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How to kill gamestop and protect game devs

polycounter lvl 18
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Thegodzero polycounter lvl 18
Here is my little brain fart/saopbox...

How Digital distribution can kill the brick in mortar stores like gamestop with out killing game devs.
The key is resale. Take a systems like steam where you can buy games digitally, and allow people to sell their game back at percentage of the rate that the game is going for at that time. They key is to then put the "used" games back up for sale but in a "used" games section where they can't be sold back. The used games would be cheaper than the new but be more than the amount payed to the previous owner.

An example would be a gamer buys a game for $60 and finishes it and then sell it back to steam for $15 a 25% return. Steam then adds the game the used section for $30. Steam makes $60 off the game still and provides a used game service that doesn't hurt the devs.

Another example would be a gamer buys a game for $60 and keeps it for a year then sells it back to steam, but the price on new copy's has dropped to $30 so gets $7.50 back for it. Steam then adds the game to the used section for $15. Steam still makes $60 off the game.

/end pointless soapbox

Replies

  • Ben Apuna
    I'm thinking It's strange to think of anything digital as used. There's no wear and tear like what you would get with physical copies. What difference would there be in the eyes of the person owning the used digital game over a "new" copy other than it being cheaper? I think Steam already does and alright job discounting many older games.

    I really would prefer legislation banning used game sales or better yet forcing the exact same ratio of profits going to the developer as if it was a new sale.
  • Heart_Murmur
    Not exactly the same plan, but I believe Goozex provides a away for consumers to trade without companies like Gamestop taking a huge portion of the profits.
  • 00Zero
    what would be the difference between a "used" game and a new game in that case? i mean, if its all digital. theres no difference. its not like theyre gonna give you a copy with a few bits missing or a lost manual.

    well, then again, i guess if the amount of "used" games is exactly the number of games users sell back to steam then it would make sense.
  • 00Zero
    you know what, people just need to do what they did years ago before we had giant game store chains to buy used games. they should find somebody that has the damn game, give them money, and take the game home.
  • commador
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    commador polycounter lvl 14
    Speaking of Gamestop, is anyone else tired of their exclusive deals? "If you don't pre-order or buy a title from us, you don't get all the content" Lame.
  • slipsius
    how does steam still make 60? wouldnt they make 75?

    but this is flawed. why buy a new copy at all? its cheaper to get a used copy and then just delete it after.

    if anything, they should take a hint from runic and sell the games cheaper... get rid of the hard copies all together, then just sell every game online through a secure program like steam, but sell them for 30 or 40 bucks. each copy only costs them something like 7 bucks to make anyways. thats why so many companies give such a good discount to employees (example, EA.. every game is 20 bucks that they make)
  • JacqueChoi
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    JacqueChoi polycounter
    Or borrow/trade games with friends.


    I think Blizzard and Valve have it right again with this one. Each copy of the game is linked to a Log-in ID to Steam or Battle.net.

    No reselling because it's linked to that account.


    Selling your account is a different matter.


    :)
  • Steviant
    I know used game sales is a touchy subject in the industry, and I really don't want to cause offense, but I don't think that there's anyone on polycount that hasn't bought second hand books/records/clothes/electrical equipment/consoles/cars/bicycles/furniture/god-the-list-could-go-on-forever from somewhere in their lifetime. I buy a lot of my games second hand, same with music and books. Yeah, the creator isn't making money off that sale, but then they've already made money from that game/cd/book when it was sold to the original purchaser. Honda doesn't expect to make any money off a '94 Civic sold to its fourth owner by its third owner, I can't see why games should be treated any differently.
  • Thegodzero
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    Thegodzero polycounter lvl 18
    00zero,
    A "used" game can't be resold, so its half the price of a new one. It's used because the money from the sale will never see the hands of the developer.

    I guess another way to look at it is, two types of game tiers. The first tier is full price games that can be returned for a fraction of the cost. The second tier would be games that are half price and can't be returned. Games returned would move into the second tier.

    slipsius,
    Thank you for catching that! brain farts with brain farts in them!

