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GameStop Interested in Digital Resales

GameSpot has an interesting quote from GameStop CEO Paul Raines, who describes their interest in getting into the (currently nonexistent) market for selling pre-owned digital content. "Its very interesting," he said. "There are some technologies out there in Europe, and weve looked at a couple that are involved. Were interested; its not a meaningful business yet. Right now were not seeing that as a huge market, but I think were on the leading edge. There are a few companies, a few start-ups, out there that weve talked to that are doing this."

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38. Re: GameStop Interested in Digital Resales Jul 27, 2012, 17:31 Julio
 
I don't see gaming companies allowing this. Given corporations run the government in the US, and gaming companies will have more money to spend on buying politicians than gamestop...its never going to happen.  
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37. Re: GameStop Interested in Digital Resales Jul 27, 2012, 11:33 Yakubs
 
I can't think of a single reason a publisher/developer would want to cooperate with something like this unless they get a big cut of all used trades.

Also, short GameStop.
 
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36. Re: GameStop Interested in Digital Resales Jul 27, 2012, 09:58 HorrorScope
 
Verno wrote on Jul 27, 2012, 08:54:
It always strikes me as amusing though that the gaming industry views itself as this special market case. They seem to think they should have all of these separate regulations and exemptions from traditional consumer protection law that the other media industries don't.

I think that is a good point and shows us something else in the bigger picture. As one party continues to harp about the other being too big and too many regulations. Face it when/if the corps have all the control, they will regulate and law us to death as well. Going back to the famous AvP line, whoever wins, we lose.
 
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35. Re: GameStop Interested in Digital Resales Jul 27, 2012, 08:55 Eirikrautha
 
TheEmissary wrote on Jul 27, 2012, 00:28:
Eirikrautha wrote on Jul 26, 2012, 22:32:
TheEmissary wrote on Jul 26, 2012, 20:58:
Only problem with this is that a digital product doesn't degrade like a physical product does. You can't treat it the same because of that very reason. There would be no difference between a new copy and used copy at that point.

I would rather see some one develop a rental system for PC games than reintroducing a used or second hand market.

You are wrong about the degradation aspect of this. A car might gain mileage, but software gains obsolescence! Are you honestly going to tell me that WordPerfect 3.0 still has the same value today as it did when it was released? Or Call of Duty 1?

The reality is that software degrades just like every other product, only, since it is not physical, the degradation is not based on its structure. It degrades because technology advances, and last year's software is not as capable as this year's. Likewise, this year's computers can do more (and leverage more software) than last year's. That is why people upgrade in the first place.

Only someone with no understanding of economics and technology could assert that NHL 98 hasn't degraded in it's desirability and value since it was released. Yeah, that's why everyone still plays it instead of lining up for the newest release from EA every year </sarcasm>... Wall

If the software is still being sold new it isn't obsolete as far the distributor and publisher is concerned. You might have point if and only if the software was out of print/distribution.

The point I am trying to make is that reselling a "used" digital copy is going to have no appreciable difference to new copy. Especially If it is a game that is say a day or a month old as the demand is still every high. All it is going to do is funnel money that would have went to the developer straight to a company that is going to recycle a license key about a hundred times.

The response to this is probably going to be pretty nasty more day-0 DLC, more season multiplayer packs, and or DRM schemes that prevent it. Possibly some other games switching to freemium model.

Actually, my point stands pretty well even without the title being out-of-print. Otherwise, Steam wouldn't be able to have a summer sale... I mean, if the games' value hadn't dropped because they have been out for 5-6 months, how can you justify selling them for 50-75% off?

The second part of your argument I agree with (in principle). This IS going to cannibalize "first sales" during the first few months of release. That's when the disparity between new and used is the smallest. So what? Publishers have already started to use always-online, day one DLC, etc., without even having this bugaboo be a reality! They don't need an excuse to monetize! They are just going to have to change their income stream to take this into account.

The fact is that major game publishers will have to adapt. Tough. When you look at all the hate directed at the MPAA and the RIAA on the intertubes, it seems a little ironic to criticize the rise of game-trading, you know? Will this impact the cost and availability of AAA blockbusters with $150 million budgets? Of course. But that's already a dying model... the patient just doesn't want to accept it yet.

A smart publisher would start to offer its own used-game trading, letting you trade back your license-key and reselling the key for less. They have the best system to do so... they control the keys and software. But that adds uncertainty, which the investors at EActiSoft do not want. So they are going to keep milking a dying cow (in the hopes that they can buy enough politicians to make their business model the law... even though that won't work, either).

Gaming is changing. You either adapt, or you die. Darwin must be appeased...
 
