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DICE: Anti Used System 'can be a win and a loss'.

Dead Man

Member
Its a difference but its still not something you can prove. Say customer A usually buys used games around launch for maybe 15$ cheaper, who are you to say that he/she won't buy it new for $50/$60 if its the only thing available?

Most games these days have matchmaking or at least stat tracking and those cost server and infrastructure to run. There are plenty of ways publishers can lose money on a used sale and those occur often.


http://www.thesixthaxis.com/2011/10/17/interview-naughty-dog-on-uncharted-3/

I'm not talking about proving anything, I am trying to demonstrate there is a difference between getting zero revenue from a sale, and losing money due to that sale.
 
You do realize that labelling videogames as software negates the argument about software not being resold, right? I was under the impression that the point of your bringing up software was to show a separate group of consumer goods that could not be resold to back up the idea that there are indeed specific types of consumer goods that cannot be resold, but if that wasn't what you were driving at, then I'll need to ask you to clarify that point.

Furthermore, being legally labelled as software and including EULAs (which are not necessarily legally binding) does not change that they are not marketed as software by the producers, nor are they grouped as software by retailers, nor are they treated as software by consumers. The idea of videogames being comparable to software fails on multiple levels.


Say what? How does it negate anything? Video games are software and fall under the law as software. Read most EULAs and they refer to the product as software. Videogames don't compare to software, they are software. If you think they are anything else than you are delusional. The two are not mutually exclusive.

As far as your point about the laws regarding software and EULAs, lookup autodesk v vernor.


Bullshit, people who buy used games also buy dlc for those games that they wouldn't have purchased otherwise. It could also lead to that person becoming a fan of that series and buying the next iteration on day 1 new if they like it that much. In short the publisher is gaining new customers that they might not have had otherwise if it wasn't for the lower entry point of the used game in the first place. In the 90's the PC shareware model had publishers giving away games FREE to gain new customers and it worked for those who had a good product.

Not every person buys DLC bud. If you have some legit numbers to show me on what percentage of customers buy DLC then please carry on, otherwise stop wasting my time.



I'm not talking about proving anything, I am trying to demonstrate there is a difference between getting zero revenue from a sale, and losing money due to that sale.

Ok but I already knew that. I even provided an example on how companies lose money due to a used sale.
 
Say what? How does it negate anything? Video games are software and fall under the law as software. Read most EULAs and they refer to the product as software. Videogames don't compare to software, they are software. If you think they are anything else than you are delusional. The two are not mutually exclusive.

As far as your point about the laws regarding software and EULAs, lookup autodesk v vernor.


And if videogames fall under the law as software, yet videogames are constantly being resold right now, that means that there is no problem with software being resold, so your entire argument has no point.

And if videogames are classified as software, then why does nobody treat them as such?
 

Dead Man

Member
Ok but I already knew that. I even provided an example on how companies lose money due to a used sale.

I'm not denying that it can be a mixed bag. You seem unable to grasp that I am not trying to prove what happens in every case, just that there is a difference (as you have no agreed) between zero revenue from a sale, and losing money because of a used sale. One does not follow from the other.
 

linkboy

Member
If video games are software, then why haven't game companies used the autodesk case to shut GameStop from selling used games.

You think it would be that simple.
 

snap0212

Member
I'm not denying that it can be a mixed bag. You seem unable to grasp that I am not trying to prove what happens in every case, just that there is a difference (as you have no agreed) between zero revenue from a sale, and losing money beucase of a used sale. One odes not follow from the other.
Semantics. ;)
 

Dead Man

Member
Gamers With Jobs posted an article on used games. I found it interesting, might be worth its own thread if we all weren't sick of arguing about used games :p

Michael Pachter on lost sales vs. trade in revenue used for new games:


http://www.gamerswithjobs.com/node/111869

Great read, thanks for posting.

