mightynine
Member
This is digital distribution in a nutshell though.
When it's locked in to one console.
This is digital distribution in a nutshell though.
No, even more devs would just go out of business and even fewer risks would be taken.
Thank you. I'm really tired of these "well look at these shitty dlc add-on packs, games don't even have content now" arguments. DLC is a direct result of the way the market is today.
The issue with solving revenue imbalances (which is what this is) by trying to extract more $ from perceived losses is there aren't many sources of theoretical loss in the first place, so it's a short term (and imho impossible) plan.
The two most common "pools of infinite money" the industry thinks exists are
1: Used game sales.
2: Lost sales due to piracy.
Ok industry, say you've magically "solved" these losses. If you don't change your financial model you'll hit the same wall but there are no boogeymen left to blame now. What do you do? Whatever you come up with to solve this future issue is also probably what you should be doing now instead of this..
When it's locked in to one console.
It was cancelled because noone wanted to buy it!It didn't fail; it was canceled in the face of philistine protests.
The issue with solving revenue imbalances (which is what this is) by trying to extract more $ from perceived losses is there aren't many sources of theoretical loss in the first place, so it's a short term (and imho impossible) plan.
The two most common "pools of infinite money" the industry thinks exists are
1: Used game sales.
2: Lost sales due to piracy.
Ok industry, say you've magically "solved" these losses. If you don't change your financial model you'll hit the same wall but there are no boogeymen left to blame now. What do you do? Whatever you come up with to solve this future issue is also probably what you should be doing now instead of this..
It didn't fail; it was canceled in the face of philistine protests.
They kinda do. It's particularly problematic for textbook publishers, and this is why you get new editions every few years that are basically identical except with the problem sets switched around. And this is a major reason for publishers to push Kindle versions of things.
But a typical paperback just isn't expensive enough for the used market to be a huge threat. I can go buy a mass-market paperback for $7, and trade paper for $16. By the time people finish their $30 hardcover and are looking to sell it, the paperback will be available new for, probably, less money.
It's funny to see all the armchair executives here talking about how publishers should get their fiscal houses in order instead of complaining about used games, and then complaining about the measures those publishers take to do exactly that.
You can't have everything. It's just not a sustainable model. Either you get games that don't look so good, don't have so many features, etc. (or perhaps produced by a sweatshop dev in Russia), or you give up used games, or you get your games served with all the extra monetization crap slathered on top.
It didn't fail; it was canceled in the face of philistine protests.
...why? The person buying the new copy is planning to resell it. If the game is worth ~$50 to everyone, then he's willing to buy new for $50 more than what he can resell it for. If there are 10,000 people in the used chain, and the very last one is willing to pay $50 for the game, why wouldn't the price of the new game be about $50k? This is all provided that this is the common method of game consumption, which I stipulated. I already had a post explaining why it's problematic if it's only a few people doing this and then a bunch of other people buying new and never trading in.
Bzzz, if the game is worth $50 to everyone the first guy will pay $60 for it sell it back for $10 then Gamestop will sell it to each next guy in the chain for $50 or more and buy it back for $10 and so on. This is the problem, thanks for pointing it out.
Bzzz, if the game is worth $50 to everyone the first guy will pay $60 for it sell it back for $10 then Gamestop will sell it to each next guy in the chain for $50 or more and buy it back for $10 and so on. This is the problem, thanks for pointing it out.
When it's locked in to one console.
So those 10,000 would've all bought a brand-spanking new copy?
Somehow, the industry survived back when video stores did this all the time.
I'm sorry, where is the problem here? I'm not seeing it.
You're right; it's broken. The incentives don't line up well. It's not the consumers' fault. They act in their self-interest just as everyone else does.
That is why I was in favor of a console system where used games do not exist and those incentives aren't there for GameStop, etc. anymore. I am also in favor of other console systems where used games are possible. Let them both exist. Let it play out, and see which one you like best in the end. Choices are nice, and so are experiments where Microsoft is assuming all the risk.
