Jake Tower
Banned
Not everyone has the same taste as you, nor do they necessarily have the same backlog/history of titles played.
Choice is good, there is no downside.
Then why are you for restricting my choice in how to dispose of my property?
Not everyone has the same taste as you, nor do they necessarily have the same backlog/history of titles played.
Choice is good, there is no downside.
Agreed. But they're betting, in a way, that the only real liquidity that exits the market belongs to GameStop's used market anyways. GameStop has come out and said 70% of trade in credit goes to new game purchases. However, price sensitivity on new games purchases is quite low (meaning that people aren't making games purchase decisions with price being a primary factor. IP, quality, word of mouth, genre, etc all are more important purchase drivers than price to the average consumer) and it looks like they want to test out that 70% number to see if it's true.
To be fair, we don't know what policies will be in place. Perhaps nothing changes for the end consumer on the trade in, perhaps GameStop just kicks a couple bucks back to the pubs. Who knows. Perhaps it'll be far worse. We don't know yet.
In the bigger picture, what is really scary is how many young people (who have little disposable income and who do utilize trade ins to fund a majority of purchases) will decrease their frequency of purchase and will turn to other outlets (iOS, League of Legends, etc) for their gaming needs and never look back.
Training the younger generation of gamers to purchase fewer games is the more worrisome thing to me.
My answer wasn't meant to just pertain to my taste. Most of the AAA games coming out are already becoming whittled down. There are too many clones. Just because there are a lot of games still coming out doesn't mean that most of them aren't already suffering from the same problems you listed. There are already too few niche titles. Sure a lot of games are coming out, but that doesn't mean those games are doing something original or interesting. Fuse is a AAA title. I don't think anyone wants Fuse. That's why it's probably going to bomb. I'd rather have a month where I get 4 vastly different AAA games from different genres then a month where I get 8 AAA titles where only two of them aren't trying to replicate something I already have and failing miserably at being better.Not everyone has the same taste as you, nor do they necessarily have the same backlog/history of titles played.
Choice is good, there is no downside.
When choice gets whittled down, all that's going to remain are the huge mass-market titles that sell of their license or branding. That's the irony so many people crying out for the "death of the industry" seem to be missing.
If the shit hits the fan, the first thing to go will be the niche titles, genres that only gamers like. The casual and mass-market dinosaurs will lumber on for years purely on the strength of their branding.
Casual NFL and soccer fans will pick up Madden and Fifa year-in, year-out, regardless of whether they can sell it used or not. These franchises are as near bulletproof as anything in the media.
Personally, I couldn't give a flying fuck about either. But guess what, my taste doesn't really count for much because there are millions of people out there who are into their sport of choice, more than gaming.
Because the people who created the art are more morally justified to that money and support than you or GameStop will ever be.
I know the law and the first-sale doctrine; there is a difference between what is most right and what is lawful.
Yeah, fuck the people who make the games we're arguing about.
My answer wasn't meant to just pertain to my taste. Most of the AAA games coming out are already becoming whittled down. There are too many clones. Just because there are a lot of games still coming out doesn't mean that most of them aren't already suffering from the same problems you listed. There are already too few niche titles. Sure a lot of games are coming out, but that doesn't mean those games are doing something original or interesting. Fuse is a AAA title. I don't think anyone wants Fuse. That's why it's probably going to bomb. I'd rather have a month where I get 4 vastly different AAA games from different genres then a month where I get 8 AAA titles where only two of them aren't trying to replicate something I already have and failing miserably at being better.
I was actually just referencing the AAA market. The indies don't suffer from the same problems as the bigger studios, or at least not as often. Most of my favorite games this gen are independent/downloadable titles, and I'm building a PC at the moment for the specific purpose of checking out all of the weird titles that never come out for consoles.PC market still had good niche titles, and indy has some games that are more fun then AAA games and a lot of these are also available on the console space. Middleware will come back, but in a different way, imo.
Jake Tower said:Then why are you for restricting my choice in how to dispose of my property?