    So i guess the better example would be first sale 60, returned for 25, and resold for 30. they make 65, and the gamer if he buys it again only spends 65...
  • Ben Apuna
    Two tier system might work, I don't know if it would kill Game Stop though. Am I wrong in thinking that "the problem" with used game sales is really limited to console games and not games for PC?, which is what Steam sells.
  • JordanW
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    JordanW polycounter lvl 19
    steviant you're perspective on using second hand cars, bikes, consoles, equipment falls apart when you look at the issue that those all suffer some sort of wear and tear. This makes the used copy lesser value, a used game is identical to the new game.

    There's always someone who want's the "new" product experience, the new car, the new bike everything works nothing's broken or worn down. With games they don't need to buy a new one to get that experience which means those people you would typically rely on actually buying the new product don't necessarily do.
  • Thegodzero
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    Thegodzero polycounter lvl 18
    Yes but if steam does it first and people like it, then they might start to expect it from others. We all know in the back of our minds that the next set of consoles are going to be based around a digital download system for games(this too might kill stores like gamestop). So if a system like this were put in place by steam and blizzard then Sony, MS and Nintendo might use it too for their consoles.
  • 00Zero
    but dont you guys love the feeling of peeling that fresh seal off the cases and then sniffing the open package? it smells so good!
  • low odor
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    low odor polycounter lvl 17
    Removing games from physical media completely solves the problem. Once that happens, gamestop will head down the same path blockbuster is heading down.
  • Snacuum
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    Snacuum polycounter lvl 9
    Steviant wrote: »
    I know used game sales is a touchy subject in the industry, and I really don't want to cause offense, but I don't think that there's anyone on polycount that hasn't bought second hand books/records/clothes/electrical equipment/consoles/cars/bicycles/furniture/god-the-list-could-go-on-forever from somewhere in their lifetime. I buy a lot of my games second hand, same with music and books. Yeah, the creator isn't making money off that sale, but then they've already made money from that game/cd/book when it was sold to the original purchaser. Honda doesn't expect to make any money off a '94 Civic sold to its fourth owner by its third owner, I can't see why games should be treated any differently.

    Bravo, I see somebody has some sense. Not that I don't support game devs wanting to sell products new and make a profit. Used sales have been around a lot longer than the game industry, and those other industries have survived. 90% of my games library is used, not because I want to hurt the industry, but because my desire to play and enjoy so many of the games made each year is bigger than my wallet.

    Having said that, I do not agree with the tactics the likes of gamestop use, (like new releases used copies at 90% of the price and forced on the customer in place of a full new copy.) At the same time I know there is very little profit margin in new games sales, and staying competitive with larger department stores where the prices can be dropped and profits made elsewhere is tricky.

    The flaws in the strategy of the first post have been discussed, I personally dislike digital distribution. I'd happily work for a company that publishes it's titles through the likes of steam, but as a consumer I would not buy it that way. I prefer hard copies and b&m stores, I don't like that everyone desires its death especially with all the layoffs and shut-downs of studios of late. Do we need all of those people who run those stores out of a job too?
  • ZacD
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    ZacD ngon master
    I like how steam has the 4 packs, but I wish i could get a deal on buying games without dealing with that hassle.

    I don't get how "buying used digital content" would work, maybe offer a buy back but I dunno.
  • Thegodzero
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    Thegodzero polycounter lvl 18
    Snacuum,
    Don't you think that there might be a few less layoffs if it was more likely that a game would return a profit? With less used games being put in front of new ones more new games would be sold. The safer the investment the more investors. The more investors the more the industry grows.

    00zero,
    thats why i buy movies, same joy at a fraction of the cost...
  • Snacuum
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    Snacuum polycounter lvl 9
    No I'd think there'd be less layoffs if the publishers weren't so greedy.

