would lead to more flexible pricing schemes depending on whether the second hand buyer wants things like that or multiplayer.

3. The money goes where it should be going. I don't know about other people, but I can't help but feel that places like Gamestop are in a way getting unjustly enriched by simply being a middleman. Also, this new source of revenue / increased sales could be accounted for and make it easier for publishers to be more willing to sell for a cheaper price.

There's one obvious obstacle to doing this: infrastructure. But I honestly don't think that Activision or say EA couldn't afford to set up some official stores with trade-in services.

 

[Something Amyss]

I don't know about other people, but I can't help but feel that places like Gamestop are in a way getting unjustly enriched by simply being a middleman.

Do you feel the same way about used record stores?

 

[S_SienZ]

I don't know about other people, but I can't help but feel that places like Gamestop are in a way getting unjustly enriched by simply being a middleman.

Do you feel the same way about used record stores?

Yes.

I get that it's a service of convenience that they provide, but I don't see how publishers aren't able to compete and even do a better job than they are.

 

[jthwilliams]

Actually, I was just thinking why havn't libraries started lending games. They lend books, movies, cds, dvds, audiobooks, newspapers. Explain to me 1 reason why lending xbox games would be unlike what they already do.

 

[Something Amyss]

Yes.

Woooooooooooooooooooooooooooooooow.

Well, you're consistent, I'll give you that.

 

[Something Amyss]

EDIT for double-post. Browser freaked on me.

 

[Something Amyss]

Actually, I was just thinking why havn't libraries started lending games. They lend books, movies, cds, dvds, audiobooks, newspapers. Explain to me 1 reason why lending xbox games would be unlike what they already do.

Some libraries do lend games, actually. Mine doesn't, but friends I've spoken to get games from their local public libraries.

 

[S_SienZ]

Yes.

Woooooooooooooooooooooooooooooooow.

Well, you're consistent, I'll give you that.

Note that I'm not saying they're evil or have to go. Unjust enrichment happens a lot in today's world anyway and to a certain extent is subjective.

I'd prefer if we focus more on "why publishers aren't trying to get a slice of the used sales" pie.

 

[Dastardly]

There's one obvious obstacle to doing this: infrastructure. But I honestly don't think that Activision or say EA couldn't afford to set up some official stores with trade-in services.

That's why, but only partially. If EA gets into the game of used sales, they have to compete on price with Gamestop (and others). Gamestop can lower its prices far below EA, because Gamestop carries all kinds of retail goods from all manner of manufacturers. EA can't compete on price, because it will always have more costs -- Gamestop has only the standard retail overhead, while EA would have that plus development costs.

You can't compete with someone that doesn't have any overhead, especially if they're selling your product.

 

[Cronq]

Publishers are too damn stupid. If they supported their games with regular free DLC and added mod support, you'd be a fool to trade in your game. Used games and piracy can easily be defeated by proper pricing and added support.

 

[S_SienZ]

There's one obvious obstacle to doing this: infrastructure. But I honestly don't think that Activision or say EA couldn't afford to set up some official stores with trade-in services.

That's why, but only partially. If EA gets into the game of used sales, they have to compete on price with Gamestop (and others). Gamestop can lower its prices far below EA, because Gamestop carries all kinds of retail goods from all manner of manufacturers. EA can't compete on price, because it will always have more costs -- Gamestop has only the standard retail overhead, while EA would have that plus development costs.

You can't compete with someone that doesn't have any overhead, especially if they're selling your product.

I agree with you on that. But I really think as publishers, if they want to, they'll be able to come up with exclusives that other retailers won't which might be able to level or at least make the playing field closer, a point which substantially differentiates the used games scene with used records.

Bear in mind that the used game sales game is heavily reliant on who the 1st buyer chooses to trade in to. If the publishers manage to offer exclusive perks over their competitors, it should be do-able.

 

[jthwilliams]

Publishers are too damn stupid. If they supported their games with regular free DLC and added mod support, you'd be a fool to trade in your game. Used games and piracy can easily be defeated by proper pricing and added support.