Because the people who created the art are more morally justified to that money and support than you or GameStop will ever be.
I know the law and the first-sale doctrine; there is a difference between what is most right and what is lawful.
I'm not for restricting choice per se. I've specifically stated more than once that I'm not for the system MS has put forward because I think people should be able to trade games. It strikes me as heavy-handed, and honestly I think its too unwieldy to be globally implementable.
What I am against is retailers like Game and Gamestop's predatory practices in pushing used over new purely because it gives them a better margin. It short-sighted profiteering that while it benefits gamers in the short-term, in the long haul it has a damaging effect.
TB pretty much covers most of my reasoning in his spiel regarding how the limited revenue streams available to games publishers make what Game/stop are doing so harmful. I've been arguing this case (and taking the inevitable flak for it) on GAF for a long while now - its a related, but distinctly different thing to the recent shitstorm surrounding Xbone.
After watching the video I honestly completely agree with Total Biscuit. Fuck used games.
You were already arguing against them earlier this week. What changed?
Agreed. But they're betting, in a way, that the only real liquidity that exits the market belongs to GameStop's used market anyways. GameStop has come out and said 70% of trade in credit goes to new game purchases. However, price sensitivity on new games purchases is quite low (meaning that people aren't making games purchase decisions with price being a primary factor. IP, quality, word of mouth, genre, etc all are more important purchase drivers than price to the average consumer) and it looks like they want to test out that 70% number to see if it's true.
To be fair, we don't know what policies will be in place. Perhaps nothing changes for the end consumer on the trade in, perhaps GameStop just kicks a couple bucks back to the pubs. Who knows. Perhaps it'll be far worse. We don't know yet.
In the bigger picture, what is really scary is how many young people (who have little disposable income and who do utilize trade ins to fund a majority of purchases) will decrease their frequency of purchase and will turn to other outlets (iOS, League of Legends, etc) for their gaming needs and never look back.
Training the younger generation of gamers to purchase fewer games is the more worrisome thing to me.
Frankly, not understanding that competition is the thing that keeps prices low on the PC and that with vendor only console digital store you will have no competition in the online space (and maybe no competition at all in time) Not having used sales has nothing to do with it and shows that TB is not as smart as he first appears.
I have found out about a lot of things I didn't realize before. Once you get past the mob mentality of "hate microsoft", I can perfectly see why they want to get rid of this system.
Care to share what those things are (sorry if I missed an earlier post)?
Digital sales, DLC, sound track sales, merchandise... Yep those poor publishers have nothing.No one is saying they will be willing to pay the full price of a game a month or two after release. Comparing it to a movie opening is ridiculous as a studio will receive money from Bluray sales, licensing deals, rentals, royalties and TV broadcasts down the line. Other than licensing deals, what does a video game publisher receive?
Nothing in this wall of text is anything new or mind blowing. This is called doing business.I'm going to give you all some information I have been holding on to for a very long time. I have said in previous posts that I worked for Electronics Boutique a fairly long time ago as an Assistant Buyer. I was there from the beginning of the PS2 generation to the transition to the Xbox 360 just before Gamestop took over. I went back into all of my remnants(old papers and price books) from my time there and found a lot of notes regarding the Used games business. I'm not going to tell you that these types of practices are still in use today, but I am confident in saying, many of these things have led up to the point we are at.
First, some quick info regarding store profitability at EB. Store managers were given profitability plans, which their bonuses were based on. Their P&L's were what they based their selling policies on. Let me explain.
To remain profitable, most stores had to be around a 35% margin. This was very difficult to do as full priced new releases were 20%. Consoles were 1%-3%. When I was there, this amounted to 50-60% of gross company sales. No way would that bring anyone into profitability.
Used games, and to a smaller extent, guide books and 3rd party accessories claimed most of the balance of sales. My numbers showed that used games alone accounted for about 25-35% of gross sales, but at a margin of over 51%
To put this into perspective with 100 million in sales. New games and consoles would account for $60 million in sales making approx 8-10 million in profit(if you account for the fact that is a mixture of new games and consoles) Used games would account for 30 million in sales and about 15 million in profit.