    But it's ok if you guys don't agree with me since I don't currently work in the industry, I don't deserve a soapbox of my own. But I do work casually in retail: selling games. (new ones, my store has no used titles.) But they don't sell very well, something about being too expensive even though they are at RRP.
  • DoomiVox
    Used games experience wear & tear, an un-opened/un-played game (disc) has a greater likelihood of lasting and not burning out after the first 30 days.
    Online distrubution or some kind of direct download from distributors is the best solve for this issue and makes the most sense (if we don't have to deplete physical resources to deliver the ability to play a game to someone, why should we?)
    With data storage being as versitile as it is today, I'm really surprised that games are still sold as discs with packaging and shipping costs etc.
    Seems to make more sense to just sell "memory cards" (a portable hard drive for your console or whatnot capable of storing many games) and sell downloads of the games that include serial numbers and whatever kind of data duplication protection is needed (include a download inventory that is automatically kept track of at store locations or online to insure nobody is downloading things for free.)
    I do have feelings on the whole game developers wanting the profits off of used game sales but it'd take too long to explain even though my logic is simple so I'm keeping my opinion on it out.
  • Snacuum
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    Snacuum polycounter lvl 9
    As I said earlier, I have a distaste for digital distribution. If game all go that way, they'll lose at least one customer. Call be old-fashioned, orthodox, or whatever, I want my games in a box always and forever.
  • Marine
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    Marine polycounter lvl 19
    I'd rather they just reduce the price of digital copies, mw2 is £40 on steam, but £30 on amazon, same thing with the downloadable games on 360, they need to be matching resale prices to combat used sales. they'll lose a bit more per copy in exchange for more sales
  • Andreas
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    Andreas polycounter lvl 11
    commador wrote: »
    Speaking of Gamestop, is anyone else tired of their exclusive deals? "If you don't pre-order or buy a title from us, you don't get all the content" Lame.

    Don't they call that good business? Personally I like those deals...better than nothing. Maybe Gamestop are the bad guys in the US, but here in the EU they rock. They are always 5 euro or more cheaper than GAME. Also their console deals are better.
  • Target_Renegade
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    Target_Renegade polycounter lvl 11
    I can see both sides, but to make digital distribution worthwhile the prices are going to have to come down by at least a third. When amazon are selling the same game, as a physical copy, and cheaper, it doesn't make sense buying it digitally. The devs are losing some money to the used games market, but that doesn't really make a valid argument to take the market away completely. It seems quite lame when you can't let people sell a game that they have played and bought, so that someone else can enjoy the experience. However, the profits on used games shouldn't be so high for the retailer, maybe employ a minimum purchase requirement? The games that are in this argument are the recent bestsellers, I don't sell my games, purely on the basis that I might want to replay them in the future. Nowadays, the games players have changed since when I started on the ZxSpectrum, back then though, piracy was still as big a percentage as it is today I think.
  • Keg
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    Keg polycounter lvl 18
    I don't see how used games on steam would make any different to Gamestop and such. Majority of used sales are on console games and not PC releases. There's also the factor that not everyone has high speed internet or is even wanting to download 8 gigs for a game when they can just run down to the corner, get the same game on a disk and have the game playable in minutes instead of hours. Also, some people don't have unlimited bandwidth internet either. Most of Canada's isp's all have download limits so downloading a game isn't always the most welcome experience.
  • PixelMasher
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    PixelMasher veteran polycounter
    I like what gears 2 did as an incentive, a code inside the new copy's box to unlock the flashback map pack, so if you wanted those maps you had to buy it new, or pay to get them as DLC. just a nice incentive to buy new.

    honestly I think the way gamestop pushes pre-orders and used down your throat is disgusting, pre order or we wont have enough copies to sell. especially when there is a best buy within the same block for me with hundreds of copies of the game without having to pre order shit.

    I used to work for EB so i know its not the employees fault, they are bullied into pushing that crap. from my 3 years of working for them before i got a industry job I learned a lot about their weasle tactics. like only sending 10 non pre order copies of the game so it makes people pre order from them next time. and sending a memo to tell employees to lie/explain that to customers to "protect them from dissapointment"
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