Much has been said about the issue of used video game sales both in support and opposition to the practice. Very often those in support of used video game sales will point to the used car market as a means of supporting their point. However, there was always something unsettling about that comparison to me because I feel that this comparison actually brings up a major issue which I feel shows how used video games are bad for video games as a whole.
Basically, there is a difference between the value proposition of a new car versus a used car that is not significantly changed in any way by the used car market. However, the value proposition of a new game does seem to be changing for the worst precisely because of the way in which Gamestop has run their used game market. I am not sure if I am just seeing things given that no one on either side has, at least to my knowledge, brought up this point. However, I do think that it is a point that needs to be discussed and included in the discussion of the issue of used video game sales.
Before I am pegged as an industry plant, I just want to preface the meat of the blog by declaring that I do not work for the video game industry or the retail industry (I work for the pharmaceutical industry) and the only person I know remotely associated to the video game industry is an acquiantance from college that worked as a game QA tester during a summer.
The problem with comparing used video games and used cars is the difference in the relative value between "new" and "used" in these products. If I actually have money, I would much prefer to buy a new car (unless it is a special car like a DeLorean) as opposed to a used car. I agree that there is nothing inherently wrong with buying used cars (my own family bought two used car in the recent years) but admittedly, it goes without saying that generally, used cars are seen as being less reliable than new cars for generally justifiable reasons. As such, there is a value proposition to buying a new car that is pretty much untouched by the presence and existence of a used car market. If someone can afford to buy a new car, they will probably prefer a new car over a used car.
In comparison, the value proposition of a new game versus a used game is much different, largely because of the way Gamestop conducts its business. The problem is not that Gamestop is selling used video games: the problem is that they are desperately working to convince customers that there is no difference between new and used games and it appears that this tactic is working. Gamestop intermingles used video games with new video games and in fact many times the layout of the store makes it harder for me to find the new games. Gamestop has that ridiculous practice where they will cut open a new box of a video game in order to skimp on a display copy therefore turning a new video game into a used video game before it is even played. Most importantly though, Gamestop's aggressive pushing of their game buyback program as well as their ability to offer a used copy of the latest video game within hours of release pretty much sends the message that if you want to maximize your entertainment value, you should just buy a used video game, blow through it as quickly as possible, and then sell it back and use the credit to buy the next used game, continuing the cycle.
I cannot help but feel that the consequence of this is that video games are decreasing in perception as a long-term entertainment product because of the incentive that exists to go through a chain of used games in the way that Gamestop encourages with their business practices. This is why you see so many games with DLC now: publishers know that there are lots of people that buy used and sell quickly and so they feel less compelled to put the "full experience" of the game onto the disc, especially since a large number of gamers aren't "paying" or "holding onto the game" long enough to really care. I just think that the ultimate consequence of this will be ultimately harmful to the consumer. On one hand, we may reach a point where every game is sold via digital distribution and we will be completely at the mercy of content holders. There is also the possibility that publishers will eventually significantly drop the prices of new games but instead, they will pretty much be little more than glorified boxed demos that we will have to pay to access via DLC.
This is probably the shortest post I have ever written but I think that I will conclude here and wait for comments to come in and see what people think.
Again, to restate my point: there is a difference, both actual and perceived, between a new car and a used car that is not threated by the fact that used cars are being sold all the time. There is also a difference, both actual and perceived, between a new video game and a used video game. However, the way in which companies like Gamestop sell used video games are causing a massive shift in public perception which is hurting the value proposition of not just video games but new video games. While I concede that the used video game market may be beneficial to the consumer, I fear that in the long run, the reaction to this will end up really hurting the consumer.
Your point on the "value proposition" of used cars versus used games is worth bringing up, but one thing I'd add to that is, while it's true that used cars are (or, at least, are generally perceived as) less reliable/long-lived than new ones, the fact remains that, in the time that it takes for a new car to wear out, you could buy a few used cars instead and STILL save a fair load of cash in the end, even considering repairs and whatnot. While what you say about GS and others encouraging gamers to blow through games quickly and trade them back in is true (and there are several things about their system that I'd like to see changed), I honestly don't think that this is the main driving force behind the used games market - the primary factor is the simple fact that, if you're willing to wait awhile for the prices to come down (and don't mind your copy being in less-than-perfect condition), you can snag several used games for the price of a single new one, stretching your dollar further.
I've bought plenty of used games over the years, and have sold very few of them since - my motivation was not to rip off the game companies or to quickly get some of my money back by trading them in, but that it was the only way for me to afford the games I wanted, no more, no less (for the record, I've only ever owned used cars as well). While what you say regarding "if you have money, you'll probably want to buy a new car" is true for many, the fact remains that many of us do NOT have much money to burn, and the only recourse we have to keep gaming is to either buy less or buy cheaper...or just stop buying altogether. Granted, I DO buy a fair amount of games brand new, but to put it simply there are a lot of games that, while they might catch my attention, I don't think are worth acquiring at full price, and I'm willing to wait those out.