Edit:
The more far-reaching advantage is tied to trade-in credit. GameStop said in its March 22 earnings call that it generated $2.6 billion in sales for used games and accessories. Wedbush Securities analyst Michael Pachter estimates the company also paid out around $1 billion in in-store credit for trade-ins. "That billion dollars is used as a currency to buy new games," Pachter said. For perspective, the NPD group estimates total sales in the industry at roughly $16.6 billion, which means GameStop’s $1 billion of trade-in currency equals roughly 6% of total sales. "Most people who trade in used games don’t turn around and buy used games," said Pachter. "They trade in used games so they can buy new games."

It’s not a generalization: GameStop's own data bears this out. Speaking to the Dallas Morning News in August 2009, GameStop CEO Paul Raines provided statistics in defense of the used game market, stating that 70% of trade credits from used games immediately go into sales of new software. On top of that, only 4% of used games sold by the retailer have been released in the past 60 days, thereby having the chance to cannibalize new software sales.

Real numbers, for those that want them ;)

Semantics. ;)

Aw, I liked your first version better. :)
 
And if videogames fall under the law as software, yet videogames are constantly being resold right now, that means that there is no problem with software being resold, so your entire argument has no point.

And if videogames are classified as software, then why does nobody treat them as

Video games are still being sold because no publisher has taken retailers to court. They decided upon alternate methods such as online passes. Also its kind of ironic you say that when the whole premise of this thread is about an anti-used system in the consoles. Obviously there is a problem with software being sold lmao.

Believe me when the final verdict dropped retailers were quaking in there boots.

http://www.gamespot.com/news/court-ruling-could-affect-pre-owned-game-sales-6275683

and this is from gamestops fiscal report
Restrictions on our ability to take trade-ins of and sell used video game products could negatively affect our financial condition and results of
operations.
Our financial results depend on our ability to take trade-ins of, and sell, used video game products within our stores. Actions by manufacturers
or publishers of video game products or governmental authorities to limit our ability to take trade-ins or sell used video game products could have a
negative impact on our sales and earnings.

I also don't know wtf you are talking about in regards to people not treating games as software.
 
I'm not denying that it can be a mixed bag. You seem unable to grasp that I am not trying to prove what happens in every case, just that there is a difference (as you have no agreed) between zero revenue from a sale, and losing money because of a used sale. One does not follow from the other.
I just said there was a difference. WTF are you saying?

Great read, thanks for posting.

Edit:


Real numbers, for those that want them ;)

Thats like the third time this article has been quoted at me and I already addressed it lmao.

One more time:


Thats a poor article.

For one, comparing revenue is pretty silly when you consider the gulf between the price floor of a new game and an used game.

Secondly, what does it matter about what the Gamestop ceo said in 2009 as far as trade-ins go? We had a thread this year about gamestop's financial call and the ceo failed to provide hard numbers on the tie-in for used-game credit to new-game purchases. That lead me to believe that the actual numbers are not impactful as he was saying considering how they provided numbers on nearly everything else.

I also think Pachters numbers are simply estimates and unless Gamestop is providing his firm with numbers that they are withholding from their share-holders, its not much more accurate than what we could come up with.
 
Video games are still being sold because no publisher has taken retailers to court. They decided upon alternate methods such as online passes. Also its kind of ironic you say that when the whole premise of this thread is about an anti-used system in the consoles. Obviously there is a problem with software being sold lmao.

In that case why haven't the publishers taken this issue to court? Alternate methods seem a lot more roundabout and less straightforward than simply slapping them with legal precedent.

Unless, of course, they realize that this wouldn't actually work.

I also don't know wtf you are talking about in regards to people not treating games as software.

Everyone, publishers, retailers, and consumers, treat videogames as entertainment goods. Not software.
 

Clear

CliffyB's Cock Holster
Dead Man said:
I'm not denying that it can be a mixed bag. You seem unable to grasp that I am not trying to prove what happens in every case, just that there is a difference (as you have no agreed) between zero revenue from a sale, and losing money beucase of a used sale. One odes not follow from the other.

