| Daniel Martinez |
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Then there's the sentiment I hear from pretty much everyone I have spoken to about downloadable games: "I want a physical copy." Even with TV shows I used to watch as a kid, I eventually want a physical copy of Beast Wars, Power Rangers, Tintin, Reboot, or more-recently: Late Night with Conan O' Brian in the same way I want a physical copy of A Link to the Past for the SNES. Yeah it's nice to have it on the Wii Virtual Console, but I want my cartridge.
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| Brad Grenz |
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It's cute to brag about adding 1.8 billion a year to the industry through trade-in value going towards new games. The problem with that argument is they sell almost 3 billion a year in used games, so that's still a net loss of about 1 billion a year for the industry. The only real beneficiary in that arrangement is GameStop, which Raines well knows.
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| David OConnor |
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yeah, I think most people would prefer to have the resalability/'touch factor' of the physical product (CD/DVD/cartridge), and also the convenience/'available everywhereness' of the digital product.
However, having the physical product is a luxury, which in the future may cost a large premium. This is also true of music, print media, movies, etc. Digital distribution of media products can be done for free, with no physical input costs (plastic/paper/etc) or manufacturing costs. There are huge physical distribution costs (and many middle men) and plenty of physical input costs for a physical product, as well as transportation. At the moment, publishers are doing really well from digital-only products... margins are WAY high. |
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| Ian Fisch |
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It's crazy to think about it, but this one chain of stores has had a huge effect on this entire entertainment medium.
Do you want to make a tight, focused, 15-hour single-player game? Forget it! You'll need to pad that out with about 20 more hours of boring fetch quests and monotonous enemy encounters, unless you want to see it back on gamestop's shelves in 3 days. Once digital distribution takes over, and gamestop is a distant memory, I predict a renaissance in overall game quality. |
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| Francisco Javier Espejo Gargallo |
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We need to stop needing physical things. It's enough with all the plastic and shit we're trowing on our planet, so we need to quit all the unnecesary shit from the sales. Gaming is one.
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| Michael Joseph |
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The only problem I have with Gamestop is that they don't have that local hobby/gaming store vibe. Their stores are just like most other sterile, inorganic/artificial, superficial, glitzy-sales-over-quality-product, consumer drone stores. But a lot of that comes with the territory when a sub-culture goes mainstream.
Something corporate this way comes... |
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| Christopher Brooks |
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The people who buy Madden 07 for $9.99 aren't a problem at all for me, as a developer.
The thing that drives me crazy is Gamestop selling a used copy of a game that just came out for $55. That's the practice I see as really destructive to game developers. The person who pays $55 for that game would have paid $60, so that's a lost sale for the developer, and the profit all goes to GameStop instead. |
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| Adam Moore |
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I'd like to point out that GameStop will not accept Madden 07 for trade as mentioned in this article. They do not accept past year sports games because they don't sell. They also don't accept used NES, SNES, Genesis, N64, Dreamcast, etc. games.
Most of the used games they stock are current games that could be purchased new off of store shelves. I take my business elsewhere because the used games that I seek can't be purchased new from Wal-Mart or even used from GameStop. |
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| Jonathan Murphy |
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The problems with retail and why it'll mostly die in America.
1.) Shipping costs continue to rise. 2.) A stigma where a growing amount of customers avoid all social contact. 3.) A growing number of customer order online. 4.) The owners are often inept, unable to adapt with the times. Create an environment of blinding hype, remove employees with new ones yearly, and pay meager wages while they make billions of dollars. |
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| Nathan Mates |
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As much as it's fashionable for those in the industry to hate on Gamestop, the larger view from outside game development doesn't agree. When popular articles like http://finance.yahoo.com/news/12-things-to-buy-used.html say that videogames are better bought used -- granted not always from Gamestop -- then the general public has decided that new games are a poor deal.
Fix the general public's perception that new games are a poor choice compared to used games, and then this discussion about Gamestop will abate. Gamestop is not the problem. It is a *SYMPTOM*. Gamestop is merely catering to the general public's perception that used games are better. Fix the root cause -- preferably by moving away from the belief that any and every new console game should be $60 -- and things will be better. |
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| Alan Youngblood |
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I've never understood why devs make such a big deal about used games sales. I always thought it was the publishers whining about it. The problem here seems to be devs not getting paid sufficiently enough, which did seem to be a current trend. I think that again goes back to the publisher.
Pure financials aside, a used market for games is beneficial to the industry because it increase public interest and thus demand for games (thereby creating more industry jobs). At a time where the game industry is so unstable like it is, it really only makes sense to embrace and work together with people who are on your same team. And in the game industry this includes developers from indie to AAA, publishers (though many have screwed things up, it's time to forgive and move on), retailers, online stores, platform creators, marketers, blogospheres, fans, gamers, consumers, and even some business folks and lawyers. Or people could choose idle banter, or perhaps pricing themselves into a corner with archaic narrow-sighted business plans like cable tv providers in the US. Do we really want that? |
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| Ed Macauley |
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Am I the only one that noticed the major discrepancy between this and the previous "used games don't hurt" article?
