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Re: Used Games, Industry killer or Gaming Savior?

Unread postPosted: Sun Apr 15, 2012 1:47 am
by rcsha
Ranbir wrote:Licensing. Console makers make money off games being sold, not the console itself.


Exactly. Sony loses money on each PS3 it sells, but it makes up for it with each PS3 game sold.

Look at it like this...
Consolia makes the Cono video game system for $800, per console. They then sell it for $400 per console, so they lose $400 console sold. Let's say they sell 1,000 Conos; that equals a total loss of $400,000.
But then Gamia produces a game for the Cono and they pay Consolia $5 per game to release it. So if we assume 50% of the Cono owners buy Gamia's game, that recoups $2,500. That doesn't seem like much, but there are 20 more companies just like Gamia who want to produce games for the Cono. Each of them pays $5 a piece and each sell out to about 50% of the Cono's owners. That's now $50,000 recouped by Consolia.
So if each game company like Gamia produce 150 games before the Cono's lifespan ends, and each of those games sells to an average of 50% of cono owners, and each game pays Cono $5...
Cono makes $7,500,000 (that's 7.5 million dollars) in the lifespan of its console. After you calculate the loss of $400,000, that's still over 7 million dollars rough profit.

That's a long form answer of Ranbir's point.

Re: Used Games, Industry killer or Gaming Savior?

Unread postPosted: Sun Apr 15, 2012 4:01 am
by Jordan
It's not the greatest business strategy though. If they want to maximize profit, they should try to make money off hardware too, like Nintendo does.

I can't complain too much about quality products though.

Re: Used Games, Industry killer or Gaming Savior?

Unread postPosted: Thu Apr 19, 2012 4:05 am
by TheGreatNads
Jordan wrote:It's not the greatest business strategy though. If they want to maximize profit, they should try to make money off hardware too, like Nintendo does.

I can't complain too much about quality products though.


Doing that risks having hardware that does not impress consumers over the previous generation consoles. Especially long-term wise, as good as Nintendo did with Wii, that console has fallen off dramatically and is clearly not going to have the lifespan that Sony or Microsoft's could. Sony hardware in particular in the video game space usually has a huge lifespan and has support even well after a successor comes out. With the PS3 they can probably accomplish the same feat and I'll be curious to see what difference it would make when the PS3 finally hits the $200 price point.

Re: Used Games, Industry killer or Gaming Savior?

Unread postPosted: Mon May 05, 2014 1:55 pm
by Liu Yuante
I don't have an issue with people buying used games if that's all they can afford. There are used bookstores, used music stores, etc - nothing wrong with used games. That said, now that you can buy basically anything you want digitally, and now that I have enough money to afford it, i don't buy used games, even if it would save me some money. I would rather the developer get some $ back from my purchase than just giving it to Game Stop or EB or whatever. There's another thread somewhere, where I related the story of getting into an argument with a Game Stop employee because they wanted to sell me a used copy of a game that had just come out maybe 2 weeks ago. It would have saved me a measly $5.99 or some such. I told them no.

Part of this is because the only console gaming I do is on Nintendo platforms (I'm a pretty heavy PC gamer) and 3rd-parties need all the financial encouragement they can get to develop for Nintendo systems, given how many people buy those systems just for the Nintendo franchises. Anything I can do to create a greater possibility of games like Xenoblade and The Last Story continuing to be made and released in the West is worth doing, in my opinion. As for PC games - I guess you can still buy those in brick and mortar locations, but I get everything through Steam, Gamefly, GoG.com or Origin. The first 3 run sales so often it's not hard to save money anyway.

The one situation where I will buy a used game is if that's all that's available (for example, had I not purchased Xenoblade Chronicles new, I could see buying it used now, since that's more or less the only way you can get it). Otherwise, new games all the way.

Re: Used Games, Industry killer or Gaming Savior?

Unread postPosted: Sat Aug 05, 2017 6:09 pm
by Dong Zhou
Saw this topic while looking for something and wondering is this still an issue for game companies? It does feel like used games are in decline whether it be gamestop or from amazon as more seem to be turning towards getting their games digitally from places like Origin, Steam and their console market place. I would imagine it is things like special officers on online stores and dlc like offers if you preorder nowadays that is making the dent

Re: Used Games, Industry killer or Gaming Savior?

Unread postPosted: Sat Aug 05, 2017 7:59 pm
by Sun Fin
I get the impression the industry moved on and by making discs a largely marginal part of the market they killed the 2nd hand market in its tracks.

Re: Used Games, Industry killer or Gaming Savior?

Unread postPosted: Sun Aug 06, 2017 6:57 am
by Dong Zhou
Pretty much. I don't remember last time I brought a psychical PC game and I suspect I won't be buying a PS4 disk for some time now PSN is better with prices and offers

Re: Used Games, Industry killer or Gaming Savior?

Unread postPosted: Sun Aug 06, 2017 10:14 am
by DragonAtma
Image

That's why I feel absolutely no guilt when looking for low prices instead of buying games at full price.

Re: Used Games, Industry killer or Gaming Savior?

Unread postPosted: Sun Aug 06, 2017 11:02 am
by Sun Fin
I'm a bit of a sucker for buying hard copies so I buy every game on disc rather than downloading it, I don't know realistically whether they will keep offering that forever.

Re: Used Games, Industry killer or Gaming Savior?

Unread postPosted: Mon Aug 07, 2017 7:05 am
by Dong Zhou
Just what games have you been playing DragonAtma if your original game is that short? :wink:

I would agree though that the amount of dlc means one is usually paying for game (which is reasonably priced) with same again for DLC. The DLC can be great and I'll love it but in essence a game priced is +30-40 added to main game price