Dennis Dyack, head of Silicon Knights, believes that the used and pre-played game market is killing the video game industry.
Speaking to GamesIndustry International, Dyack remarked, “From a consumer side, [in the last few years] we started seeing used games really come into fruition, and I believe that has caused quite a problem. I would argue that used games actually increase the cost of games.”
Dyack considers the ‘tail’ of games being cut, as titles lose their revenue longevity once they hit the used games shelves. “There used to be something in games for 20 years called a tail, where say you have a game called WarCraft that would sell for 10 years. Because there are no used games, you could actually sell a game for a long time, and get recurring revenue for quite a while. Recurring revenue is very key,” he said.
The Silicon Knights boss continued, referring to DLC, multiplayer expansions and other avenues developers and publishers take to maintain revenue. “Now there is no tail. Literally, you will get most of your sales within three months of launch, which has created this really unhealthy extreme where you have to sell it really fast and then you have to do anything else to get money.”
Dennis Dyack - looking smug.
Dyack sees the industry at a critical state, whereby the growth of used game sales and interest in pre-played resources could act as a catalyst for the decline of the industry.
“I would argue, and I’ve said this before, that used games are cannibalizing the industry. If developers and publishers don’t see revenue from that, it’s not a matter of hey ‘we’re trying to increase the price of games to consumers, and we want more,’ we’re just trying to survive as an industry. If used games continue the way that they are, it’s going to cannibalize, there’s not going to be an industry,” he said.
“People won’t make those kinds of games. So I think that’s inflated the price of games, and I think that prices would have come down if there was a longer tail, but there isn’t.”
Dyack’s comments may seem a bit one-sided and cynical regarding the used games market, given that many gamers see it as an entry level and access point into engaging with games that may seem overpriced at release.
What do you think of used games? Could they lead to the downfall of this beloved industry we all cherish? Sound off below and in the forums.
Source: Gamesindustry International
Related articles
Used game sales are killing single player games says industry veteran
Loading ...
I wonder if dear Mr Dyack has ever bought more than 1 car in his life. What did he do with his old car? Did he sell it or keep it in his ever-growing garage? By his logic, trading in your old car or selling it privately will lead to industry downfall for motor vehicle manufacturers…oh wait, that’s a lie.
As for DRM/DLC, car companies don’t sell you a car with 3 wheels and expect you to buy the 4th separately. They offer LUXURY extras which you can do without perfectly fine. They also do not demand that only you are allowed to drive your car. It’s your car, you can do with it what you like…and I’m pretty sure the overhead % for producing a car is more than distributing games.
Mr Dyack, the price of games forces half of us to purchase 2nd hand games – and allows the other half to purchase new games with the revenue we made from selling our old 2nd hand games.
Have a mere look at how crazy we go at gaming specials, buying up games we didn’t actually consider buying before, but due to the cheap price we jump at it.