Send News. Want a reply? Read this. More in the FAQ.   News Forum - All Forums - Mobile - PDA - RSS Headlines  RSS Headlines   Twitter  Twitter
Customize
User Settings
Styles:
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?"

View
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.

 
Previous Post Next Post Reply Quote Edit Delete Report
 
    Date Subject Author
  1. Oct 1, 01:29 No subject beaves
  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
  5. Oct 1, 02:45 A Comment From Mark Rein ViRGE
  7. Oct 1, 02:50  Re: A Comment From Mark Rein Riley Pizt
  11. Oct 1, 05:06   Re: A Comment From Mark Rein Jensen
  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
  22. Oct 1, 11:29    Re: A Comment From Mark Rein Fantaz
  24. Oct 1, 12:05     One upside HoSpanky
  72. Oct 2, 02:56     Re: A Comment From Mark Rein Jensen
  28. Oct 1, 13:32    Re: A Comment From Mark Rein Riley Pizt
  73. Oct 2, 02:58     Re: A Comment From Mark Rein Jensen
  9. Oct 1, 02:56  Re: Fine...I read the damn thing. trashcan
  10. Oct 1, 03:48   Re: Fine...I read the damn thing. Lorcin
  13. Oct 1, 07:48  Re: A Comment From Mark Rein WaltC
  19. Oct 1, 09:55   Re: A Comment From Mark Rein Awesome Spume
  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
  43. Oct 1, 17:24  Re: A Comment From Mark Rein Hump
  6. Oct 1, 02:50 Conflict Of Interest? ViRGE
  12. Oct 1, 06:57 Used PC game Prices Eye 4N Eye
  15. Oct 1, 09:42 No subject aldo_14
  17. Oct 1, 09:50 No subject sc4r4b
  18. Oct 1, 09:53 go about it radically different scorpius
  20. Oct 1, 11:23 No subject VoodooV
  26. Oct 1, 12:25  Re: No subject Warhawk
  27. Oct 1, 12:59   Re: No subject VoodooV
  67. Oct 1, 23:55  Re: No subject MeatForce
  82. Oct 2, 11:59  Re: No subject HorrorScope
  23. Oct 1, 12:03 Okay. Of Rock Star Fame
  29. Oct 1, 13:35  Re: Okay. Ray Marden
  25. Oct 1, 12:16 Used stuff DeaderMeat
  33. Oct 1, 13:48 No subject WebDemon
  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
  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
  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
  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


footer

Blue's News logo