The issue with that though is that if you eliminate used games but still keep games at $60, people will probably just buy fewer games. The only way eliminating used games works is if publishers and console manufacturers lower the price of new games. If they don't, consumers would probably just wait until retailers slashed the prices of new games anyway.
And this is basically how a lot of people operate with Steam. They wait until a game on Steam is at a price they think it's worth. I can tell you right now that at most, I bought 10 percent of my Steam library at $50-$60, because those were the games I thought were worth that price.
Everyone should become germaphobic and then they wouldn't touch that used game case with a 10 foot pole and a hazmat suit. Works for me.
But I don't have much other sympathy for the industry here. Get your house in order without trying to bite the hand that feeds you.
Yes, it's pretty similar, though the amount of content behind the paywall has grown over the years as we've released more paid content.
Here's another hypothetical:
Let's say we're in a system where "used games" are available for our game DLC. And let's say we need to sell 50,000 copies of a table to make it worthwhile (considering profits, opportunity costs, boosts to sales of our other stuff, etc.). And let's say that without resale, we sell 60,000 of our next table, while with resale, we sell 40,000. At this point, we're not going to make any more tables.
Some people are very happy that they're now able to essentially buy the tables at a discount. Other people are unhappy because there aren't any more tables being made. But few are going to associate the ability to resell with the ceased table production. Hell, we might not even know ourselves - all we know is that pinball isn't worth making anymore.
This is what has happened with a lot of games and game types at retail. They failed to justify their costs for whatever reason, and sometimes used games were the difference maker.
Again, I'm not saying used games should be illegal or whatever, only that people should be aware of the consequences of such a system.
Everyone should become germaphobic and then they wouldn't touch that used game case with a 10 foot pole and a hazmat suit. Works for me.
But I don't have much other sympathy for the industry here. Get your house in order without trying to bite the hand that feeds you.
The issue with that though is that if you eliminate used games but still keep games at $60, people will probably just buy fewer games. The only way eliminating used games works is if publishers and console manufacturers lower the price of new games. If they don't, consumers would probably just wait until retailers slashed the prices of new games anyway.
And this is basically how a lot of people operate with Steam. They wait until a game on Steam is at a price they think it's worth. I can tell you right now that at most, I bought 10 percent of my Steam library at $50-$60, because those were the games I thought were worth that price.
Germaphobes wouldn't want to touch new games either though. Those games don't distribute themselves nor do they fly from the loading dock to the shelf.
Yeah, completely agree with your second paragraph though.
People are aware of the consequences because a used market exists for virtually every product in existence and that has been the case since the beginning of commerce. This "problem" is not unique to videogames and it's not something that was forced on the industry overnight.
People are aware of the consequences because a used market exists for virtually every product in existence and that has been the case since the beginning of commerce. This "problem" is not unique to videogames and it's not something that was forced on the industry overnight.
Anyone who says this doesn't understand the problem.
The "problem" of used games does not affect the consumer, so why should the consumer be the one that has to lose rights to solve the issue? Developers are trying to have their cake & eat it, it is not a compelling argument to claim that games need the budgets they have because consumers demand it whilst simultaneously claiming that they can't make money of said games.
Actually in some ways it is unique to video games. We can't pretend that video games have the same exact factors as other forms of entertainment. People like to compare games to movies, but movies have multiple forms of revenue that just aren't there for video games.
Well this article seems directly aimed to a certain slice of gamers, that want AAA games and do not much care for iOS or smaller ones.
So in that context it make sense for them to say "If you want more of these, this is how it's going to go down".
The problem is probably in the delusional thought that the slice of gamers that give a shit about AAA games is big enough to be able (or willing) to support it.
But the point is: Yes, there are other areas of the industry that are doing very well, but the people supposed to read this article aren't all that interested in that side of gaming.
Actually in some ways it is unique to video games. We can't pretend that video games have the same exact factors as other forms of entertainment. People like to compare games to movies, but movies have multiple forms of revenue that just aren't there for video games.
"You should have the choice to play used games, but you should also choose not to"
I'm not saying used games are the problem. I'm saying if people are blaming the issues that publishers/developers are having trouble with making money on simply getting their house in order, then they fail to understand what the reasons are that problems are arising.
