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GameStop: next Xbox sales will suffer if used games are blocked

Retailer warns platform holders not to alienate customers

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Tctczach1296d ago

Duh and so will Gamestop

ABizzel11296d ago

I was coming to say the exact same thing.

EVILDEAD3601295d ago

@ Tctczach

Well said my friend well said.

The Next gen backlash would be as bad as what Nextflix faced when they tried to seperate the streaming from the move rentals.

MS knows this and if they didn't then they got warned.

It's up to them to choose this route or not.

Evil

AngryTypingGuy1295d ago (Edited 1295d ago )

If MS alone bans used games on the next Xbox, then they could stand to lose a lot of customers. If they come to an agreement with Sony and both go this route, it could actually benefit them and the industry as a whole since used game sales actually hurt the developers and publishers.

However in order for a model to be successful where used games are banned, I think both companies need to develop a Steam-like pricing strategy, where games become cheaper more quickly, and insane deals are offered where games and sometimes bundles of games are offered at a crazy discount.

On a separate note, I read a rumor that if next gen discs come with an activation code in order to run them, places like GameStop might buy codes in bulk directly from the publisher so they can still sell used discs. It would be good for the publishers, but it would obviously drive up the cost of used games.

jadenkorri1295d ago

used sales in a part of life, video games is no exception. If MS/sony get away with it, next will be used cars, or tvs. Then we can't sell our car without giving some money back to Toyoda.

morkendo231295d ago

@ ANGRY TYPING GUY

was it not the purpose of "USED games" for people to buy the game cheaper?? who can not afford to buy it NEW??? 59.99 and some people dont buy games until the price is 19.99
used game not going anywhere soon trust and believe that.

GameSpawn1295d ago (Edited 1295d ago )

morkendo23

I have no issue with certain products being resold "used" such that the previous owner of said object gets more money then they would have scrapping said product and the buyer gets said product cheaper than buying it new. It's a WIN WIN.

However in the GameStop used game case, the original owner gets screwed, the publishers get screwed, and believe it or not you the buyer get screwed; GameStop is the only one who wins. How does the buyer get screwed lets count the ways:
1) GameStop actually make MORE from a used game they bought for say $15 and resell for $40 than one they buy at $50 (cost) and sell new at $60
2) Since the publishers are loosing revenue due to (1) new game prices get hiked each generation to recoup the losses
3) Now in addition to (2) some games require you buy an Online Pass (or something similar) at $10-$15 to enable online functionality or missing CORE gameplay features (extra missions, weapons, etc; basically content already on the disc and available if you buy the game new at no extra cost)
4) Even more so in addition to (2) GOOD developers are getting dropped due to lost of revenue both directly and indirectly from used sales
5) And lastly, game quality goes down because budgets usually get cut down because a previous game returned less than it would have with more new sales

In all used game sales actually stagnate and hurt the gaming industry as a whole and the only ones who don't loose in the long run is GameStop and their clones.

I've stopped giving GameStop ANY of my money long ago when I realized how much highway robbery they were committing with their used game sales. Seriously, they buy games at anywhere between $5 and $20 and resell them at a minimum of a $20 profit ($10 or more then they'd ever get from new games).

You know, pirating a game actually does LESS damage than buying a game used because at least it is a lost game sale to BOTH the publisher and GameStop.

+ Show (2) more repliesLast reply 1295d ago
tehpees31296d ago (Edited 1296d ago )

Gamestop would only suffer if it proved successful :P

But no this move would fail hard and fast.

Why is it when I heard the word "block" and the words "used games" I immediately thought of the word "fail!"?

Rainstorm811296d ago

GameStop still sells new games, consoles and etc...so while their cash cow in used games sales would fall off , it would hurt any console makers more in the long run especially if the competition allows used games

aiBreeze1296d ago

Never worked in games retail so while not 100% sure, I was always under the impression that the majority of profit for game stores is through used game sales. It would hurt them a lot.

mwjw6961295d ago

@Rainstorm81 The last numbers are that 45% of Gamestops income is from used games. So yea it would kill gamestop profits.

dcbronco1296d ago

I'm not sure why people believe this will fail. Microsoft, Sony and the developers lose nothing by doing this. They could potentially gain the sales of people who have no choice. Many bought a PS3 despite the price, why not a regular priced game. Plus, games are almost always on sale that first week.

The used market does not benefit them. It only benefits Gamestop and others like them. Gamestop is not so valuable that MS and Sony should feel the need to keep them around. I know I wouldn't miss them. Getting rid of the Gamestops makes the industry healthier.

Darrius Cole1296d ago

NONE of what you said is correct.

The people always have a choice.

Game developers do benefit from the existence of a used game market, because used games bring money into the game market that otherwise would not be spent on games.

If Gamestop didn't make a market for used games the game market would immediately replace them with someone else.