While this obviously doesn't apply to everyone, when I buy a used game I do know what I'm getting, and that's precisely why I chose to get it instead of a new product - moreover, if publishers continue along their current path of giving second-hand consumers less and less for their money, my only recourse will be to stop buying video games altogether, as opposed to suddenly coming up with the money for all-new stuff. Thing is, I'm not sure they even know customers like me exist - they seem to believe that every one of their customers who buys used is somehow "holding out" on them, and will magically start spending liberally when they have no other option. If this mindset continues and their efforts succeed, methinks they're in for a rude awakening.
I learned very quickly about the "value proposition" of a new car when I bought my first in '03, and the car lost over a third of its value the moment I drove it off the lot. I will never, EVER, buy a new car again.
Plus, my most recent car, I found used with only 8K miles on it, and got it for thousands less than a new option, and with no concerns for reliability or even cosmetic differences. I don't think that part of your argument holds much water.
Still, I agree that there are things about the used market that put undue pressures on the game industry, and I enjoyed the read!
Welcome back, bro!
I want to add one thing that is in defense of used games, something that's never mentioned in the new versus used debate. While it is unfortunate that stores like GameStop encourage trading in and selling back relatively new games, there are vast amounts of older games that do not appear in major retailers anymore. True, these are games that don't command big business anymore, but how else will I be able to play out-of-circulation titles?
Perhaps there is some sort of cutoff date that resellers can establish. After a certain number of months (or years in some cases), you can begin accepting trade-ins for a particular game and selling them as pre-owned. In this way, publishers get a large exclusive window in which to profit from new game sales and resellers can continue business almost as if nothing has changed. Sounds like a fair trade-off.
Hi hi megaStryke, sorry for the long absence without responding in blog form as I had hoped to. I think our conversation on AIM caused a fatal error in my brain and I needed some time to reorganize thoughts. Then I got hit with being sick and worrying about graduation and then finding a job and I only recently got myself all set up. But yeah, I'll respond back to the comments I am getting later tonight. Driving down to Baltimore now for Otakon!
Most times the price difference between new and used is only $5.00 - $10.00 or so ... it's hardly worth buying the used game. Generally, I tend to buy used games when it's an older game that is no longer available new. I actually tried to buy Warhawk a year after release (I wanted the BD version for my husband when they dropped the gamesharing ability of the BD version and he couldn't use my copy to join me in a game) - but it wasnt' available anywhere and we had to buy used. It's amazing how quickly new games are no longer available new. :(
In regards to used cars... for me they are generally just a much better consumer value. By buying a car that's a year old with a decent warranty left, you avoid the price crash inherent in driving the car off the lot.
Welcome back! I look forward to you and Mega engaging in another highly entertaining and educational discourse: hopefully comparing Disney to the video game industry. Either way, your avatar rocks, and so does your writing!
While I am not opposed to secondhand games, I was listening to Joystiq's podcast and they had a very interesting data point from EA. 3.x have played Dead Space, however they only sold 1.x million copies of the game.
If you think about the fact that a title like Dead Space could have generated twice the revenue.
I fear that it's numbers like that that will drive us faster to Download Only games and pay-per-play. At which point I'll stop gaming altogether.
The difference in my mind is that with used cars, there is the chance for the original manufacturer to make money. I've bought a certified used car from companies like Honda, from one of their dealers.
You don't exactly see different stores or "dealerships" for each publisher or developer. The problem is that the only one making money off of used games is GameStop.
Besides this, there is usually a large price difference between used and new cars, depending on just how old the car is. You weren't going to buy a new car for 8000 dollars anyway, right?
But you could easily save that extra 10 or 20 bucks for a new copy, right?
Either way, there's nothing publishers can do but make more compelling content and hope for the best.
I think you brought up a good, unrelated point: When you buy a new car, AS SOON AS YOU DRIVE IT OFF THE LOT, it looses 20-30% of its value. And people complain that a 10 year old ps2 only trades in for 30$ ?
Anyway, it doesn't matter how hard GameStop or any other company pushes its used game sales, it's still not going to change a thing. GameStop's employees could do nothing to "push" used games and customers would still want them - why? - to save money.
One of the big reasons GameStop is in the spotlight at the moment is because of the economic recession. People are looking to save money anywhere possible, so trading in old games to help pay for cheaper used games is very very enticing to consumers looking to save money.
I think everyone is looking too deep into this issue. Used/new sales are all over different industries and the video game market is the only one that seems to have a problem with it - I think the developer/publisher are just pissed because they feel they could be making more money than they are, but really, they won't. Some games I won't pay 60$ for. If I can wait and find it used for 34.99$ in a few months, yea, I'll check it out. But, some games, like Bionic Commando, there's just no way in fucking hell I am paying that much money for. So, it's not a lost sale. I was never going to buy it new to begin with.
I don't claim to have extensive knowledge of the ins and outs of used games, but I'm curious how much game rentals hurt the industry when they became popular?
I'm sure at the time there was some devs fuming over the prospect of some store buying a few copies of a game that they would then rent out again and again. If the game was short enough to beat before it was due back or at least after several consecutive rentals there would be little reason for the consumer to purchase their own copy.
In a way Gamestop is just reselling the same games over and over with no late fees if you decide not to return it.
I imagine in a few more years the advancement of digital distribution will lead to new ways for people to share and exchange games and the industry will be miserable about that. I know that right now digital downloads aren't really tradable, but that might change if people freak out enough about not actually 'owning' the right to do what they want with the game they paid for.