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independent Video Game store owner calls for Boycott of all games with online pass.

Chett Muzzalupo Of Level One games in Columbus Ohio speaks up about EA games and their new Online Pass which he refers to as "Virtual Extortion".
He also proclaims that the gaming community should
"BOYCOTT All games that implement Online pass or anything like it!"

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Christopher3088d ago

So, Chett, you're vocal about methods that publishers are going towards in order to get back money from games that only retailers make a profit off of (second-hand sales) for online gaming... but do you have any suggestions as to how the developers can keep players buying their games new rather than running to second-hand retailers like yourself?

Are you a part of the problem, or the solution?

Honestly, I say get over it. The only reason second-hand retailers are complaining is because it will eat into their profits. Well, guess what? You probably shouldn't have built a business around the idea of eating into the profits of people who actually make the games you sell.

Gamer Muzz3088d ago (Edited 3088d ago )

How easily people forget that the Used game industry stimulates the new game industry. How many new game sales are in part funded by the used game trades of the consumer looking to save some dollars? A Great deal of them.

As for eating into profits, I never hear people telling Used car, Sports equipment, appliance, ETC dealers that they hurt manufacturers. Why the double standard?
Do you buy all your cars brand new? and when you do, do you have to pay extra to use it's pre existing features? No, you do not.

If retailers made any sort of profit on new game sales, then the used market wouldn't be as important. but when the profit on a $60 game is only $8, those games that customers are trading in for resale become very important. Especially when a game takes a price drop and the retailer breaks even or even loses money on it.

Next time you decide to rip on someone who cares about not only the industry but the gamers as well, maybe you should consider what it takes to run a small business and be profitable while still offering a great service to one's clientele. No matter what the business is.

"Part of the problem or solution"? There is no problem. I'm amazed that a company like EA who's profits during a recession can increase 15% for the year earning a net Revenue of $4.212 billion and they still have the balls to say there's any problem at all.
the problem will be when companies like EA destroy the value of our games and decimate the buy sell trade industry putting hundreds of thousands of people out of work.

Christopher3088d ago

**How many new game sales are in part funded by the used game trades of the consumer looking to save some dollars?**

Hardly any in comparison to those who look to buy used rather than new. You trade in 4 games at $15 rebate to equal up to one new game. That means that's 4 used games that people are more enticed to buy for a lower price than a new one.

**I never hear people telling Used car, Sports equipment, appliance, ETC dealers that they hurt manufacturers. Why the double standard?**

Not comparable. You're trying to compare long-term purchases with short term entertainment purchases. You finish a game in a week and buy a lot more than you do those products. The high turn over rate combined with lower prices, incentives to reduce costs are productive for the consumer but harmful to the producers who spent $10-20 million making the game.

**If retailers made any sort of profit on new game sales, then the used market wouldn't be as important.**

Retailers make plenty of profit on video game sales. It's why it's one of the most advertised sales items in their weekly pamphlets. The profit margin on video game sales is equal to that of DVD and CD sales.

The problem is that it's turned into a second-hand business because they want more profit. This in turn results in taking away money from the producers of said products. The end result of that? The producers will create methods to maintain profit so they can continue to produce their product. If it gets to a point where producing their product isn't profitable enough, they stop producing.

All businesses are about profit, so businesses that rely on producers need to work with them rather than take away from them.

**Next time you decide to rip on someone who cares about not only the industry but the gamers as well, maybe you should consider what it takes to run a small business and be profitable while still offering a great service to one's clientele. No matter what the business is.**

I honestly gotta say you're the one who needs to learn about small businesses. Especially for an overall look at how small businesses have to interact and rely on the producers of their products.

**There is no problem. I'm amazed that a company like EA who's profits during a recession can increase 15% for the year earning a net Revenue of $4.212 billion and they still have the balls to say there's any problem at all.**

That 15% increases was the result of a 90% increase in spending as well. One would have expected closer to a 50% increase in profit, at the least, but instead they managed to only squeeze out a 15% increase in profit. That means that they will need to pump even more money into their products to maintain profit increases, which at some point becomes unreasonable.

Since you're inclined to tell me to see it from the small business perspective, what would you do if you were the CEO of EA and you’re spending a greater proportion of money to slightly increase your profit? What would you do if you’re losing millions of dollars a year on maintaining servers, many of those who’re using it having bought the game second-hand?

Lots of people say include free DLC with new games. That doesn't make sense unless you make it DLC that is integral to the game since used buyers won't care about minor DLC. You have to offer something that will really want to make people buy the game new but also won't make it like you're selling the code to finish the game as well.

EA's method only affects those who want to buy used games to play online and does nothing to those who buy it new or those who want to buy used for offline play.

dangert123088d ago

Give Me GT5 and i'm Happy Till the next Gen,and next gen i think they'll be no online pass or dlc ripping of as will see more focus it digital distribution,

xino3088d ago

too bad too many gamers do not even understand wtf is going on in the industry.
They just think, if you don't want to pay don't buy the game or buy it new.

That's not the issue, the issue is these publishers are ripping us off. Why should i pay for online pass when I'm paying for other online service such as Xbox Live?
doesn't make sense does it?

Gamer Muzz3087d ago

You have no idea what you're talking about. your ignorant response really proves it. I've been in this business for 11 years. I know exactly what the Buy Sell Trade business entails.
You're totally clueless.
You can most certainly compare the Video game Buy sell trade business to cars, sports supplies, appliances, ETC.
How long you own a product is completely and totally irrelevant. you still put the cash down on it and that's all that matters.
Profits on games for small businesses are not as good as you seem to think. Bigger retailers have their own distribution centers and some (like gamestop) actually own their own distributors. But I'm sure you know the difference because you....oh..wait...you obviously don't.

I've forgotten more about running a small business than you've ever known. Don't presume to tell me what I need to know. I've been successful for a very long time. there's a reason for that. I'm good at what I do. Period.

That 15% was a $4.212 billion dollar profit in NET REVENUE!! WTF are you talking about "squeeze a profit out"? LOL
thats 15% more than the year prior at 4.212 billion dollars! Do you even know what Net Revenue is? that's money the company makes AFTER everything is paid! and it's increasing year to year!
You're talking about them losing money like EA is in trouble. but THEY'RE NOT! a 15% increase in net revenue equaling 4.212 billion dollars shows that!!! how do you not understand how that works??

BTW, A 90% expenditure? LOL Nice job pulling a fake number out of your ass. Got a source? I didn't think so. You have NO IDEA what you're talking about.

I've been gaming for 25 years, collecting for 12 and working in the retail business for 11. I know exactly what I'm talking about. You're a clueless nobody backing the wrong horse.