Much like the music industry that fought so hard against digital distribution that they nearly killed themeselve when itunes,zune and amazon have all prooven that digital distribution is actualy more proffitable than cds and tapes, the game industry is run by publishers who are too fixed in their ways. Big businesses hate to change, they want to be able to continue making money doing exactly what they've been doing for years. Their first reaction when something new comes along that looks like it threatens there way of doing things is to try to crush it rather than try to adapt even when adapting would make them far more proffitable.


This is why no one over 50 should be alowed to be an executive. The attitude of being set in your ways and hating new things is very much a old man (old person sorry) thing.

 

[krytorii]

Lets assume that EA decides to open a bunch of retail outlets.

So then, in order to compete with all the used game stores I'll need 2 EA stores in my town, possible 3, otherwise half the people in my town will be spending an extra half an hour by bus to get to these EA stores. They will also, presumably only stock EA games. Even if they don't, they won't have the same supply lines that other shops do.

So obviously they can't go into opening stores. It would make more sense for them to merge/take over an existing retail chain.

How else could they do it? Mail in copies? You'll need to hire staff to check these games work, offer enough to make the effort of posting worth it and presumably offer some EA game related content. But hey, don't the stores already offer reward points?

I honestly don't think EA will go into retail. They're publishers. Penguin, Doubleday, Warner Bros and the equivalent in other fields do not.

 

[Dastardly]

I agree with you on that. But I really think as publishers, if they want to, they'll be able to come up with exclusives that other retailers won't which might be able to level or at least make the playing field closer, a point which substantially differentiates the used games scene with used records.

Bear in mind that the used game sales game is heavily reliant on who the 1st buyer chooses to trade in to. If the publishers manage to offer exclusive perks over their competitors, it should be do-able.

Let's say they do. They open an "EA Store" (Or publisher of your choice). It sells EA games... maybe some hardware, but that requires deals with the console makers. But mostly EA games. The store also trades and sells used EA games.

Now EA has the cost of keeping a physical store, the cost of maintaining inventory of whatever non-EA stuff they sell, advertising/mailing/otherwise branding this new store, hiring personnel...

Sooner or later, EA decides, "This is too much headache. We'll create a separate branch of the company to handle this -- basically contract it out." After awhile, the folks running that branch say, "There's a reason people go to Wal-Mart more often than plain-old-grocery stores, and it's because they can get all their stuff in one trip, instead of going to one store for each thing. We should sell other games, etc., too."

And then EA just invented Gamestop.

=OR=

EA says, "This sucks. Let's not have a physical store, let's do it by mail." And someone else says, "Screw that, let's do it digitally."

And then EA just eliminated the secondhand market.

I'm not mocking you. I'm just saying that we're headed toward one of these two endings. Either the cycle restarts, or the Digital Age helps us sidestep it completely. If software is no longer a physical good, they no longer have to worry about dealing with the issues that surround physical goods. Chief among them, secondhand sales.

 

[Callum Methven]

I don't know about other people, but I can't help but feel that places like Gamestop are in a way getting unjustly enriched by simply being a middleman.

What about used car sales? to my mind there is no diffrenece between used car sales and used games (sub in spare parts for DLC)

 

[Aeshi]

I don't know about other people, but I can't help but feel that places like Gamestop are in a way getting unjustly enriched by simply being a middleman.

What about used car sales? to my mind there is no diffrenece between used car sales and used games (sub in spare parts for DLC)

Unless you can name a game that requires regular DLC installations to continue functioning and/or a car for whom all maintenance is completely optional then I'd say the two are completely different.

 

[jthwilliams]

Lets assume that EA decides to open a bunch of retail outlets.

So then, in order to compete with all the used game stores I'll need 2 EA stores in my town, possible 3, otherwise half the people in my town will be spending an extra half an hour by bus to get to these EA stores. They will also, presumably only stock EA games. Even if they don't, they won't have the same supply lines that other shops do.

So obviously they can't go into opening stores. It would make more sense for them to merge/take over an existing retail chain.

