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100 million used games traded annually in US photo

In news that is sure to make a number of publishers vomit into their hands, it's being estimated that the number of used games being traded in the US has reached 100 million a year. That equals a revenue stream worth $2 billion, according to the chaps at Wedbush Morgan.

It's not all bad for the industry, however, as it's theorized that only 5% of new game sales are affected by the second-hand market, and the trading in of old games could always lead to new games being bought. The latter is a Captain Obvious, but it's something publishers easily forget when they moan about used games.

"The vast majority of used games are not traded in until the original new game purchaser has finished playing -- more than two months after a new game is released -- typically well beyond the window for a full retail priced new game sale," said good ol' Michael Pachter. 

Big publishers would like us to believe that used games are killing them, but they conveniently forget that they're still raking in millions of dollars from new games, and that all those used games being bought had to have been purchased brand new in the first place. Still, they'll keep acting like victims and keep treating consumers like evil rapists, helping to breed great customer relations.








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14 comments | showing # 1 to 14
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Chronic Logic's Avatar - Comment posted on 06/30/2009 08:57
Chronic Logic
Only 5% of new games are affected? Does the trading of old games to buy new games offset the 5%? Perhaps the video game publishers should start opening up their own retail video game stores. I've seen some EA retail video game stores, but the prices are usually jacked up.
Qraze's Avatar - Comment posted on 06/30/2009 09:07
Qraze
......but the children! i hate how some developers think video games shouldn't be bought second hand. almost every manufactured item in existence can be bought second hand, cars, guns, windows, chairs, beds, movies, music, clothes, etc and those companies still make a profit. what makes video games so goddam special that they shouldn't? fuck developers who think they shouldn't. fuck em.
Zantetsuken's Avatar - Comment posted on 06/30/2009 09:16
Zantetsuken
Cry more games industry.

Your salty tears sustain me.
atastysammich's Avatar - Comment posted on 06/30/2009 09:37
atastysammich


EVIL?!
madfigs's Avatar - Comment posted on 06/30/2009 10:12
madfigs
Especially topical is the huge Goozex banner ad next to this article! Do you think those trades get counted in the total as well?
Cynical Gamer's Avatar - Comment posted on 06/30/2009 11:13
Cynical Gamer
Lots of stupid gamers trading in their games to Gamestop.
Usedtabe's Avatar - Comment posted on 06/30/2009 11:20
Usedtabe
@Cynical: Sometimes, yes. But not when you utilize deals like the one that was offered this past weekend. After 6 games traded in, they tack on an extra 40%. So I traded in 10 games, some worth jack shit after being 2-3 years old(and that I would never play anymore) and got over $180 in credit. Therefore, my x-mas games list is mostly paid for.
silvain's Avatar - Comment posted on 06/30/2009 11:34
silvain
People can't support the $60 price point without trade-ins. Dur.

Welcome to deflation, people.
Cowboy TTop's Avatar - Comment posted on 06/30/2009 12:20
Cowboy TTop
Gamestop spotted an chance in the market took it, and all the crap that comes with it, and made money. The rest of the industry are greedily deluding themselves if they think they are gettin paid twice. Yeah, try running this via the right trade organinsiation from country to country.

Yeah, we are alledgedly loosing money from second hand sales. Whatever...cry me a river and get out of my courtroom. You don't see or hear other industries complaining about second hand goods. People have the right to sell something they don't want any more.

If the industry were really bothered about losing money, they all be backing Goozex/Ebay, since it cuts out the middleman. But alas, no.
GoldenGamerXero's Avatar - Comment posted on 06/30/2009 12:22
GoldenGamerXero
I've got to give digital distribution credit for creating a way where you can't piss off developpers by trading games and the games are so cheap you usually wouldn't wanna trade them but even if you could you'll probably get less money than it's worth.
-PL-'s Avatar - Comment posted on 06/30/2009 12:47
-PL-
I have never ever traded in a game at gamestop, but I have definitely bought traded in games. I don't care if a game is "used" or "new" as long as the box/label/manual are intact and it's playable.

Does the industry really expect everybody to hang onto every game they've ever bought? When people are done with a game and they know they'll never play it again, I don't see anything wrong with trading it in. They purchased the game, they don't want it anymore, they trade it back for less money. Isn't the video game business the most profitable industry out there nowadays? These executives need to be realistic and realize that people aren't going to keep their games forever if they don't ever play them, and that people don't want to pay $60 for every game they buy.
hbl's Avatar - Comment posted on 06/30/2009 13:10
hbl
Hey, the game comes on a physical media, so deal with it and quit complaining you whiney multinational industry! I flip all my used games on eBay, cos who wants dead games stinking up the joint? Not me, I'm the healthy epitome of frugal and streamlined living. Who are these douchebags who stack every game they've ever bought in a neat pile in their living room? Packrats, every last one of them.

The day will come when you can sell ethereal games over the magic that is the internet and they will exist only as a footprint on someone's bagigabyte hard drive and can never be sold to an evil revenue dodging third party. If when this day comes, you are still charging $60 a game, you can 'go fuck yourself'.
Timstuff's Avatar - Comment posted on 06/30/2009 16:58
Timstuff
I usually trade games if they suck anyway, and I buy used games if they're rare / out of print. If publishers want to squash the used game market, then they should do it by making better games that are worth holding on to, and making sure that their back catalogue is readily availible instead of discontinuing everything after a year. But of course, neither of those will happen, so just let it go and accept that people enjoy swapping their games.
davegent2525's Avatar - Comment posted on 01/29/2012 16:45
davegent2525
Have you heard about SwapFu.com? I am asking because I like the idea of no point systems and they offer a wide variety of trading. Not just games, but gaming products and mobile electronics. I have been hearing a lot of good things about this site and its release in Spring. I pre registered to see what it’s all about and I get a free trade out of it. I'm sold on its simplicity as Iv’e been told. Please let me know if you have heard of anything about this site. I have been told on twitter the site is built from scratch with a whole new trading platform.
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