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34. Re: GameStop Interested in Digital Resales Jul 27, 2012, 08:54 Verno
 
Armengar wrote on Jul 27, 2012, 08:14:
Im not in the USA im in Europe. Been here for years too :-)

Selling digital copies is not something I am terrifically bothered about. Giving my digital copies to my friends is a different matter though.

Yeah, I don't mind not being able to resell my games but I'd like the ability to gift away old copies after a period of time or something. I have a shit load of stuff in my Steam library that I will never, ever play and I'd rather just give them to someone else. If that means someone has the ability to resell an old game on ebay for $5 whoop de doo, the industry can tolerate it.

It always strikes me as amusing though that the gaming industry views itself as this special market case. They seem to think they should have all of these separate regulations and exemptions from traditional consumer protection law that the other media industries don't.
 
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Watching: Midsomer Murders, Dominion, The Knick
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33. Re: GameStop Interested in Digital Resales Jul 27, 2012, 08:14 Armengar
 
Im not in the USA im in Europe. Been here for years too :-)

Selling digital copies is not something I am terrifically bothered about. Giving my digital copies to my friends is a different matter though.
 
Its not the cough that carries you off but the coffin they carry you off in.
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32. Re: GameStop Interested in Digital Resales Jul 27, 2012, 08:05 Beamer
 
Car manufacturers actually LOVE the used car market:

1) It allows them to keep car prices very high, by catering mostly to those with a lot of money. They don't have to worry much about the very bottom of the segment, where margins would be slim.

2) It allows for leasing. You need to do something with those off-lease cars, and leasing is very profitable as it allows people to spend more on cars than they otherwise would.

3) It allows for certified re-owned, which keeps dealers flush with cash and very, very happy.

4) It allows buyers to rebuy frequently by selling their old car to someone without as much cash. Rather than having two sales, one with low margin, they get another higher margin sale. Also frequently people buy a better used brand than they could afford new, so someone that would be considering a Nissan buys an Infiniti, from an owner that goes out and buys another Infiniti.

5) It keeps raw material prices down. Cars have a ton of raw material. If cars were disposable, because when you were done with it you threw it away, raw material prices would go up with demand. Again, it damages margins.

6) Used cars and New cars are very different. Used cars smell funny. They have ambiguous issues. They can't be guaranteed in perfect condition. They often aren't warranteed. Things go wrong with them. They're objectively worse than new cars, plus there's a bit of a pride thing about buying a new car. All things being equal, people prefer new cars because they're different than used cars.




Not a single one of those arguments apply to games.
 
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31. Re: GameStop Interested in Digital Resales Jul 27, 2012, 07:10 Wolfen
 
Yes yes. This is why I mentioned that. =P  
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30. Re: GameStop Interested in Digital Resales Jul 27, 2012, 07:05 Bhruic
 
Considering the mention of Europe in the quote up there, it's possible (likely?) that the CEO was thinking about the EU as well. Hard to say.  
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29. Re: GameStop Interested in Digital Resales Jul 27, 2012, 06:48 Wolfen
 
That's all fine and dandy for "EU", but this is U.S.A. Well at least, I am thinking about the U.S.A. Some of you all could be talking about the EU. =)  
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28. Re: GameStop Interested in Digital Resales Jul 27, 2012, 06:06 Bhruic
 
Wolfen wrote on Jul 27, 2012, 04:44:
Right now... this is why it wont work. http://en.wikipedia.org/wiki/Software_license

Unless the publishers / developers say it can be transferred, it can not legally.

Which would be fine if courts in the EU hadn't just ruled that people have the right to resell their digital copies of software (wasn't aimed at games specifically, but very likely applies to them as well).

If the courts say it is legal, you don't need the publishers'/developers' permission.
 
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27. Re: GameStop Interested in Digital Resales Jul 27, 2012, 04:44 Wolfen
 
Right now... this is why it wont work. http://en.wikipedia.org/wiki/Software_license

Unless the publishers / developers say it can be transferred, it can not legally.

 
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26. Re: GameStop Interested in Digital Resales Jul 27, 2012, 03:47 Kajetan
 
TheEmissary wrote on Jul 26, 2012, 20:58:
Only problem with this is that a digital product doesn't degrade like a physical product does.
No, it obviously doesn't degrade physically. But digital content quickly looses worth after the first few months, because there is already the next big thing available. Then there are budget sales and Gold or GOTY versions and so on. The industry devalues their own products very, very quickly.

This comment was edited on Jul 27, 2012, 05:16.
 
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25. Re: GameStop Interested in Digital Resales Jul 27, 2012, 02:21 Sepharo
 
loomy wrote on Jul 27, 2012, 00:11:
lol there are people here trying to justify why we should lose the right to own what we buy and do with it what we please. sorry chaps you'll have to strangle yourself alone, I won't be joining you.

Lose it? You never had it.
 
