Separator

Doing the Used Games Debate Justice

Img950653
Thursday, July 21, 2011

I don’t like arguing on the Internet, especially about video games. My rule of thumb is: if I don’t have anything new or unique to contribute, I don't say anything at all. There’s no point in crafting a well-written treatise about which of the Final Fantasy games is like, totally the best, or bemoan the uninspired gameplay in Call of Reach Battle Honorfieldfare, if some snot-nosed jerk behind a computer is going to tear it to shreds in 30 seconds by injecting a Flood-like, er, flood of word goblins into his keyboard. Back and forth exchanges that devolve into GIF-offs and name-calling aren’t really my style.

Once in a while though, man, you just gotta take a stand. Even if “taking a stand” means resurrecting a lightning rod of controversy…which is exactly what I was compelled to do after reading EGM Managing Editor Brandon Justice’s recent opinion on the used games debate, “Used and Abused.”

egm

For those that haven’t read it, Justice’s piece in the July issue chronicles his recent trip to GameStop – replete with overzealous, pre-order happy sales clerk - and his reaction when the guy suggested he save himself a cool $5 on a copy of Castlevania: Lords of Shadow by buying it used:

I paused, gave him a slight frown, and explained, ‘Honestly, man, I’d rather see the publisher get paid for this one, if you don’t mind.

We’ve all been there, right? Those guys are the worst. “(sigh) No, dude, I DON’T wanna preorder Grand Theft Auto 5 and get a free ten year subscription to Cheatz N Stuff!” But then there was this (emphasis is mine:)

 

“…given that GameStop ties an estimated 35 to 40% of their multibillion-dollar revenue stream directly to their used-game initiative, I think it’s time to start asking ourselves about the role we consumers play in the whole equation.”

“…(retail outlets like GameStop are) personally responsible for quietly “relieving” game companies of hundreds of millions annually…a practice that, frankly, is largely responsible for the host of woes currently assailing our favorite industry.

“Sure, it’s nice to save a few bucks here and there, but if you really love video games, it’s time to wise up and take some accountability for what that piddling 5% discount really gets you: game cancellations, layoffs, studio closures, and the advent of annoying programs like “online passes” and DLC packages. All are a direct result of publishers scrambling to find a way to recover losses dealt by this systemic war on revenue sharing.”

“…for the love of all that’s good in gaming, make sure that your dollars are going to the folks who’ve earned it.”

 

Now, I’m not going to sit here and bore you with a blow-by-blow analysis of this controversy. (if you’re not up on the particulars, go ahead and Google “used games debate.” I’ll wait.) I want to address the above claims in particular – claims that I truly feel are irresponsible, misleading, and frame this debate in such a way as to avoid the bigger picture.

 
1 2 3 Nextarrow
Problem? Report this post
BITMOB'S SPONSOR
Adsense-placeholder
Comments (12)
Default_picture
July 21, 2011

I used to work for GameStop, when i was right out of grad school and needed something to buy my subway fare and two meals a day with.  It was actually a surprisingly great gig; I had a phenomenal boss and some good co-workers so it was probably the best GameStop I've ever been in.

That said, the company itself, at the time I work there, made almost no money from new games or consoles.  Those have fixed prices and where a big box store like Wal-Mart can make up the profits elsewhere, GameStop... not so much.  So yeah, all of the money game from used sales.

I'm a big believer in putting cash toward artists you want to support: musicians, game development studios, authors, etc.  Money on the table is what keeps them working.  But by the same token, I'm really, REALLY tired of this unspoken but constantly implicit concept that you need to be above a certain income or socioeconomic threshold to be a gamer.  We're doing well enough, but there's no way my husband and I could afford every game new its first week out at a $60 price point, even if we wanted to.  We wait 6-12 months for some, catch some on epic sales (Steam), and buy some used.  Because in the real world, most gamers aren't made of money.

And while at least sales and delayed purchases still have money going to the developer, rather than just to the used game vendor, I still resent the implication that we're responsible for studios' collapsing and lack of innovation just because we can't spend ALL the money.  Most gamers can't, especially the ones who have families.

In fact, most creative industries are so desperate for cash (and I don't blame them) that there's this constant accusatory tone toward those who won't spend $15 per person on a 3D IMAX movie the day it opens, or $60 on a ten-hour game the day it's released, or $20 on a hardcover on the day of publication.  I don't know how to fix that culture clash, but somehow it'll have to change.

Photo3-web
July 21, 2011

When I worked at EB, they used to tell us that they lost money (a miniscule amount) on each console sold, hoping to make it back in software and accessory sales (not to mention, used games). Ah, good times...working the PS2 opening, having people offer my manager $1,000+ for one :-)

Default_picture
July 21, 2011

I worked the 360 launch, where corporate had let us take 400 console pre-orders and then informed us the night before that we'd be receiving 21 units.