This is all about supply and demand. Used games fulfill a demand, yet essentially remove the original product suppliers (the ones who bear the maximum investment risk) from the supply chain.

In simple terms used-games offer unwelcome, unfair competition and are thus considered hostile.

In the absence of a legal bar on this sort of trading the suppliers of the original product are changing their business terms to protect themselves. This is how they are changing the "broken" model, and unfortunately a lot of people don't like it.

But the cold truth of it is that the ability to resell items isn't a neccessity -the success of the App store and online vendors like Steam prove it beyond a shadow of a doubt.

Which in turn leads to the inescapable conclusion that this is in fact just the "games are too expensive" complaint over-and-over.
 

Dead Man

Member
I just said there was a difference. WTF are you saying?



Thats like the third time this article has been quoted at me and I already addressed it lmao.

One more time:

You seem to not be grasping the point, which is a simple one. Used game sales are not an unmitigated loss for publishers. Do you get that? Do you understand there are benefits to a used market?

This is all about supply and demand. Used games fulfill a demand, yet essentially remove the original product suppliers (the ones who bear the maximum investment risk) from the supply chain.

In simple terms used-games offer unwelcome, unfair competition and are thus considered hostile.

In the absence of a legal bar on this sort of trading the suppliers of the original product are changing their business terms to protect themselves. This is how they are changing the "broken" model, and unfortunately a lot of people don't like it.

But the cold truth of it is that the ability to resell items isn't a neccessity -the success of the App store and online vendors like Steam prove it beyond a shadow of a doubt.

Which in turn leads to the inescapable conclusion that this is in fact just the "games are too expensive" complaint over-and-over.

I think you may have missed the point a bit too. The app store etc are not all priced at what many people consider more than the product is worth. Used products are not unfair competition, they are a fact of life in a capitalst system.
 
Pureauthor said:
In that case why haven't the publishers taken this issue to court? Alternate methods seem a lot more roundabout and less straightforward than simply slapping them with legal precedent.

Because they are going around the court and locking down there games/systems? Is it really that hard to see? Why take all the trouble of going to court when you can avoid it entirely and implement measures on your own?
Pureauthor said:
Everyone, publishers, retailers, and consumers, treat videogames as entertainment goods. Not software.
Again the two are not mutually exclusive. Do you know what that means?
 
Because they are going around the court and locking down there games/systems? Is it really that hard to see? Why take all the trouble of going to court when you can avoid it entirely and implement measures on your own?

Because going to court would be the less troublesome method by far. And there was no hint of attempting any legal action during the period where systems preventing used games was not ever being discussed. So no, your idea simply does not work.

Again the two are not mutually exclusive. Do you know what that means?

Yes, I do. What I am saying is that they are not treated as software at all. They are treated entirely as entertainment goods.
 
Dead Man said:
You seem to not be grasping the point, which is a simple one. Used game sales are not an unmitigated loss for publishers. Do you get that? Do you understand there are benefits to a used market?

In alot of cases they are as I just pointed out with ND's quotes. Obviously the benefits of the used game market are being outweighed by the negatives. Do you get that?

Dead Man said:
I think you may have missed the point a bit too. The app store etc are not all priced at what many people consider more than the product is worth. Used products are not unfair competition, they are a fact of life in a capitalst system.
What other market allows you to buy a product cheaper in the same store the same week it comes out? Nevermind the fact that employees are trained to sell used first.

snap0212 said:
What? On the last page, you were saying the are the very same thing. When I tried to explain the difference you were saying I was arguing semantics.

Look above you genius.
me said:
Its a difference but its still not something you can prove. Say customer A usually buys used games around launch for maybe 15$ cheaper, who are you to say that he/she won't buy it new for $50/$60 if its the only thing available?
 

