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“Happiness can be found even in the darkest of times, when one only remembers to turn on the light.”

WizzroSupreme

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Use it or Lose it?

Are used games a friend or an enemy to the industry? For that matter, what are they to you?

At first glance, the issue wouldn't seem like a relevant topic for the next gaming generation following players' apparent victory in favor of used game support for next-gen consoles. Scores of gamers reveled in Microsoft's astounding 180 on their previous used game restrictions for the X-Box One and the PS4 earned the respect of millions through its hands-off policies towards used games sales, if the overwhelmingly positive response to its humorous E3 video reveal was any indication. All the while, the topic still won't seem to die in my mind.

One say that used games' status on next-gen systems may not be a permanent one for this next-generation for sure. Microsoft may have reversed their DRM restrictions for the X-Box One, but in light of Change.org's very own fan petition just last year to restore the One's original policies, it's obvious that the fan community is still divided on the subject. The petition further reminds us that the X-Box One's used game tech is one that's embedded in the system and only reversible or re-reversible via on-line patches. As we all know too well, patches can be like tech band-aids just as easily removed as they are applied to systems. If the X-Box One were indeed to cave into these fans' requests, the smoking gun that it is to used games could very well go off again at the expense of the used games market.

The most concise point to make in revisiting the used games controversy is the bottom line of who wins and loses from existence of used games. That question is a more complicated one than I thought originally before writing this blog and the sides of the used game battle are perhaps not as clear or obviously beneficial to gamers as you might think.

It might seem that the front-lines of the used game battlefield have to deal with players vs. companies. Looking more closely at the matter, it very much has to deal with companies vs. companies, or namely game developers vs. the used game store. Unless you're one of the select few that sell your old games yourself at garage sales or on E-Bay, you probably rely on store-chains like EB Games or Gamestop to buy and sell your used games. If you're in the latter group, you're a part only one of many more players that are reliant on a game or game related company for a middle-man when involved with game purchases.

The primary antagonists against used games are, of course, game developers. It's a known fact in the industry that they don't earn a cent past a game's initial sale and once that game copy leaves the hands of its original buyer (you), it immediately loses profitability for them. Used games most definitely hurt their business portfolios and its only natural that they seek out and crush whatever fails to aid them as a whole, whether out of purely pragmatic purposes of survival or the greed we perceive them to be. Nevertheless, they're the only people from whom games emanate from and it's either their choices that dictate what we have on the market to play.

Used games stores are most often seen as the video-game player's best friend. If you frequent them as much as me, you're as familiar as I am with the ample amount of rewards they provide to a hard-core player bent on playing near everything they see. If you're like me, you no doubt play on a limited budget and appreciate the much more affordable prices and wider selection of both newer and older/rarer games. If it wasn't for stores like Gamestop, I might've never picked up the Ratchet and Clank series for the first time or even noticed Beyond Good and Evil on its used game shelf and might've missed out on something I would've never otherwise seen in a new releases line. At the same time, used game stores are . Due to the corporate connections of this site, I don't mean to ruthlessly hound Gamestop exclusively, but if you've experience the same dilemma I've had with stores like them, then you know the dilemmas of selling games rather than buying them. Quite often you feel short-changed when selling back a huge stack of games and only receiving a few bucks in cash for them. Places like Gamestop have the right to charge whatever they want, but it's important to keep in mind their profit motive as well as developers.

The relevant question to be asked is "Which helps ME the most?" That answer might sound simple based on the afore mentioned factors, but it might not when you consider what each has to do with industry as a whole.

It's easy to think of profits for game developers getting sent straight to the fat cats upstairs, but it's equally as true that at least some of it goes to the products themselves. The damage used games inflict on developers can lead to watered down development cycles and content and in light of so many triple A studio demises from THQ to Irrational, developers are wiling to take far fewer risks in favor of retaining overall company success. Fewer of them are willing to touch controversial topics or go the extra mile to challenge a genre's roots and if not for used games, it's interesting to consider how far would they go. With more sales in their pocket from new releases, would they make bigger, better projects? Are we attached to a dinosaur when we could be supporting the future?

Used-game store chains, meanwhile, thrive on an industry of annual release cycles and cheap prices for sometimes cheaply made games. Games like Call of Duty and Assassin's Creed are series that they live to resell as fast as they hit store shelves as new. If not for them, you might not have old classics to buy back or for the first time, but your new games might be undeniably cheaper. Healthier game companies would have less reason to charge more for their games. They inevitably keep the industry hampered, in some ways, through a factory system of quickie production. Games companies are forced to churn out games faster but not necessarily better for the sake of quicker, lower sales figures. We get more games that way, but does it result in us getting more duds each year than not?

The truth of the argument boils down to the need for quantity or quality in the game industry. We inherently want more games cheaper as consumers but what about daring, bigger games?

