Used Game Industry Just Got Bigger

[Ares]

Used Game Industry Just Got Bigger
04/21/2010 Written by Kyle P.

In a move that will certainly stir movement from GameStop and Blockbuster, 7-11 announced today that the nation-wide convenience chain will begin to step into previously unexplored territory. This move exemplifies “convenience”, in the most basic sense of the word.

Beginning in September, the 3,000 store chain will begin to sell used games. Yup, that’s right. Now when you buy your Slurpee and Mt. Dew, you can now buy a used game for $19.99 and below. The move is part of a broader partnership with Game Trading Technologies, will also deals with Best Buy, Blockbuster, GameStop, Gamefly, Walmart, among others.

“What this means to consumers is that they will have many convenient locations, most open 24/7, to buy value-priced video games,” commented GTT president and CEO Todd Hays.
“The program is available to all 7-Eleven US franchisees, and we hope to have most US stores on board by September.”

Only time will tell whether this move will work out for the franchise. What do you think? Post your responses in the comments section below.



Source: PlayStation LifeStyle

 

[SopRage]

Too bad the publishers never see a dime from this. Between Gamestop and pirating, it's amazing companies make ANY money, let alone millions of dollars.

Most of us would never go to a pawn shop; but to be honest, buying games from a 7-11 or Gamestop (used) is in the same territory.

... I should also admit I'm guilty from time to time.

 

[STRONGBADF1]

Too bad the publishers never see a dime from this. Between Gamestop and pirating, it's amazing companies make ANY money, let alone millions of dollars.

Most of us would never go to a pawn shop; but to be honest, buying games from a 7-11 or Gamestop (used) is in the same territory.

... I should also admit I'm guilty from time to time.

I had a comment but realized you said pawn shop...

 

[STRONGBADF1]

Pawn shops are great if you know what you're looking at.

I feel that If I buy some thing I should be able to sell it...as for the studios I'm sure most of them make plenty.

 

[Zaluss]

In order for used games to exist, someone had to buy them new. Its not like they aren't getting any money from it at all. Its like sharing a candy bar.

Thats why they are adding incentives like DLC to encourage new game purchases.

 

[Nemo128]

Too bad the publishers never see a dime from this. Between Gamestop and pirating, it's amazing companies make ANY money, let alone millions of dollars.

Sorry, but there is a serious flaw in your logic.

Used games had to be bought first to become used.

Also, the fact is many gamers who buy used games would not have bought the game at full price to begin with.

Lastly, the draw of the used games can lure buyers into the new game sections, which can lead to purchases of new games.

Saying they don't see a dime from used game sales is a very narrow view of the market.

 

[j_garcia]

That's like saying used DVD sales hurt the motion picture industry or buying used speakers hurts the speaker manufacturer. It is ridiculous.

 

[Whitey80]

Too bad the publishers never see a dime from this. Between Gamestop and pirating, it's amazing companies make ANY money, let alone millions of dollars.

I am in love with Gamestop/EB Games. 1)It saves me a ton in my "must own everything released" addiction. 2)I bought a good chunk of EB Games during their last large stock offering a few years ago, then dumped ALL of it about 1 1/2 or so ago....well more than doubled.....they are now my favorite investment of all time.

 

[Ares]

Take into account that if the game has DLC they still make money on the title from someone having to buy the DLC since used titles don't get the incentives as new titles. Add to the fact that DLC does not cost much to make, so if 25% of the people who own the game buy the DLC as well they are making pretty decent money.

 

[Nugu]

I would also presume that the majority of used game sales go right back into buying that new hot release as well. It sickens me every time I see a friend turn in a game they payed 60$ for for 15-30$ store credit 1-2 months later to buy the next release. Edit: especially when I'd be willing to buy it for more some times.

<-- Proud used game owner, 53 ps3 games and counting. (No, I don't own any cruddy sports titles) I've spent a average of 20$ per game and that's even including the handful of new titles I bought.