How else could they do it? Mail in copies? You'll need to hire staff to check these games work, offer enough to make the effort of posting worth it and presumably offer some EA game related content. But hey, don't the stores already offer reward points?

I honestly don't think EA will go into retail. They're publishers. Penguin, Doubleday, Warner Bros and the equivalent in other fields do not.

Not even slightly. They could easily compete in the used game market by taking back their games by mail for coupons which are good for buy new and used EA games off their website. Heck they could get creative and use it to promote their digital market which they really want people to use. Give trade back value in MS Points or PSN credit.

They could even include a tradeback envolope in the box the game comes in. If you trade it back in by such and such date they will give you 1600 MS points.

 

[krytorii]

Lets assume that EA decides to open a bunch of retail outlets.

So then, in order to compete with all the used game stores I'll need 2 EA stores in my town, possible 3, otherwise half the people in my town will be spending an extra half an hour by bus to get to these EA stores. They will also, presumably only stock EA games. Even if they don't, they won't have the same supply lines that other shops do.

So obviously they can't go into opening stores. It would make more sense for them to merge/take over an existing retail chain.

How else could they do it? Mail in copies? You'll need to hire staff to check these games work, offer enough to make the effort of posting worth it and presumably offer some EA game related content. But hey, don't the stores already offer reward points?

I honestly don't think EA will go into retail. They're publishers. Penguin, Doubleday, Warner Bros and the equivalent in other fields do not.

Not even slightly. They could easily compete in the used game market by taking back their games by mail for coupons which are good for buy new and used EA games off their website. Heck they could get creative and use it to promote their digital market which they really want people to use. Give trade back value in MS Points or PSN credit.

They could even include a tradeback envolope in the box the game comes in. If you trade it back in by such and such date they will give you 1600 MS points.

There's a slight problem here, it'd have to be origin-only, because otherwise the MS points and PSN credit could e used on other games. Plus, it's a hell of a lot easier for me to pop into a store on the way home/out and trade in something than it is to seet up an account and mail stuff, although the free post envelope would make it a lot more attractive.

 

[jthwilliams]

Lets assume that EA decides to open a bunch of retail outlets.

So then, in order to compete with all the used game stores I'll need 2 EA stores in my town, possible 3, otherwise half the people in my town will be spending an extra half an hour by bus to get to these EA stores. They will also, presumably only stock EA games. Even if they don't, they won't have the same supply lines that other shops do.

So obviously they can't go into opening stores. It would make more sense for them to merge/take over an existing retail chain.

How else could they do it? Mail in copies? You'll need to hire staff to check these games work, offer enough to make the effort of posting worth it and presumably offer some EA game related content. But hey, don't the stores already offer reward points?

I honestly don't think EA will go into retail. They're publishers. Penguin, Doubleday, Warner Bros and the equivalent in other fields do not.

Not even slightly. They could easily compete in the used game market by taking back their games by mail for coupons which are good for buy new and used EA games off their website. Heck they could get creative and use it to promote their digital market which they really want people to use. Give trade back value in MS Points or PSN credit.

They could even include a tradeback envolope in the box the game comes in. If you trade it back in by such and such date they will give you 1600 MS points.

There's a slight problem here, it'd have to be origin-only, because otherwise the MS points and PSN credit could e used on other games. Plus, it's a hell of a lot easier for me to pop into a store on the way home/out and trade in something than it is to seet up an account and mail stuff, although the free post envelope would make it a lot more attractive.

To your first point, the question was could EA compete in the used game market without opening stores everywhere not could they have everything thing go their own way. I think they would be more competative by giving you MS points or PSN credit then if they forced you to use origin which is unpopular. If you had the choose between getting MS Points and getting in store credit at gamespot, I would be tempted by the MS Points. If my choice was only an origin credit or in store credit at gamestop, I'm personally less interested.


To your second point. By this logic Amazon can't compete with Walmart and netflix can't compete with blockbuster.

So I think we can see where that goes.

 

[Pearwood]

They can, it's just easier for them to whine about legitimate business practices than it is to actually do anything.