One aspect with the debate has to deal with the constant struggle against inevitability. Used-games, especially hard-copies, are certainly not going away today, or tomorrow, or even next year. Yet their lifespan will be challenged again come the generation after next, whether that be by E3 2019 or even sooner. Our world is all going digital and the technological expansions are limiting our need to hold onto tradition. Maybe that's what bothers me and others. We hate change, to lose that old sense of familiarity we have in our habits. Is it for the best in used games' case? For the first time in this 31/31, I don't know the final answer to the dilemma, but what I do know is that, whatever direction we head in, there is such a thing about democratic process. We've already seen what players want in their games and their voices on-line decided Sony and did with used games this next-gen. As long as those voices are heard, gaming might move on when it's good and ready. That's all we can ask for at the end of the day as consumers, isn't it? Respect from our producers.

Armadilo214440d ago

Used games are good and bad, depends on who you ask

darthv724439d ago

i support used games as a means to play ones i missed out on initially. But i do not let used games support me.

Meaning that i play what i buy where as many are into flipping the ones they find cheap and know are worth much much more.

The 2nd hand market is ripe with many a reseller lately which is making individuals believe that just because something is old it has to be worth bank.

If its a copy of burning rangers for saturn...yes. A copy of super mario bros/duck hunt...hell no.

Wait...what was the subject again?

caseh4440d ago

I think used games are an important part of the whole cycle. Removing them wouldn't prove to be beneficial for anyone other than the devs/pubs.

There is no carrot being dangled to suggest games would be cheaper if used games didn't exist. Activision (fine example) produce games that are effectively billion dollar franchises. They wouldn't sell these for any less than they already do, because they already sell incredibly well.

But to be fair, games are the same price now as they were when I went out to buy my first Megadrive game in 1991...£40. Prices crept up a bit with the N64 but have been about £40 for 22 years, that's not bad compared to inflation eh!?

KonsoruMasuta4439d ago

"There is no carrot being dangled to suggest games would be cheaper if used games didn't exist"

Yes there is! Used games are almost non existent on PC nowadays, and PC gamers get better deals, bigger sales, and some games are cheaper on PC than on consoles.

AbleAmazing4438d ago

That has a lot more to do with there being alternative marketplaces. There is good competition at retail. Consoles don't share that benefit. They're closed platforms. Until that situation improves, I'll never buy digitally on consoles.

caseh4437d ago

There are no pre owned PC games in stores because CD keys are seen as non transferable, look it up. Consoles won't see a service like steam for a long time, as retailers still stock huge amounts of both software and hardware. Cheaper online games will alienate the stores that currently feed the likes of Sony and MS.

If anything, publishers want to increase the cost (again, Activision)not lower it. Removing used games will potentially allow this to happen as you will have NO alternative

zero_gamer4439d ago

Used games don't hurt their bottom line. Removing them will not help either. Many gamers became fans of a specific game or franchise as a result of buying a game that may be used or even playing an ill-gotten copy.

It's a form of advertising, except it's free on the business side. It's no different from word of mouth. If your game is so great, people playing them will tell their friends about it and it snowballs from there. Demon's Souls is an example. This game is on my mind because we're looking at the launch day of Dark Souls II. I am pretty sure many that have purchased Demon's Souls preowned at GameSpot or Ebay love the game and became part of the growing cult-status Souls community, like I did.

caseh4439d ago

'Many gamers became fans of a specific game or franchise as a result of buying a game that may be used'

That was the case for me with Uncharted 2, passed it around my friends when I was done with it. Everyone loved it and subsequently pre-ordered Uncharted 3. :)

rainslacker4439d ago (Edited 4439d ago )

I have to question why you would blame used games for for the demise of THQ and Irrational.

THQ, a publisher, not a dev, went under due to releasing too many failed products. They failed well before the used game market hit them. They over-extended themselves, and eventually the parent company had to cut them loose, leading to a sell-off.

Irrational games voluntarily closed down. Every one of their games sold well. However, they spent an exhorbitant amount of money on Bioshock Infinite, and likely didn't recoup it all, or had very little profit. In the end, there was absolutely no evidence that sales were drastically hurt due to used games, and BI itself sold quite well.

I'm not saying there aren't some studios that have been hurt by used game sales, but when you have studios closing down when they sell millions of copies, which is enough to recoup development costs, one has to look elsewhere to find where they ended up not being profitable. It seems many can't accept the fact that the game just didn't do well due to being sub par, or that it lacked the huge marketing budgets(which can be a double edged sword towards profitability), or the game just couldn't find it's target audience. The latter of these is usually the most common, as not every game can generate the hype of a Titanfall, Gran Turismo, Uncharted, etc. In this case it comes down to lackluster marketing, and that happens well before the used game market effects sales.

I understand that you are trying to look at both sides of the issue, but to date, not a single example of a game dev being shut down can be proven to be caused by used games. In the case of poor game sales, they are poor at release, when used copies of the game are simply not as available.