Yes, half the sales, double the profit. Managers were told this repeatedly and told that the only way to make your plan was push pre-owned sales.
Ok, this you all should know and understand.
The other side of things were happening at the corporate offices. We had a "buyer" for managing used games sales and that is all. They were responsible for making sure the business maintained the margins I just told you about. What were their responsibilities?
1. Make sure the avg cost was at least half of the retail value of the preowned games.
2. If the margins were too small, lower the buyback cost to get the avg cost down to that level as quickly as possible to make that profit back.
3. Sell lower margin preowned games "sideways"(to liquidators or distributors to 3rd world countries for a quick profit at higher margins than in the store)
This is where things got a little more interesting. There were times where I was witness to a few things that were perhaps a little more shady.
Video game publishers gave us money(credits off of future invoices or DFI) based on a few things. Advertising dollars(1-3% of ordered goods), defective goods(.5-1% of ordered goods), and price protections(done on a case to case basis to bring down the cost of the item, so the retail can still be at the full margin of the new title).
There were many instances where they would give us money for advertising their products in our catalog and shelf space in the front of the store and we would take that money and use it to bring the avg costs down for their preowned games, while still honoring the advertising commitments. On our end, we would log them in as freebies.
I was there when two smaller publishers caught wind of this practice and threatened to cancel our purchase orders on all future titles. We paid them in free advertising and they kept their mouth shut.
I will tell you this practice continued for some time and it kept those margins in the Pre-owned business MASSIVE.
I cannot be positive about other companies, but I'm sure they have their own creative accounting going on.
This may seem as being a huge attack on the Gamestop model, and there is a lot more that I can tell you. I will be more than happy to answer any questions that I can.
I also want to say, that I do not necessarily agree with some of the practices that MS is supposedly implementing. However, I do recognize that some change is needed for this ecosystem to thrive. There needs to be a compromise between the Developers/Publishers/Retail/Consumer that makes the industry stronger and gives us the games and products we want for the foreseeable future.
Frankly, not understanding that competition is the thing that keeps prices low on the PC and that with vendor only console digital store you will have no competition in the online space (and maybe no competition at all in time) Not having used sales has nothing to do with it and shows that TB is not as smart as he first appears.
when you're not selling a physical product there is no scarcity* and no excess. publishers are responsible for most of the pricing differences. the retailers who are not steam need to take less of a cut to offer a cheaper price. and they operate on the good will of Steam because most people only want Steam codes to play on the best games platform/social network
most of the price differences are not the result of competition between stores. it's (i) competition between games (and other forms of entertainment). the opportunity cost of buying one game with limited discretionary income is such that another may not be bought; and (ii) staggered pricing. different people are willing to buy games at different price points
*there are limited numbers of codes/bandwidth that store fronts have but that's just temporary scarcity in activations/bandwidth
Basically what I see there are industries that made used items work. If videogames can't exist with used games existing that's its fault, not ours.
Why would there be any less competition in the possible XBone game market than there is on Steam? Where have they indicated it would be a "vendor-only digital store?"
Agreed. But they're betting, in a way, that the only real liquidity that exits the market belongs to GameStop's used market anyways. GameStop has come out and said 70% of trade in credit goes to new game purchases. However, price sensitivity on new games purchases is quite low (meaning that people aren't making games purchase decisions with price being a primary factor. IP, quality, word of mouth, genre, etc all are more important purchase drivers than price to the average consumer) and it looks like they want to test out that 70% number to see if it's true.
To be fair, we don't know what policies will be in place. Perhaps nothing changes for the end consumer on the trade in, perhaps GameStop just kicks a couple bucks back to the pubs. Who knows. Perhaps it'll be far worse. We don't know yet.
