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| [Oct 01, 2005, 01:22 am ET] - Share - Viewing Comments |
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?"
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| 38. |
Re: Marc Rein = Music Industry |
Oct 1, 2005, 14:58 |
Chris |
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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.
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Date |
Subject |
Author |
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1. |
Oct 1, 01:29 |
No subject |
beaves |
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14. |
Oct 1, 08:40 |
ultimate pyramid scheme |
Yakumo |
| |
2. |
Oct 1, 01:55 |
No subject |
Ray Marden |
| |
45. |
Oct 1, 17:36 |
Re: Direct Sale |
FourPak |
| |
3. |
Oct 1, 02:28 |
No subject |
Riley Pizt |
| |
4. |
Oct 1, 02:41 |
GameStop & EB |
Paranoid Jack |
| |
8. |
Oct 1, 02:50 |
Re: GameStop & EB |
Ray Marden |
| |
16. |
Oct 1, 09:48 |
Re: GameStop & EB |
Warhawk |
| |
31. |
Oct 1, 13:42 |
Re: GameStop & EB |
Riley Pizt |
| |
50. |
Oct 1, 19:31 |
Re: GameStop & EB |
WaltC |
| |
51. |
Oct 1, 19:52 |
Re: GameStop & EB |
Ray Marden |
| |
77. |
Oct 2, 09:31 |
Re: GameStop & EB |
WaltC |
| |
56. |
Oct 1, 20:47 |
Re: GameStop & EB |
Riley Pizt |
| |
59. |
Oct 1, 20:53 |
Re: GameStop & EB |
Hump |
| |
64. |
Oct 1, 21:23 |
Re: GameStop & EB |
Riley Pizt |
| |
76. |
Oct 2, 08:03 |
Re: GameStop & EB |
aldo_14 |
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5. |
Oct 1, 02:45 |
A Comment From Mark Rein |
ViRGE |
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7. |
Oct 1, 02:50 |
Re: A Comment From Mark Rein |
Riley Pizt |
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11. |
Oct 1, 05:06 |
Re: A Comment From Mark Rein |
Jensen |
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21. |
Oct 1, 11:23 |
Re: A Comment From Mark Rein |
Ray Marden |
| |
34. |
Oct 1, 13:51 |
Re: A Comment From Mark Rein |
Riley Pizt |
| |
35. |
Oct 1, 14:10 |
Re: A Comment From Mark Rein |
Ray Marden |
| |
37. |
Oct 1, 14:51 |
Re: A Comment From Mark Rein |
Creston |
| |
40. |
Oct 1, 16:33 |
Re: A Comment From Mark Rein |
Ray Marden |
| |
55. |
Oct 1, 20:36 |
Re: A Comment From Mark Rein |
Creston |
| |
60. |
Oct 1, 20:55 |
Re: A Comment From Mark Rein |
Ray Marden |
| |
63. |
Oct 1, 21:13 |
Re: A Comment From Mark Rein |
The Half Elf |
| |
65. |
Oct 1, 22:08 |
Re: A Comment From Mark Rein |
Warhawk |
| |
66. |
Oct 1, 22:27 |
Re: A Comment From Mark Rein |
Creston |
| |
71. |
Oct 2, 01:17 |
Re: A Comment From Mark Rein |
Ray Marden |
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22. |
Oct 1, 11:29 |
Re: A Comment From Mark Rein |
Fantaz |
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24. |
Oct 1, 12:05 |
One upside |
HoSpanky |
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72. |
Oct 2, 02:56 |
Re: A Comment From Mark Rein |
Jensen |
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28. |
Oct 1, 13:32 |
Re: A Comment From Mark Rein |
Riley Pizt |
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73. |
Oct 2, 02:58 |
Re: A Comment From Mark Rein |
Jensen |
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9. |
Oct 1, 02:56 |
Re: Fine...I read the damn thing. |
trashcan |
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10. |
Oct 1, 03:48 |
Re: Fine...I read the damn thing. |
Lorcin |
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13. |
Oct 1, 07:48 |
Re: A Comment From Mark Rein |
WaltC |
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19. |
Oct 1, 09:55 |
Re: A Comment From Mark Rein |
Awesome Spume |
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32. |
Oct 1, 13:44 |
Re: A Comment From Mark Rein |
Riley Pizt |
| |
30. |
Oct 1, 13:37 |
Re: A Comment From Mark Rein |
Riley Pizt |
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43. |
Oct 1, 17:24 |
Re: A Comment From Mark Rein |
Hump |