Sojgat

Member
Won't work Mr. Bach, I'm sorry to tell you that your reasoning is flawed. Not everyone is online so any anti-piracy system which locks games to a profile or gamertag would, in these cases, be essentially locking the game to one console. That's fine for online shooters (the games you make) where internet connectivity is already a given, but all these new single player games and new ip you are talking about will be at an even greater disadvantage than they are now. I'm also not too sure it will be a positive for massive annual games like COD either. In which case the anti-piracy system would have to be optional, thus being totally pointless and largely detrimental to any game that does not already have online. If EA uses it on all their games and Activision don't, who (besides the consumer) is really going to lose out?

Edit: I suppose the profile could actually be linked to a physical component detachable from the consoles, in which case nevermind everything I just said.
 
Because going to court would be the less troublesome method by far. And there was no hint of attempting any legal action during the period where systems preventing used games was not ever being discussed. So no, your idea simply does not work.



Yes, I do. What I am saying is that they are not treated as software at all. They are treated entirely as entertainment goods.

Ok Im convinced, you have no idea of wtf you are talking about. I suspected that at first but you just confirmed. Congrats my friend.
 

Dead Man

Member
In alot of cases they are as I just pointed out with ND's quotes. Obviously the benefits of the used game market are being outweighed by the negatives. Do you get that?


What other market allows you to buy a product cheaper in the same store the same week it comes out? Nevermind the fact that employees are trained to sell used first.



Look above you genius.

You are still missing his point. You have now got to where you are actually arguing for the position you were against a page ago.

I'm out. Have fun playing with yourself.
 

linkboy

Member
They take it to court, win as easily as you think they will and save themselves a lot of time and money in the process.

Hell, you wouldn't even have to take GameStop to court, go after a smaller mom and pop store who doesn't have the funds to fully fight it.

They take out the used market in one swift move.
 
You are still missing his point. You have now got to where you are actually arguing for the position you were against a page ago.

I'm out. Have fun playing with yourself.
What? How?

I argued that this:

Publishers don't make money off of used game sales, that's correct but also not what you said earlier. Earlier, as I quoted, you claimed that they were 'losing money on used sales', which is something that might be true but is also something that you cannot prove at all. It's an assumption on your side. An assumption you thought was okay to make - to prove your point even though you were calling others out for making assumptions without backing them up with actual facts

was semantics. I never said there wasn't a difference between the two. I think you are the one who is missing the point.

If you don't actually have a counter-argument you can simply stop posting instead of acting snide and dismissive.


What counter-argument is needed? You just said that it would be easier for a companie to take a retailer to court and wait on a long, drawn out, expensive trial that they could possibly lose when they can can just simply write a few lines of code themselves and eliminate the problem internally.

Really?
 

aquavelva

Member
does he really? He's trying to be realistic about the situation. It is important to please customers, but companies exist only to make money. He's just explaining the rock and the hard place between which he finds himself.

Rock and the hard place? Why Is the rock and hard place always about trying to get more money out of the consumer? If you need to sell 2 mil to break even, that's the problem.
 

Burai

shitonmychest57
Most car dealers have a demo model of the new car weeks in advance to secure pre-orders. A friend of mine picked up the demo Civic from his local dealer with 2,000 miles on the clock for a discount on the week they officially "released" the car.
 
Pretty much all of them?
Yeah, no. You can't buy a cd the day it comes out used for a cheaper price in the same store. You can't legally buy a copy of a used cheaper copy of movie the day it hits the BO. Please provide me examples if you can?
I bought my washer used from a Sears store with an equivalent new model sitting right next to it.

Does that make me a bad person. Should I call Kenmore up and apologize.

Thats was the same week that dryer came out right?
 
Most car dealers have a demo model of the new car weeks in advance to secure pre-orders. A friend of mine picked up the demo Civic from his local dealer with 2,000 miles on the clock for a discount on the week they officially "released" the car.