Publishers want to restrict used game sales so they can squeak out that last little bit of revenue, which is reasonable, but by doing so they gain too much control of the market. In addition, this mentality is simply short-sighted, and it's my belief that in the long run it would have a negative impact on future sales of a franchise. In addition it negatively impacts new game sales, as many many people trade in games to buy new ones. Some 80% of the trade ins at GameStop are used to repurchase new games. That's a huge chunk of change to take out of the new game market.

Sadly, the thought that devs would take more risks if used games were no longer allowed is simply fallacy. There is absolutely nothing stopping devs/pubs from doing that now. The fact is that risks are too great, as if the games won't sell in the first two months with used games being available, they aren't likely to sell without them. It's also worth mentioning that the devs out there that take more risks are often rewarded. Risk can lead to great rewards, but the cookie cutter attitude is so prevalent because those games sell millions of copies so there is no risk.

KonsoruMasuta4439d ago (Edited 4439d ago )

I'm not going saying used games are particularly bad, but these devs and pubs aren't as evil as you make them out to be.

I used to work for GameStop and I'll tell you exactly what happens- they train their employees to sell used games instead of new ones. If we saw a customer try to purchase a new game, we were supposed to try to persuade them to get a used copy. Want to know why? Because if the copy is used, the developer and publisher don't get a cut and all profits go to the retailer. These retailers want to receive all the money for themselves, that is the main reason they push used games as much as they do.

These developers and publishers don't get paid for their work because of this practice. The main way game developers earn their money is through the sale of their games; but with used games and retailers trying to convince consumers to buy used copies over new ones, the developers are getting screwed over. This is part of the reason why things like day one DLC, online passes, and microtransactions are becoming so vicious. Developers have to make up for the loss in some way.

You claim that nobody would buy new after two months but that is false. You would never believe how many times I persuaded a customer to purchase a used copy over the new copy they were about to purchase.

The only times I have ever purchased used games is when the game is no longer being produced and there is no digital copy. I buy most of my games new because I actually want to support my favorite developers.

Making a game isn't cheap.
Servers aren't cheap.
Distributing the product isn't cheap.

rainslacker4439d ago

I wasn't trying to make devs or pubs out to be evil. If I came across that way it was certainly unintentional.

I completely understand the GS model. I know why they do it. They simply make more money on the used copy, and as a business it's understandable why they do it. I don't necessarily approve, but as Phil Spencer said yesterday, "business is business".

I think the real problem comes down to that publishers haven't really been able to keep up profits while maintaining enough profits for the retailer at the same time. Over the years, development costs have gone up. This means that the retailers costs have gone up. However, the actual cost of games has remained constant going on two generations now. In fact, games are cheaper now than they were than before last gen.

At the same time, gamers scoff at the thought of a price increase. Because of this, the current cost of games is what the market can bare.

In the end, GameStop is often demonized due to their trade in policies. But the consumer should always remain king. If people are enticed to buy used games, then there is a reason for that. They're cheaper. Nowadays there isn't much reason to not save money as the media itself is pretty durable(Blu-Rays) It isn't really GameStop's responsibility to make a profit for the developers. Their responsibility is to their share-holders, their employees, and the business as a whole.

As to me saying that games don't sell new after a couple months. I never said that. But the profitability of a game is determined within the first month of it's release. Remember when Tomb Raider came out? Less than one month after release SquareEnix was saying they only sold some 5 million copies and how disappointed they were. Less than one month. Do you really believe that that 5 million copies could have been enough more since there just weren't that many used copies floating around at the time? In an industry where 5 million copies isn't enough, doesn't that seem to indicate that there is something else wrong with the business model?

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Microsoft Gaming Revenue Drops 7% Year-on-Year, Content and Services Down 5%, Xbox Hardware Down 33%

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Jin_Sakai7d ago (Edited 7d ago )

Not looking good. Hopefully Asha Sharma is able to turn Phil’s disaster around.

dveio7d ago

To me it's still quite remarkable how they can cash-in 5.3bn in revenue in a single quarter, since their hardware is basically dead.

Jingsing7d ago

The stock mark is what makes Microsoft remarkable, They have convinced every institutional and retail investor to just keep piling money into them. Like many big tech giants they are just a big growing pyramid scheme. As long as people keep dropping money into ETF's that cover the market Microsoft will always be liquid. At the same time it is completely stifling innovation and competition. People need to start being more discreet in how they invest their money as it's killing the system.

Tanktopmaster927d ago

Once they re-evaluate exclusive all will be fine….

S2Killinit7d ago

Riiiiight because people will just flock back to them for one or two games per year.

Jingsing7d ago

15+ years of bad performance is what they call irreparable in business. It is time for them to sell off the assets and get out of entertainment.

Tanktopmaster927d ago

These declines are on the back of extra revenue received from releasing games like Forza horizon 5 on PlayStation. So I’m being sarcastic here when I said they should go back to exclusives. Killing off a revenue stream from Ps5 sales will only make things worse

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