Because specialty shops stock a few of the smaller budget, more exotic games, most hardcore gamers would miss Gamestop or its equivalent (it doesn't matter whether it was called "Gamestop" as long as it was somebody who did what Gamestop does).

Getting rid of specialty shops like Gamestop would hurt the gaming market a great deal.

dcbronco1295d ago

Do you know of some secret program where developers make money on every used games sold? I've never heard of one. All of that new money goes directly to the re-seller. None to the developers or console makers.

You're right. The market would make room for another company to exploit people on their used games. Wait, it already has made several of them. Just more leeches to bring the market down.

We're in the digital age. Rare games will all eventually be available for DL if they are really demanded. Gaming would be so much better off if they disappeared. People love to talk about being hardcore gamers. They will spend $600 for a console, but won't pay $5 more for a new game. What a joke.

Look at Black Ops on Gamestop right now. $54.99. New for $59.99. I bet they paid the person that traded it in $25. So the person that buys it used saves $5. The person that sold it loses $35. Microsoft doesn't get another $10 royalty and the developer doesn't get any of that $30 difference that gamestop gets. How does this help gaming? That $30 Gamestop gets is probably as much as the developer made.

After then develop pays royalties to the console holder, media licenses, development cost, overhead and taxes, Gamestop came out ahead. By being a middle man. An exploitative middle man.

Gamestop needs to develop a talent, provide a unique service or die. It's business model is based solely on exploitation.

But if blocking used games means that 25% of those people pay the extra $5, then gaming actually benefits. That means a developer might be able to stay in business. No one but the people that work at Gamestop and the people that own the stock benefit from used games. Oh, and the ass-clowns that run the company.

Darrius Cole1295d ago

Your second post is all wrong as well.

The second-hand market helps gaming by increasing the total number of dollars that go into the market. For example consider two scenarios.

Say that I want 3 games labeled, A, B, & C, that cost $60 each, but I only have $150.
Also say that another person wants game A and yet another person wants game B, but each person only has $30.

If there is no used game market then I will buy 2 games, and the game industry will get $120. The other two people will not get either game that they want. The other game will sit on the shelf FOREVER. Once I play my two games that I OWN they will be worthless and I can never sell them.

If there is a used game market then I will buy 2 games, play them and then sell them to a specialty shop like Gamestop, for $15 a piece. I will put the $30 I got from reselling my games with the $30 I had left and buy the third game. The gaming industry less Gamestop will get $150. Gamestop will sell the other two games to the other two people for $30 a piece.

Everybody is better off with a used game market. I more games for my money ( 3 games for $150 is less per game than 2 games for $120). The other two people got to play a game instead of no game at all. The gaming industry, other than Gamestop got $150 instead of $120. Gamestop made $30 by making the market.

It's business 101. More efficient markets are better for the masses. Gamestop makes the market more efficient and they deserve to be paid for that. Getting rid of them would make the gaming industry worse off.

Blocking used games is going to shrink the pie. The game developers would have a greater percentage of a smaller amount of dollars.

dcbronco1294d ago

Let's get one thing sorted out first. Are you under the impression that Gamestop severely undersells the developer. I have bad news, they don't. The games that most people buy are only $5 less. So those people with $30 won't be getting anything anyway. Or at least not anything that they wanted. Unless what they want is really old or was cheaper than $60 new anyway. Games like CoD and Halo will always be just $5 less than new. So there is no real savings. In fact, you can get them on sale from one major retailer or another for $45 or $50 in any given week.

I can get that game cheaper right now from Dell with free shipping than I can at Gamestop used. I can get Halo 4 for $40 from Amazon with free shipping. If you take the time to look, you can beat Gamestop any day of the week will getting a new game. Using a site like Pricegrabber let's you do it in less than a minute. So the $30 people have a better chance of getting a new copy for less money and the right people are the ones making a profit. Not some opportunist.

The same goes for the person buying 3 games. I have rarely spent $60 for a new game. When I do, it's usually with a credit or gift card offer. Which means the next game is cheaper and it comes with a card or credit. If you're really a gamer, you already know all of this.

Another thing, probably the main thing. If you only have $150 and can't wait an extra week or two on one of the games, something is wrong and you need to look at fixing that. Not trying to be mean, just a fact of life. If you won't be able to come up with another $10 in the next few weeks, maybe games shouldn't be your priority. Sometimes you just have to go without. Many, many people do. But if you can't, just take a quick look on the Internet and get all three and still save some money over Gamestop.

As for the business 101 thing. Umm, yeah. Business 101 should have been that an secondary market completely seperate from the main market does not benefit the main market in anyway. Though what Gamestop is legal, it is the equivalent of stolen goods. The money made off of the used items sold by gamestop don't make their way back to the developer or console maker in any way. No royalties are paid to the console maker. The developer pays a royalty. And the developers doesn't get a cut of Gamestop's income. So I'm confused why you believe Gamestop is part of the gaming market in that sense. Gamestop is a leech sucking the blood of another animal.