Today: "Company president Paul Raines draws the stats from his holster, saying that 70 percent of income that gets handed over to consumers for traded goods is immediately spent on new games. That's a $1.8 billion injection into the games industry. " July 26th: "According to GameStop, it generated $1.2 billion in trade-in credit for customers in 2011, of which 17 percent went to new sales" http://www.gamasutra.com/view/news/174825/Used_games_dont_hurt_new_game_sales_th ey_help_according_to_GameStop.php So which one is it, 70% or 17%? Someone is blowing smoke up someone else's tailpipe here. |
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| Keith Thomson |
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I do like digital downloads, but prefer not to buy anything digitally for more than $30. Usually I top out at about $20 unless it's something I know I'll enjoy. I pay $60 for things with actual discs, because I know that it's not going to vanish and stop working if someone pulls the plug on their online service. If a company did put in copy protection that wouldn't allow used sales, then I would adjust my maximum price for those games down to $30 as well, because they could stop working at any time just like a digital download.
That said, even though I trade in my old used games to buy new ones, I only buy used games if they're completely unavailable new... Thus, my used purchases are usually very old games and ones for obsolete systems. |
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| Jesse Tucker |
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Gamestop buys a game for $20, then turns around and sells it for $55. That's $35 that has been siphoned away from gamers and applied to rent and building costs, CEOs, advertising, etc.
As a developer, I don't mind if Jim sells his game to Amy. Jim would take that money and most likely (seemingly about 70% of the time according to Gamestop) buy more games with it. The way the system works now, Jim only gets a fraction of the money he would use to buy more games compared to if he had sold his game directly to Amy. It's not unreasonable to expect some sort of transaction fee/service charge for being a used game middleman, and I believe that there is a balance where making it really easy for people to buy and sell used games can help the industry. However, Gamestop takes such a large cut that it is only *barely* worth it for the buyer and seller. The developer/publisher has no say in these transactions, and I find it pretty incredible that Gamestop is telling us that they have our best interest in mind when they are buying and selling used games. |
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| Nat Tan |
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Surprising to see so many people suckered into what gamestop is saying.
The fact is: business is business, they are sensing a shift in the industry, they are now (for the time being) putting on a good face for the game production crew (us). They honestly couldn't give 2 shits about devs, it's about making sure they have enough new product to keep themselves in business. That is why this CEO is coming out to try to give us more crap that they are good for the industry, when in fact they really couldn't care how low your bonus/salary, or how much time you spent making your game, or even how revolutionary your design is; as long as you keep churning out games for them to undercut on sales. |
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| Matthew Downey |
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Stage of Grief: Bargaining
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| Matt Ployhar |
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My friend was able to loan me 6 Console (PS3/360) Games. Pretty awesome.... but I have to wonder how this isn't worse than the Piracy - as it saves someone the time of looking for a hack, and eating up my download/bandwidth. This same friend then turns around & sells them back to GameStop for an in-store credit when I give the games back to him.
My theory in short: Retail painted itself into a corner. Console games were artifically propped up somewhat by the ability of Retail to turn around & 'Re-sell' the game. (Where they make more margin). So Console games are sort of a 'Golden Goose' for Retailers. It's great for a while...but.. it also led to an artificial Console Market, Consumer dependency, Higher Cost, Higher Risk, and so forth. Now it's all starting to un-ravel. In a perfect world - every content developer (Games ISV, Book Writer, Song Artist) would be able to simply self-publish. Reap the appropriate rewards. This will be interesting to watch. IF GameStop wants to truly save themselves... I think they'll have to to somehow address the above issues. |
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| Cordero W |
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There is "one" reason why physical distribution is here to stay. It's one Nintendo pretty much understands. A physical toy is more important of a significance than a virtual one. Especially to the mainstream.
You need to go to retailers to buy food, clothing, tvs, computers, bathroom supplies, and essentially everything that is more important than video games. Placing your game online only is just a ticket to failure. Online sales are mediocre compared to physical sales of consumer counterparts. For someone like Notch, he can live off the sales of six hundred thousand sales of Minecraft. Most video games companies cannot. You need physical exposure like Gamestop, Walmarts, and other retailers to show it to the masses. Angry Birds? If it wasn't for the physical success of the iphone, Rovio wouldn't have had that many sells of their games. No PC enthusiast would have even touched a minor game like Angry Birds. They needed the help of physical distribution. So no, digital distribution is not the end all. A lot of people don't realize that video games are still a minor importance compared to a lot of other things. The investment in physical distribution is worth it if you want even a small chance at getting noticed. Because most people who aren't gamers would rather be browsing at the store rather than an online venue. And if they're online, games aren't their biggest attention. And since most game companies care about profits, I'm very sure they've researched this already and have yet to single out physical distribution as an option. They have digital alternatives so online-loving/ hardcore players can stop whining, but essentially physical distribution is still king. |
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More: Console/PC, Business/Marketing, Exclusive