Pre-owned sale tactics are pushing devs to digital

[OmegaFenix]

CLOUD GAMING EUROPE: Gaikai CEO says high street schemes make download business even more attractiveGame publishing and development firms are finding sanctuary in digital distribution platforms because boxed retail is aggressively perusing pre-owned sales schemes, industry veteran David Perry has said.
Speaking today at the Cloud Gaming Europe event in London, Perry said “companies like Gamestop are getting so good at selling used games, getting better and better at squeezing revenues, that they are encouraging publishers to go digital.”
Pre-owned has long been a divisive subject in the games business. Retailers, which take all profits from selling second-hand games, say they are an essential business pillar. Publishers and developers, who make nothing from such trades, say the practice hurts revenues.
Andrew Oliver, the co-founder of Blitz Games Studios, last year went as far as saying that the significant pre-owned businesses was a bigger problem than content piracy.
Speaking at a packed conference hall at Cloud Gaming Europe, Perry told attendees that digital distribution has become the logical destination for publishers as the stakes get higher and the margins tighter.

And he believes retail knows it. He said that GameStop is now taking digital distribution very seriously, acquiring net-based vendors such as Kongregate.

Source

Ten Characters

 

[Weasley]

Source

Ten Characters

then they will see a massive decline in income. and they will mown about piracy.

 

[Necuno]

then they will see a massive decline in income. and they will mown about piracy.

False.

Because if it was so then how exactly does Indie developers get away with digital distro. Second owned doesn't give back to the developer, it only "refunds" the original buyer. Seriously if you can't afford the game at R700 then either save or wait till it's R500.

 

[Wyzak]

Because if it was so then how exactly does Indie developers get away with digital distro. Second owned doesn't give back to the developer, it only "refunds" the original buyer. Seriously if you can't afford the game at R700 then either save or wait till it's R500.

Why pay R500 when you can get it for R200 or R300? The price value that people are willing to pay differs vastly. I think they are making a huge mistake if they think killing off the second hand market is going to boost their sales volumes. Look at how quickly Steam became the biggest digital distributor, mostly because of its awesome specials.

It always amazes me that at at time when the world is in massive financial crisis mode that companies just continue as if nothing ever happened and as if everybody is just rolling in the cash.

 

[Nimatek]

But that's just it Wyzak, companies aren't going on with business as usual. They are changing their retail models to increase revenues because less and less people purchase the games through their channels.

Yeah I agree that R700 is a bit steep for a game, but they also have budgets that need covering. Sadly it is a broken wheel, they need income and we need lower prices. Perhaps things will change at some point in time, but not for the foreseeable future.

 

[OmegaFenix]

False.

Because if it was so then how exactly does Indie developers get away with digital distro. Second owned doesn't give back to the developer, it only "refunds" the original buyer. Seriously if you can't afford the game at R700 then either save or wait till it's R500.

+1

Why pay R500 when you can get it for R200 or R300? The price value that people are willing to pay differs vastly. I think they are making a huge mistake if they think killing off the second hand market is going to boost their sales volumes. Look at how quickly Steam became the biggest digital distributor, mostly because of its awesome specials.

It always amazes me that at at time when the world is in massive financial crisis mode that companies just continue as if nothing ever happened and as if everybody is just rolling in the cash.

And what about the people who spend years working on a title? They have families too, if the studio closes they are left without a job. Like it or not, capitalism is the only way out of a financial crisis. It always amazes me that people expect charity from every angle, even with luxury items like games. Like Prophet said, if you can't afford it a R700 then wait till it goes cheaper.
The reason steam is so popular is that every sale brings in capital for the devs. Sure steam takes a cut, but no matter how you sell it somewhere someone is always going to take a cut. Which is why EA is pushing Origin, their own platform not 3rd party cost, more capital. And the Moochers whine about "corporate" greed they all comfortably forget that big corporations like EA, Activision, Apple, Microsoft all employ thousands upon thousands of people and if they dont make money those people will be let go which only adds to unemployment.

So if you can't afford the game at R700 wait till it goes budget, but no its easier to pick it up pre-owned but you don't think of the ripples caused by the pre-owned market.

 

[Weasley]

+1



And what about the people who spend years working on a title? They have families too, if the studio closes they are left without a job. Like it or not, capitalism is the only way out of a financial crisis. It always amazes me that people expect charity from every angle, even with luxury items like games. Like Prophet said, if you can't afford it a R700 then wait till it goes cheaper.
The reason steam is so popular is that every sale brings in capital for the devs. Sure steam takes a cut, but no matter how you sell it somewhere someone is always going to take a cut. Which is why EA is pushing Origin, their own platform not 3rd party cost, more capital. And the Moochers whine about "corporate" greed they all comfortably forget that big corporations like EA, Activision, Apple, Microsoft all employ thousands upon thousands of people and if they dont make money those people will be let go which only adds to unemployment.

So if you can't afford the game at R700 wait till it goes budget, but no its easier to pick it up pre-owned but you don't think of the ripples caused by the pre-owned market.

ya but you forget that selling games second hand gives the gamer money to buy the new games on release. (if every1 waited till they could afford it the dev wont get the money near release but only year or 2 latter when they all lost there jobs already.)

 

[OmegaFenix]

ya but you forget that selling games second hand gives the gamer money to buy the new games on release. (if every1 waited till they could afford it the dev wont get the money near release but only year or 2 latter when they all lost there jobs already.)

If you trade your game you 5 times out of 10 end up getting something pre-owned so you dont have to play anything in. With game sales last year reaching into the billions it is clear that there are people who will gladly buy a game (even a piece of shit like MW3) on release. So everyone wont wait, so no risk of stagnation due to everyone waiting for it to go budget. Only those who are 1) Unable to afford or 2) too cheap to pay full price will wait.

 

[DenSweeP]

I don't think it will make any difference. Many who buy 2nd hand do so because they can't afford to any other way, so now they simply won't buy any games and those who could afford new games from their 2nd hand sales, might buy less new titles by being more selective, knowing they can't regain money from selling their games.