Thats a $10000+ car that he is probably financing anyway. And if they get demo models, then the dealership is most likely certified which means honda gets a cut.
 
What counter-argument is needed? You just said that it would be easier for a companie to take a retailer to court and wait on a long, drawn out, expensive trial that they could possibly lose when they can can just simply write a few lines of code themselves and eliminate the problem internally.

Really?

Because the used games issue became an issue before writing of a few lines of a code onto a console to block used sales became a solution. Unless you're referring to online passes, which is a pretty spotty and incomplete solution as opposed to a legal precedent.

And if there's precedent as in the case of Autodesk v. Vernor, then it will be a relatively fast and simple case. Unless of course it doesn't apply to an entertainment good like videogames.
 
Because the used games issue became an issue before writing of a few lines of a code onto a console to block used sales became a solution. Unless you're referring to online passes, which is a pretty spotty and incomplete solution as opposed to a legal precedent.

And if there's precedent as in the case of Autodesk v. Vernor, then it will be a relatively fast and simple case. Unless of course it doesn't apply to an entertainment good like videogames.

How do you know it would be a fast case? Do you know how the court system works? There were precedents before the Autodesk v Vernor case and it still dragged on. Not to mention the appeals that would certainly happen.

Online passes are the solution for right now but its obvious that if these rumors are true its obvious something far more adequate is on the way.
 
How do you know it would be a fast case? Do you know how the court system works? There were precedents before the Autodesk v Vernor case and it still dragged on. Not to mention the appeals that would certainly happen.

It would have been faster than waiting several years for this new method, (that isn't guaranteed to be applied on all the consoles anyway) years that the majority of those complaining about used games sales were bleeding massive amounts of money.

What you're saying is that these companies basically went 'Well, let's just continue to make enormous losses for a few years and not choose the obvious method of combating used sales (because that is obviously the main culprit here) in the hopes that a few years down the line we'll have a solution. After losing literally billions of dollars.'

That's not really a sensible position. Unless they think that used games sales aren't really a big enough problem to worry over, in which case, why the constant complaints?
 
It would have been faster than waiting several years for this new method, (that isn't guaranteed to be applied on all the consoles anyway) years that the majority of those complaining about used games sales were bleeding massive amounts of money.

What you're saying is that these companies basically went 'Well, let's just continue to make enormous losses for a few years and not choose the obvious method of combating used sales (because that is obviously the main culprit here) in the hopes that a few years down the line we'll have a solution. After losing literally billions of dollars.'

That's not really a sensible position. Unless they think that used games sales aren't really a big enough problem to worry over, in which case, why the constant complaints?


They aren't "hoping" for a solution, they have been making them all along and next-gen both Sony/MSs consoles are rumored to take it even further. Online passes aren't some new thing, they've been around for a while now.

Even though they'll be in court anyways when someone takes then there over something like this.

This sort of thing has been on PCs for ages now, idk why somebody would sue now.
 
They aren't "hoping" for a solution, they have been making them all along and next-gen both Sony/MSs consoles are rumored to take it even further. Online passes aren't some new thing, they've been around for a while now.

But obviously it hasn't been working very well, given the constant stream of complaints from the devs about how much money they're still losing to used games sales.

The longer they've been working against used games sales, the less sense it makes to believe that no one brought it to court and had it shut down, unless it was understood that it wouldn't work in the first place.

Edit: Also I think we kinda drifted in terms of what this discussion was about.
 

Vinci

Danish
I've asked this before but I will ask it again: Why are publishers more concerned about used game sales from the revenue standpoint than they are the fact that people are getting rid of their games within such a short period of time? You know, since that is a part of the whole used games equation that they can, in some sense, control.
 

larvi

Member
Not every person buys DLC bud. If you have some legit numbers to show me on what percentage of customers buy DLC then please carry on, otherwise stop wasting my time.