A more efficient market would be for the developers and console makers to get together and start their own used games store. That way, the money does actually go back into the industry. The only gamestop money going back into the industry is from the employees buying games with their paychecks.

Sorry, I forgot. The employees actually play the games and then re-package them as new and sells them to someone else. Dude, just sell your franchise before it's too late.

+ Show (1) more replyLast reply 1294d ago
LAZL0-Panaflex1296d ago (Edited 1296d ago )

If they just lowered games to $29.99,people would buy more new games.

They got this $60 thing in their heads and there are people out there that will only buy the call of duties.

Single player games should be $19.99 and multi/single should be $29.99, then knock off $10 for digitals. Then the game is like 6 months old cut price down.

All these rich dickfaces want $60 +tax for a game that takes 4-6 hours to knock out is insane unless there is only one or two games to choose from. So what people like me do we play em all when they hit the bargain bin, and newer games we buy$10-$30 cheaper on craigslist.

Adjust your prices and shut our pieoles. If u block used games on your "CONSOLES" people like myself will move on to steam and get less expensive games with BETTER GRAPHICS and your industry will sour even further.

Ahh,...tear :*-(

Plus free to play is gonna knock all these activisions and epic types dicks in the dirt.

MEsoJD1295d ago

Gamestop dying would be the one of the good things to come from used games being blocked.

AngelicIceDiamond1295d ago (Edited 1295d ago )

Exactly, which is why MS won't go through with it. MS hasn't shown any signs blocking used games this gen that would speculate any kind of evidence next gen.

Besides the rumored constant internet. Quick Note: That rumor could retain to piracy. Nobody's bought that up yet.

XBL has been MS saving factor in used games this gen. Hell you can pick up Alan Wake used be silver member and still play it with no extra charge. Because MS is making money off of gold anyway, not used games.

+ Show (4) more repliesLast reply 1294d ago
MightyMatt1011296d ago (Edited 1296d ago )

Pretty much common sense..... Actually even someone borderline retarded can figure that out.

MacUser19861296d ago

Never would of thought this would come from GameStop...

Jovahkiin1296d ago

I hate used games, They're always scratched and the cases are in bad condition that's why i'll only buy new.

The real problem here is sharing games with my bro who plays a different console to me and we usually share single player only games.

We're still saving to buy two next gen consoles day one though haha

zerocrossing1296d ago

Where the heck do you buy used games from? Off the back of a truck?

Most reputable used games retailers here in the UK have have used games in near mint condition, and at next to half the price of the new sealed version that is amazing value for money.

I discourage people from buying second hand versions of brand new releases, since that would eventually hamper the industry but buying used games of titles 6 months to a year old does no harm at all IMO, and could even get you interested in a franchise you wouldn't have considered purchasing for the price of the new version.

Jovahkiin1296d ago

I bought a few from Gamestop when they had no new copies and I wanted to play an old favourite. They have always been in bad shaped. Scratched, ripped or no books, sticky cases etc.

I guess I've just had bad luck.

zerocrossing1296d ago (Edited 1296d ago )

@Jovahkiin

Well that is understandable, Im sorry to hear you've had such a bad experience with used games.

You should do what I do and demand to see the condition of the disc, etc, before buying it, that way you avoid those nasty surprises.

PersonMan1296d ago

I've never seen a scratched PS3 blu-ray/

Buuhan11295d ago

Sadly the same is not true for the US, at least in regards to Gamestop. They have no problem taking in games in bad shape, they merely deduct a "refurbish" fee from the persons TiV sometimes. GameStop doesn't even refurbish them, and most don't even test the games. People literally trade in games that won't read and the only time it becomes known is when someone else buys it and promptly returns it.

This generation has been better due to how tough Bluray's are, but last gen games are usually in horrific shape and many 360 games are in bad shape. I kid you not I'm now finding used PS3 games that are scratched!

It makes me sick really as a gamer I can't possibly understand how some people can treat their games like this. I wonder if a lot of people purposely damage their games before trading it in, or maybe they store their game discs in a bucket of razor blades that they happen to keep on their running dryer.

Many brush it off as the price you pay for buying used, but sometimes it goes a bit beyond that.

+ Show (1) more replyLast reply 1295d ago
Darrius Cole1296d ago (Edited 1296d ago )

You wouldn't be buying used 360 games would you? A lot of people still have the old 360's that scratch the discs. The used PS3 games I have bought are never scratched.

Jovahkiin1294d ago

Yeah im rocking a 360. All my games are in mint condition so can't really blame a console. Looking forward to blu-ray next gen xbox haha

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