Send News. Want a reply? Read this. More in the FAQ.   News Forum - All Forums - Mobile - PDA - RSS Headlines  RSS Headlines   Twitter  Twitter
User Settings
LAN Parties
Upcoming one-time events:

Regularly scheduled events

Best Buy's Pre-pwned Program

Best Buy tests used video game sales on CNN Money describes a new program being tested in four Best Buy stores in Illinois and California, quoting an industry analyst as saying: "We think there is a reasonable chance that Best Buy will expand used video game product sales to most of its 700+ stores during the next two years." The article does not seem to distinguish between PC and console games, though Gamestop, the major competitor mentioned in this field, does not actually sell used PC games. The article discusses implications of such a program, like the possibility that this would spur higher prices due to increased tech support falling on publishers or accelerate the push toward more widespread digital distribution. They also hear from Epic's Mark Rein on the topic:

Mark Rein, vice president of Epic Games, creators of the "Unreal" franchise as well as the upcoming Xbox 360 game "Gears of War," has vociferously argued against retail sales of used games in the past. The expansion of a major retailer into the field, he said, is disheartening.

"We pay to be in Best Buy's flyers," he said. "We pay market development funds. Publishers drive gaming traffic to these stores. To have them resell the games, with developers having no participation, that's just wrong. That's just fleecing us."
"Are they going to sell used copies of Microsoft Office -- and if not, why not?," asked Rein. "Why is that Microsoft (Research) has no objections to you reselling a copy of 'Halo,' but if you try it with Office, they'll come down on you like a ton on bricks?"

Post Comment
Enter the details of the comment you'd like to post in the boxes below and click the button at the bottom of the form.

38. Re: Marc Rein = Music Industry Oct 1, 2005, 14:58 Chris

Marc's reasoning is invalid. Under the current system, the value to a customer of buying one of his games is:

( value of the game ) + ( value of option to resell).

If on the other hand the resale market were shut down, the value is:

( value of the game ).

That is, demand for his games could be higher because resale exists. Shutting down the resale market would not necessarily increase his profits. Nor would a system under which part of the revenue from a used sale goes to the original developer.

Finally, the markup on used games may appear higher, but so too are the costs of selling these games. In addition to the cost of buying the game from a customer, the store must inspect and repackage the goods, and the return rate is probably higher. There are no barriers to entry into the used or new video games markets so there is no reason to expect there are excess profits to be had in either, which implies amongst other things that the profits from used sales are more or less equal to those from new.

Reply Quote Edit Delete Report
      ;)   ;)   :(   :(   :o   :o   %)   %)   :)   :)   :|   :|   ;P   ;P   X|   X|   :D   :D   More
Login Email   Password Remember Me
If you have a signature set up, it will be automatically appended to your comment.
If you don't already have a Blue's News user account, you can sign up here.
Forgotten your password? Click here.
          Email me when this topic is updated.

Special Codes

  • b[bold text]b
  • i[italic text]i
  • u[underline text]u
  • -[strikethrough text]-
  • c[code text]c
  • +[bullet point]+
  • q[quote text (indented)]q
  • [quote="Author"]quote text (indented)[/quote]
  • [url=Link]text[/url]
  • r{red text}r
  • g{green text}g
  • b{blue text}b
  • m{maroon text}m
  • s{secret text (shows in the background colour)}s

Forum Rules

  1. Disagree all you want but attacks of a personal nature will not be tolerated.
  2. Ethnic slurs and homophobic language will not be tolerated.
  3. Do not post spam, links to warez sites, or instructions on how to obtain pirated software.
  4. Abusing the forums in any manner that could be construed as 'griefing' will not be tolerated.


Blue's News logo