Study: Without Used Games Publishers Would Need To Slash Prices To Stay Afloat

Forbes - A new study shows that without used games video game publishers would need to drop their prices by 33%.

[mochachino]

That makes sense. I only buy new but often trade in when doing so. If I couldn't trade in games I'd buy 4-5 less games a year or simply wait longer for games to drop in price (instead of splurging $60 near launch) and build a back log of cheap games.

I only rarely pay a full $60 out of pocket for a game, most of the time I trade something in - regardless of reviews, demos, etc. anytime you buy a game there's a chance you just won't like it that much, or you'll love it at first then grow bored quickly.

Really though, if companies want to prevent used games sales without decreasing overall sales, provide more incentives to download games a.k.a pass the transportation, storage, retail savings, and manufacturing costs onto the consumer. Day 1 download is the same as day 1 physical purchase WTF.

[zeal0us]

Same here I usually wait a month or two before I buy a new release game. At during that period Amazon might drop the price $45 or less.

The video game industry makes billions a year but the companies act like used games and piracy is about to shut them down any minute now. I'm glad every other industry isn't like this because we would be screwed.

[LOGICWINS]

Thats why the Vita will be my main gaming machine for the next 4 to 5 years. Games should be $40 max IMO and Im nt a graphics whore, so Vita will be perfect for me. I went into Target today looking for a cheap pair of shades, saw a Vita, and had a half hour Guacamelee/PS All Stars Battle Royale session.

The Vita will be a great option for people who don't need the latest and greatest tech, but are simply looking for a new, affordable, fun way to game.

[GameCents]

Lol you're saying alot of negatives cloaked in positivity. I don't think you did so intentionally, but this is SONY Haven, people won't like it.

[LOGICWINS]

I wasnt trying to be negative all. We have a lot of people here who thrive of off negativity and like to see everything as negative regardless.

[MASTER_RAIDEN]

the only reason why people disagree is because youre not openly supporting next gen consoles. they love that you like the vita but cant stand that youre overall point was that you wont be supporting consoles. DISAGREE.
though ill probably be one of the guys camped out of a gamestop for days for my launch-ps4, i still have to agree with everything youre saying. the vita is absolutely a handy and powerful gaming machine. it has a strong incoming of software on the horizon so theres absolutely no reason that you should feel somehow "out of the loop". if i wasnt so hopelessly hyped for the ps4, i would say vita would definitely be my primary gaming device for years to come.

[r21]

Exactly. This man gets it!

[NateCole]

I always buy games new and full price as well. They are games i want in my collection so i never resell them.

In saying this though i still want proposed DRM for used games scrapped. They are bad for the industry and bad for smaller publishers and devs.

[ltachiUchiha]

Its the only way I wouldnt mind if any of the big 3 were to take this route is if games are cheaper like $40 then I would be all for it but realistically it will never happen.

[elhebbo16]

If they where to substantially slash the prices like from $60 to $30-40 then I would definitely prefer that over used games. now this is my opinion, i understand others have different situations and would prefer used games more. but i would rather pay $10-15 dollars less then $5 less for a used copy (in gamestop's case).

[GameCents]

I buy used games directly from other gamers. Occasionally at retail but only when it's really cheap. Bought Uncharted 2 and GoW III used at BT Games for $8.90 each
Win!

[elhebbo16]

But after how long after the release of those games?

[bluetoto]

"$5 less for a used copy (in gamestop's case). "

Why do people continue to use this example as if there isn't better cheaper options available?

You can get ANY game on RELEASE day from gamefly for 10-15 less. That's not weeks or even days later, that's release day.

wait a 3 or 4 weeks and amazon has even better deals.

Geez people, GS is not the end all to gaming nor even needed/wanted in this day and age.

[1OddWorld]

"In other words, exactly the opposite of what people are worried will happen if used games go extinct. If video game publishers are greedy—and they most certainly are in it for the profit—they’ll need to lower the cost of their products in order to sell more units. Doing so would make them even more money (and especially via digital.)"

I need to go find all the people from the last week of articles saying it would be the end of gaming and post their names.

[Shadonic]

That makes this study extremely suspicious. I doubt that they would need to slash prices. If they could work someway for companies like game-fly and stuff to work themselves in while giving a cut of the money to the developers as well that would be great. Something like renting the game no online is the usual prouice but you have to pay a slight bit extra for access to the servers which goes directly to the developer.

[iceman06]

This would work for larger publishers. However, there are some middle publishers that would be completely driven out of this market due to profit margins. Companies would be less inclined to take chances on smaller and indie games because they wouldn't drive the sales numbers to meet these expectations. So, in the short it would benefit us. But, as you see with the closing of several publishers and devs due to "low sales", it could eventually lead to less competition and increased prices.

[1OddWorld]

Small developers come and go, they suffer the same fate as any business. Do you believe this change would have made a difference in the success or failure of Angry Birds or Minecraft? Both of these are Indie games. Build a quality game and you will succeed. Build a crap game like Naughty Bear and you will fail.

To quote you.

"But, as you see with the closing of several publishers and devs due to "low sales", it could eventually lead to less competition and increased prices."

This is fear theory. You have no basis for this except you think it could happen. What you don't say is that pricing fluctuates in any market place and usually corrects itself through the free market.

Gaming has seen almost no fluctuation in pricing for 20 years.

[iceman06]

I fully see what you are saying. I agree that the cream sometimes rises to the top...like an Angry Birds or a Minecraft. But, if coffee is only served black...we never get to taste what cream in coffee tastes like. That is the fear. This situation could lead to something that is NOT a free market. It could be more like the larger companies would monopolize the industry and thus control the prices. It could be a short term gain for us in reduction of prices or long term retraction of the industry where great indies, AA titles, and creativity are squeezed out in lieu of AAA sequel-itis and "you will pay because you have no choice" mentality.

[SpideySpeakz]

Well, I guess if you put it like that, then it won't be such a bad idea after all.

[mydyingparadiselost]

I'm glad to see an article that talks about the downfalls of digital ownership, these are the concerns, and the almost always higher or equal price to retail, that keep me from purchasing much of anything digitally.

[Soldierone]

I've been saying this the entire time. Publishers are acting like if they get control, move GameStop out of the way, and "take their share of the money" then it will be a grand ole party.....

Yet look at it this way. I don't buy used titles, but I still trade in games! Why?! Because I cant afford 2 or 3 60 dollar games in a month! Take away used titles and my 2 or 3 games a month turns into MAYBE one game, if I can afford it.

Sure they get rid of the used game market and GameStop crumbles, but the publishers STILL WONT GET THE MONEY because they are losing purchases....

[WhyWai88]

Sell new games at $45 so I no need to trade-in when i buy new game.

[BrianC6234]

This doesn't make any sense. Game publishers don't make a cent off of used game sales. How does getting rid of them help publishers? And you can easily buy any game for $40. They all end up on sale. Just be patient and buy them on sale. You'll probably have to wait two months. No big deal if you want cheaper games.