Good times.  By which I mean "I thought the mob was going to see if my head was made of XBoxes."

Photo3-web
July 21, 2011

I've written on this before, but I don't believe the individual gamer has any sort of obligation to "support" the industry. Just as the publisher keeps a sharp eye on the bottom line, it's incumbent upon the consumer to get the best deal possible--whether that means new or used ("value" is a relative term). Altruism doesn't factor into the equation. We're not responsible for the industry's "rut" (which I think is vast;y exaggerated). If the gaming industry is suffering, it's because they've gone creatively stagnant, and refuse to evolve. Why must crappy narratives and shitty dialogue be permitted in gaming but nowhere else? The industry has nobody to blame but itself.

Img950653
July 22, 2011

@Kate - Sounds like it was common knowledge when you worked at GameStop that most of their revenue came from used games. GameStop's never admitted that they have any solid numbers on the percentage of business that comes from used games sales - their public estimates put it around 35-40% (at least, that's what Brandon Justice said in the article.) I'm curious: was this something GameStop knew unequivocally? Or was it based on your own store's observation?

@Jason I think were people get tripped up is this idea that I'm sure is in the minds of many a hardcore gamer - the games industry is just one big happy family, and everyone does it for the love of it, it's about the games, not the money, etc. It's hard to imagine the people who are responsible for thsi hobby you're so passionate about as cutthroat businessmen. I think the industry folks (including Justice) are sort of playing off of gamers' naivete in that regard.

Robsavillo
July 22, 2011

Paul, GameStop reveals in their annual financial reports how much of their revenues and profits stem from used-game sales. They don't try to hide it -- they make a plurality of their money from used sales.

And this is why I disagree with the industry's insistence on attacking the secondary market. Cutting into GameStop's used-game sales means lowering their profits, which means fewer GameStops in fewer locations selling less product (new included).

Just think about now prevalent GameStop locations are right now. It's a dedicated hobby store with more than 6,000 locations nationwide. That's huge! That's an incredible amount of retail presence for video games. I just can't wrap my head around why any publisher or developer would want to scale that back.

Robsavillo
July 22, 2011

Here, check page 12 of GameStop's most recent SEC filing. The retailer sells more new product (59.1% of sales), but earns more profit from used product (48% of profit). It's no secret.

Cutting into what makes GameStop profitable simply means fewer GameStops, which means fewer sales of both new hardware and new software.

Photo3-web
July 22, 2011

Rob, you know my opinion on this issue (at least I hope you do by now), but the publisher's answer would be that brick-and-mortar is obsolete, and the future is digital distribution. So to hell with retail.

It's no wonder the industry prefers digital--against the wishes of consumers, who are wary of ownership rights.

Robsavillo
July 22, 2011

Oh yeah, I do. I think most people around here would know mine by now, too (since I've written several articles on the topic).

Publishers should consider that consumers aren't quite ready for the digital-only future yet for various reasons: slowed broadband adoption, dominance of physical retail and consoles, low sales of digital-only products on consoles, and the unreasonably high price of digital-only software (e.g., compare to digital music, where the price is dramatically lower than physical retail).

We're headed there, sure. How this transition unfolds will certainly be interesting to watch.

Img950653
July 22, 2011

Thanks for that, Rob. It's possible some of the articles I perused for clarification on the issue while writing this article were outdated. I Guess I shouldn't have taken the percentage Justice quoted in his article at face value, either.

Obviously, I agree with your point - looking at the amount of used sales GameStop makes doesn't give us any data on how new game sales are affected. Developers see those consumers as lost customers but there aren't any statistics to back that up.

I didn't want to get too bogged down with the numbers and particulars in this article - the spirit of it was really my dismay at Justice's point that, as someone who occasionally buys used games, I'm culpable for the industry's woes on some level.

Default_picture
July 22, 2011

"Developers see those consumers as lost customers but there aren't any statistics to back that up."

Indeed.  I know in our household, the choice isn't "buy this game for $60 now or buy it for $40 in six months," it's, "Buy this game for $40 in six months or don't buy it at all."  There are some exceptions (Portal2, Mass Effect 3, etc) that we pre-order, but they're maybe 3-4 titles a year, tops.  So I'm with you -- as far as I can tell, that's not the right way to look at it.

Img950653
July 23, 2011
I can't be 100% sure that he's read it, but it looks like I got Brandon Justice's attention: https://mobile.twitter.com/#!/jokeontheworld/status/94450257919881217 Behold, the power of Bitmob!

You must log in to post a comment. Please register if you do not have an account yet.