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

Report this Comment
Use this form to report the selected comment to the moderators. Reporting should generally be used only if the comment breaks forum rules.

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.

Login Email   Password Remember Me
If you don't already have a Blue's News user account, you can sign up here.
Forgotten your password? Click here.


Blue's News logo