I see this venture flopping though. stuff like this is always plagued by terrible selection. The racks will be packed with sports titles and movie-games.

 

[SopRage]

Sorry, but there is a serious flaw in your logic.

Used games had to be bought first to become used.

Also, the fact is many gamers who buy used games would not have bought the game at full price to begin with.

Lastly, the draw of the used games can lure buyers into the new game sections, which can lead to purchases of new games.

Saying they don't see a dime from used game sales is a very narrow view of the market.

I'm sorry, but I can't agree.

While we both agree that the "initial batch" is obviously purchased first, Gamestop sells their used copies (usually at 50+% percent profit) at only $5-$10 less, of which the developers see not a dime. To say that gamers "would not have bought them at full price" when they're only saving $5 is a stretch. Make no mistake - we're making the middleman rich without rewarding the creator.

DLC has been bandied about as well, but it has to be understood that DLC as we're seeing it now is largely an attempt to make up for revenue lost to the Gamestop upscale-pawnshop machine. The best example might be Mass Effect 2's Cerberus Network card, which allows free content to first-time purchasers, but it's not unique. Lego Rock Band and other titles are using similar tactics to cut down on sales "lost" in the EB/Gamestop/7-11 markets.

Publishers are not going to take this lost revenue lying down. Monthly subscriptions are being talked about (the Call of Duty franchise), "free" DLC is being offered with new purchases, pay-to-play mini-games (the Battlefield 1943 experiment) are being discussed, and other experiments are just the beginning. Obviously part of this is corporate greed, but their sense of entitlement is being fueled daily by pirating and the oversaturation of the market with "used" sales.

Comparisons with used DVD or speaker sales is simply an apples to oranges comparison. EB/Gamestop is easily one of, if not THE premiere merchant in the public eye for game sales. Well over half of their sales each year are from used games. If there is a brick and mortar commercial analog for speakers or DVDs with the same market share, I do not know of it.

I say these things not with disrespect for the consumer or for any of you (us). We're all gamers who agree that $60 is an awful lot of money for what is often 5 - 10 hours of play time. On the same token, we're all connoisseurs of a medium in its infancy that deserves to see its pioneers and master craftsmen rewarded.

No malice intended and no disrespect meant. It's not popular to take the side of the distributors, but I think it's fair to look at their side of the coin as well.

 

[Nemo128]

Gamestop sells their used copies (usually at 50+% percent profit) at only $5-$10 less, of which the developers see not a dime. To say that gamers "would not have bought them at full price" when they're only saving $5 is a stretch. Make no mistake - we're making the middleman rich without rewarding the creator.

All of what you said is true but I think the above is contradictory to your viewpoint. If they're only saving $5, why would people bother buying used? Me, personally, I only buy used games when I'm saving a significant amount of money.

I went to EB to look for a game recently. A new game was $59.99 while its used variant was $54.99. I literally said out loud "Why the hell would I buy a used game to save $5?" When I look on eBay and see a used $60 game for $30 or less, I'll buy it. To save $5? And when the disc may not work (which has happened to me before) and I can't make it back to the store within the 7 day exchange period? My time is far more valuable than $5.

I see your point, but I think to some people $5 could be quite significant and that's how the used game market stays alive at B&M locations. You're right, they buy a batch of new games for $45 each and sell them for $60, then buy them back from people for $20-25 and sell it as used for $55.

While I'd rather put the $5 back into the gaming industry by increasing the real sales count, many people would not. That's also why I love it when games become best sellers. They get a bunch of games thinking they're going to turn a nice profit, and the publishers put the titles out again for $20 that they spent $20 buying back! They wind up losing money on those used games now, because they have to sell them for less!

The problem is, for it to become one of those best-seller titles, it has to make the initial sales.

 

[Nugu]

If it makes you feel any better I hate gamestop as well as far as their used games go. Almost all my used games come from ebay except when I find the rare game cheaper at gamestop - not often.