Show me where I claimed every person buys DLC. I was simply refuting your argument that publishers see no revenue from a used sale.
 

railGUN

Banned
I've asked this before but I will ask it again: Why are publishers more concerned about used game sales from the revenue standpoint than they are the fact that people are getting rid of their games within such a short period of time? You know, since that is a part of the whole used games equation that they can, in some sense, control.

It's probably easier to use technology to eliminate used games rather than actually improving their product.

Also, what PC software, outside Autodesk and OEM Windows can you not resell? I have a hard time finding other major software that doesn't allow for license sales and transfers. (excluding Steam or similar services)
 

linkboy

Member
This sort of thing has been on PCs for ages now, idk why somebody would sue now.

Because, as of right now, the console market, even though you don't want to admit it, is different then the pc market.

Games may be software, but they're currently not treated as such (which is why the used market exists in the first place).

Either way, it's going to up to a court to decide this. We only have two courses that are going to have to happen.

A) Game developers take someone to court over used games

B) someone sues a company over blocking used games.

Either way we end up at the same point.
 

Tellaerin

Member
Fact: People trade in used games to buy more used games. What is your point?


And part of that is because of the second-hand market and it would surely change sans second hand market. Pressure is there for some games but for the majority there really isn't.


Thats not a fact at all.They are guaranteed. You talk like games only receive one price drop. Most games receive 2 to 3 price drops in a shelf life.



Some of those are facts but none really help your point much.





Now answer me this. What percentage of consumers do this?


We know close to nothing. You can point out the different kinds of consumers and their buying patterns, but until we know what percentage of what consumers buys what and how they buy it we don't know shit. The only thing you people try to bring is antecedal evidence, which means jack shit when discussing the microeconomics of this multi-billion dollar industry. Common sense and logic would tell you that.


Excuse me?

People posting antecedal evidence is worthless. Absolutely worthless.


We know enough to prove Leondexter's statement unequivocally true. New game sales will drop if consumers are unable to trade in or resell their old games to help finance their new purchases. You're harping on percentages now, and it's irrelevant to the point I've been making - we can debate the degree to which this will affect new game sales (you seem to believe any effects will be virtually unnoticeable, while I and many others here believe the opposite), and that's worth discussing, but it definitely would happen. I took issue with your insistence that Leondexter couldn't say with certainty that sales of new games would drop in that scenario when all the evidence we have says that they will.
 

SmokedMeat

Gamer™
Nevermind the fact that employees are trained to sell used first.

My local Gamestops doesn't force used games on me ever. Funny how the one thing gamers bitch about most with Gamestop is being pestered to preorder NEW GAMES.

But keep drinking the Kool Aid man! Used game sales have been around since the NES era, and even further back if you consider people selling their old Colecovision/Atari/Intellivision/Odyssey games at yard sales.

Gotta stop those gamers from trying to save money so Cliffy can buy another Ferrari.
 
We know enough to prove Leondexter's statement unequivocally true. New game sales will drop if consumers are unable to trade in or resell their old games to help finance their new purchases. You're harping on percentages now, and it's irrelevant to the point I've been making - we can debate the degree to which this will affect new game sales (you seem to believe any effects will be virtually unnoticeable, while I and many others here believe the opposite), and that's worth discussing, but it definitely would happen. I took issue with your insistence that Leondexter couldn't say with certainty that sales of new games would drop in that scenario when all the evidence we have says that they will.

No the fuck we don't lol. There is nothing Leondexter posted that proves his statement true. Absolutely nothing. All we have is him and you providing baseless anecdotes that are entirely worthless considering how large the game industry is. The only thing his statement means that the sales that they might get from those customers will disappear. Theres no way you, him or anybody else can say that there wouldn't be new sales to take their place.

sorry
 

Durante

Member
We know enough to prove Leondexter's statement unequivocally true. New game sales will drop if consumers are unable to trade in or resell their old games to help finance their new purchases.
Did I miss a page of this thread or were a lot of posts deleted? Because I don't see how you can say that otherwise.
 
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