There is no need for two industries to have the same factors for the consumer right to resell to apply. What do cars and furniture have in common? Appliances and lawn mowers? It's irrelevant.
It would probably be a good idea for publishers to create more revenue streams, then.
Actually in some ways it is unique to video games. We can't pretend that video games have the same exact factors as other forms of entertainment. People like to compare games to movies, but movies have multiple forms of revenue that just aren't there for video games.
There is no need for two industries to have the same factors for the consumer right to resell to apply. What do cars and furniture have in common? Appliances and lawn mowers? It's irrelevant.
I don't understand how used games can be blamed for the industry failing.
What percentage of new game sales are used games? And then how many trade-ins/sales haven't been put towards new games?
Who's fault it is it if AAA publishers haven't found a way to diversify their revenue streams? It isn't like diverse revenue streams just plop in to people's laps. Movies did not have trailers at the theares in the 1930s. They did not have a VHS/DVD/Blu Ray market in the 1930s. They didn't have TV licensing deals in the 1930s. They certainly did not have Netflix deals in the 1930s.
They created their diverse revenue streams, then started expanding and growing their business as those diverse revenue streams were established. They did not do what the video game industry is doing, where publishers are growing their production beyond their capability and then saying, "Oh crap, we really need diverse revenue streams!" They are now adding some diversity (DLC, for example), but they clearly started way too late to solve their current problems. That's their fault.
I'm not saying we should take away consumer rights or used games. I'm a strong advocate of that. I'm saying that video games as a form of entertainment have unique factors that are putting it into a position that other forms of entertainment that don't encounter which is why it has a unique set of problems that you just can't shrug away with because everyone else is fine.
They started to do that with DLC, online passes, etc. That's the reason why those things exist. It's also not so simple to create new revenue streams that simply catch on. Let's hear some options on what these other revenue streams can be. Movies have the luxury of initial theatrical debut, after theater distribution such as airlines and hotels, pay TV distribution, physical ownership distribution and in some cases licensing. These avenues aren't applicable or even realistic in the video game industry so I'd like to hear suggestions on what these other revenue streams are.
Ok, so what are these possible revenue streams? Saying just make new revenue streams is just as bad as saying make cheaper games or get your house in order. They're empty suggestions without any weight. I'd like to hear ideas.
Who's fault it is it if AAA publishers haven't found a way to diversify their revenue streams? It isn't like diverse revenue streams just plop in to people's laps. Movies did not have trailers at the theares in the 1930s. They did not have a VHS/DVD/Blu Ray market in the 1930s. They didn't have TV licensing deals in the 1930s. They certainly did not have Netflix deals in the 1930s.
They created their diverse revenue streams, then started expanding and growing their business as those diverse revenue streams were established. They did not do what the video game industry is doing, where publishers are growing their production beyond their capability and then saying, "Oh crap, we really need diverse revenue streams!" They are now adding some diversity (DLC, for example), but they clearly started way too late to solve their current problems. That's their fault.
Oh man, I love that you think that all these greedy practices would just vanish into thin air if used sales are blocked.Who the fuck cares whose fault it is?
The point is that games overall get shittier because of things like content being pushed out of the main game to DLC, previously free product updates being pushed to paid DLC, game design being warped and molested to accommodate f2p monetization, etc., overpriced consumables designed to confuse the human mind's sense of value, pay-to-win designed to abuse the innate human desire to achieve goals, etc.
If this is your "solution", you can shove it, thanks. I'd rather give up resale and have real games to play.
How about just not supporting publishers, or at the very least games that do that shit to begin with?Who the fuck cares whose fault it is?
The point is that games overall get shittier because of things like content being pushed out of the main game to DLC, previously free product updates being pushed to paid DLC, game design being warped and molested to accommodate f2p monetization, overpriced consumables designed to confuse the human mind's sense of value, pay-to-win designed to abuse the innate human desire to achieve goals, etc.
If this is your "solution", you can shove it, thanks. I'd rather give up resale and have real games to play.
If this is your "solution", you can shove it, thanks. I'd rather give up resale and have real games to play.