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6. |
Oct 1, 02:50 |
Conflict Of Interest? |
ViRGE |
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12. |
Oct 1, 06:57 |
Used PC game Prices |
Eye 4N Eye |
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15. |
Oct 1, 09:42 |
No subject |
aldo_14 |
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17. |
Oct 1, 09:50 |
No subject |
sc4r4b |
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18. |
Oct 1, 09:53 |
go about it radically different |
scorpius |
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20. |
Oct 1, 11:23 |
No subject |
VoodooV |
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26. |
Oct 1, 12:25 |
Re: No subject |
Warhawk |
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27. |
Oct 1, 12:59 |
Re: No subject |
VoodooV |
| |
67. |
Oct 1, 23:55 |
Re: No subject |
MeatForce |
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82. |
Oct 2, 11:59 |
Re: No subject |
HorrorScope |
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23. |
Oct 1, 12:03 |
Okay. |
Of Rock Star Fame |
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29. |
Oct 1, 13:35 |
Re: Okay. |
Ray Marden |
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25. |
Oct 1, 12:16 |
Used stuff |
DeaderMeat |
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33. |
Oct 1, 13:48 |
No subject |
WebDemon |
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36. |
Oct 1, 14:20 |
Marc Rein = Music Industry |
Creston |
| >> |
38. |
Oct 1, 14:58 |
Re: Marc Rein = Music Industry |
Chris |
| |
39. |
Oct 1, 15:43 |
Re: Marc Rein = Music Industry |
MindTrigger |
| |
42. |
Oct 1, 17:17 |
Re: Marc Rein = Music Industry |
Riley Pizt |
| |
52. |
Oct 1, 20:09 |
Re: Marc Rein = Music Industry |
Creston |
| |
54. |
Oct 1, 20:32 |
Re: Marc Rein = Music Industry |
The Half Elf |
| |
78. |
Oct 2, 10:42 |
Re: Marc Rein = Music Industry |
WaltC |
| |
79. |
Oct 2, 10:47 |
Re: Marc Rein = Music Industry |
Lost One |
| |
81. |
Oct 2, 11:30 |
Re: Marc Rein = Music Industry |
WaltC |
| |
83. |
Oct 2, 13:00 |
Re: Marc Rein = Music Industry |
Ray Marden |
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86. |
Oct 2, 13:39 |
Re: Marc Rein = Music Industry |
JediPunisher |
| |
87. |
Oct 2, 15:33 |
Re: Marc Rein = Music Industry |
Smellfinger |
| |
88. |
Oct 2, 17:08 |
Re: Marc Rein = Music Industry |
The Half Elf |
| |
89. |
Oct 2, 17:32 |
Re: Marc Rein = Music Industry |
Ray Marden |
| |
85. |
Oct 2, 13:27 |
Re: Marc Rein = Music Industry |
Bhruic |
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58. |
Oct 1, 20:52 |
Re: Marc Rein = Music Industry |
Riley Pizt |
| |
44. |
Oct 1, 17:30 |
Re: Marc Rein = Music Industry |
Riley Pizt |
| |
41. |
Oct 1, 16:54 |
Response to Waltc |
Brym |
| |
46. |
Oct 1, 18:28 |
Re: Inflation is a fake concept |
FourPak |
| |
47. |
Oct 1, 18:32 |
Re: Inflation is a fake concept |
human |
| |
49. |
Oct 1, 19:30 |
Re: Inflation is a fake concept |
Bluesreader |
| |
53. |
Oct 1, 20:22 |
Re: Inflation is a fake concept |
Ray Marden |
| |
48. |
Oct 1, 18:50 |
Forgetting the point... |
Bluesreader |
| |
57. |
Oct 1, 20:49 |
Re: Forgetting the point... |
anon@24.76 |
| |
61. |
Oct 1, 21:05 |
Re: Forgetting the point... |
Ray Marden |
| |
62. |
Oct 1, 21:09 |
They aren't special |
theAntiELVIS |
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69. |
Oct 2, 01:09 |
Re: They aren't special |
Bhruic |
| |
70. |
Oct 2, 01:16 |
Re: They aren't special |
Warhawk |
| |
90. |
Oct 2, 22:04 |
hehe best buy butt |
BoringHotPants |
| |
68. |
Oct 2, 00:51 |
No subject |
SamBeckett |
| |
74. |
Oct 2, 04:25 |
sell online, less overhead |
Charlie_Six |
| |
75. |
Oct 2, 07:04 |
Re: sell online, less overhead |
Prez |
| |
80. |
Oct 2, 10:53 |
Re: sell online, less overhead |
Hump |
| |
84. |
Oct 2, 13:12 |
Re: sell online, less overhead |
Ray Marden |
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