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24. Re: GameStop Interested in Digital Resales Jul 27, 2012, 02:02 Prez
 
GameSpot has an interesting quote from GameStop CEO Paul Raines, who describes their interest in getting into the (currently nonexistent) market for selling pre-owned digital content.

Well, I wouldn't call the reselling of used digital games "nonexistent" exactly - through the use of their "Capsule" Green Man Gaming has been doing that for a while now.
 
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23. Re: GameStop Interested in Digital Resales Jul 27, 2012, 01:46 Bet
 
I don't want him to be wrong, to stop any further argument that wastes our energy or irritates anyone. I'd love a free market that actually works. I am not a developer, I don't know any developers. No stock owned in any gaming company. For the love of God now let's all pretend I was smart and never posted anything! Hooray!

Unfortunately, I see NKD's argument as being the grimdark vision of what would happen if digital copies could be resold. That's my interest in this, no more games. Or at least no more good games.

If that somehow makes me a hypocrite...?
 
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22. Re: GameStop Interested in Digital Resales Jul 27, 2012, 01:21 Bet
 
Kitkoan wrote on Jul 27, 2012, 01:17:
*whoosh* The link, click and read it... because his argument is no where near as ridiculous as you want it to be.
I want his argument to be ridiculous...why?
 
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21. Re: GameStop Interested in Digital Resales Jul 27, 2012, 01:17 Kitkoan
 
Bet wrote on Jul 27, 2012, 01:08:
Kitkoan wrote on Jul 27, 2012, 01:04:
Bet wrote on Jul 26, 2012, 21:02:
JohnBirshire wrote on Jul 26, 2012, 20:53:
A gray digital market is almost as bad as piracy, as far as developers are concerned.

Just like car manufacturers would LOVE it if nobody could buy used cars. And furniture manufacturers would LOVE it if nobody could buy used furniture. I could go on forever, and that's why I think that this argument is simply ridiculous. I bought it, I own it, I should be able to resell it. What's next, manufacturers of EVERYTHING trying to make it impossible for anybody to ever sell anything used?
Less ridiculous an argument than comparing a piece of software that costs as much as a single meal on sale, to the 2nd (or most) valuable thing people own, other than a house/flat? Really?

Ok then, lets look at something more realistic then.

What if car manufacturers could make it that you couldn't buy or sell used cars
Are you fucking kidding me? You just used his same damn argument!

How about you two try retorting to NKD, instead of using my comment as a straw man. I'm wrong, period, move on.

*whoosh* The link, click and read it... because his argument is no where near as ridiculous as you want it to be.
 
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20. Re: GameStop Interested in Digital Resales Jul 27, 2012, 01:08 Bet
 
Kitkoan wrote on Jul 27, 2012, 01:04:
Bet wrote on Jul 26, 2012, 21:02:
JohnBirshire wrote on Jul 26, 2012, 20:53:
A gray digital market is almost as bad as piracy, as far as developers are concerned.

Just like car manufacturers would LOVE it if nobody could buy used cars. And furniture manufacturers would LOVE it if nobody could buy used furniture. I could go on forever, and that's why I think that this argument is simply ridiculous. I bought it, I own it, I should be able to resell it. What's next, manufacturers of EVERYTHING trying to make it impossible for anybody to ever sell anything used?
Less ridiculous an argument than comparing a piece of software that costs as much as a single meal on sale, to the 2nd (or most) valuable thing people own, other than a house/flat? Really?

Ok then, lets look at something more realistic then.

What if car manufacturers could make it that you couldn't buy or sell used cars
Are you fucking kidding me? You just used his same damn argument!

How about you two try retorting to NKD, instead of using my comment as a straw man. I'm wrong, period, move on.
 
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19. Re: GameStop Interested in Digital Resales Jul 27, 2012, 01:04 Kitkoan
 
Bet wrote on Jul 26, 2012, 21:02:
JohnBirshire wrote on Jul 26, 2012, 20:53:
A gray digital market is almost as bad as piracy, as far as developers are concerned.

Just like car manufacturers would LOVE it if nobody could buy used cars. And furniture manufacturers would LOVE it if nobody could buy used furniture. I could go on forever, and that's why I think that this argument is simply ridiculous. I bought it, I own it, I should be able to resell it. What's next, manufacturers of EVERYTHING trying to make it impossible for anybody to ever sell anything used?
Less ridiculous an argument than comparing a piece of software that costs as much as a single meal on sale, to the 2nd (or most) valuable thing people own, other than a house/flat? Really?

Ok then, lets look at something more realistic then.

What if car manufacturers could make it that you couldn't buy or sell used cars, furniture manugacturers could make if that you couldn't buy or sell used furniture? I could go on forever.

It's being argued in court about this happening at the moment.
 
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