In the bigger picture, what is really scary is how many young people (who have little disposable income and who do utilize trade ins to fund a majority of purchases) will decrease their frequency of purchase and will turn to other outlets (iOS, League of Legends, etc) for their gaming needs and never look back.
Training the younger generation of gamers to purchase fewer games is the more worrisome thing to me.
That doesn't even make sense. The physical copy IS a physical product and cost money do create and distribute, and that is the only version that is being sold as used. You are not making sense. If used games were higher demand then new versions, there would be a scarcity of that used physical version of the good, this isn't the case with used games(outside of games like Suikoden series or Ogre Battle where they stop printing the new good).
Used CDs didn't hurt the music market.
Used DVDSs didn't hurt the movie market.
Used cars don't hurt the automobile market.
Used games don't hurt the game market.
Are you being serious? Xbox is a console controlled by MS with no other option to turn to for DD. The PC market has a lot of different options for DD beyond Steam.
Who the hell buys used CDs?
Who the hell buys used DVDs?
Are you being serious? Xbox is a console controlled by MS with no other option to turn to for DD. The PC market has a lot of different options for DD beyond Steam.
I have like half a shelf full of used DVDs and Blu-Rays.
Because the people who created the art are more morally justified to that money and support than you or GameStop will ever be.
BlastProcessing said:Predatory practices? Who are the preying on? Consumers?
BlastProcessing said:Publishers? Publishers work with Gamestop extremely closely on Pre Orders and DLC initiatives. They are under no obligation to deal with Gamestop and yet they choose to because they are obviously getting something of value from the relationship. I guarantee that a publisher would rather someone trade in a game for credit at Gamestop than sell the game privately on eBay, Craigslist, or at a garage sale. They are much more likely to convert a Gamest0p sale into a new game purchase.
Then you are in a tiny minority. To the point where outside eBay, where the hell can you even buy them used in a store?
The Walgreens down the street has a fairly extensive selection. I buy them all the time, sometimes I'll just stop in and pick up a can of Monster and a pack of cigarettes and I'll grab a used DVD for $2 on an impulse.Then you are in a tiny minority. To the point where outside eBay, where the hell can you even buy them used in a store?
Who the hell buys used CDs?
Who the hell buys used DVDs?
Yes they do
Yes they do
Actually yes they are, this is how they maintain their massive margins on resold games.
They don't buy and sell to do consumers a favour, they do it because its enormously profitable. And given that consumers are both the supplier and the recipient of the product...
All wrong.
Doesn't matter, if enough consumers view it as a right, the market will treat it like a right, due to the cost of removing that "right". Or they wont and will end up contracting the AAA market(even more).
Then you are in a tiny minority. To the point where outside eBay, where the hell can you even buy them used in a store?
Because this falls in line with what happens during the initial purchase, the idea that you are putting forth is that those who purchase new in mind to sell used, or fall into the cycle. Are large enough or staunch enough to forgo the next generation and its games simply to prove a point.
I actually doubt that. And I am curious to see if this will come to fruition because even MS claimed you will have the ability to sell and trade games but the distinction seems to be making themselves a middleman instead of a B&M store.
Who the hell buys used DVDs?
Then you are in a tiny minority. To the point where outside eBay, where the hell can you even buy them used in a store?
Then you are in a tiny minority. To the point where outside eBay, where the hell can you even buy them used in a store?
I have found out about a lot of things I didn't realize before. Once you get past the mob mentality of "hate microsoft", I can perfectly see why they want to get rid of this system.
Steam is a monopoly. The very thought of having to purchase an item on another service is usually the worst thing in the world for PC gamers.
This is their fault. The indy, iOS, Tablet, and other lower budget projects are growing exponentially.4) Developer costs keep rising. It keeps going up from every generation. More visual quality demands bigger team. This has been the norm for over long time, and it will continue to do so.
unbias said:Bold - They do it because the demand for it is high.
unbias said:Beyond this, there is no evidence that the used market takes away from new game total sales.
unbias said:The indy, iOS, Tablet, and other lower budget projects are growing exponentially.