Comments on: Pre-Owned Game Sales Strikes a Nerve http://www.edery.org/2005/12/pre-owned-game-sales-strikes-a-nerve/ For those interested in the business of making good video games. Entrepreneurial spirit a must. Fri, 09 Jul 2010 16:27:16 +0000 hourly 1 http://wordpress.org/?v=3.0 By: breath http://www.edery.org/2005/12/pre-owned-game-sales-strikes-a-nerve/comment-page-1/#comment-54 breath Wed, 14 Dec 2005 03:08:17 +0000 http://www.edery.org/?p=65#comment-54 Check out this <a href="http://lostgarden.com/2005/12/idly-gathered-game-industry-statistics.html" rel="nofollow">article on the game industry's status</a>. In particular, a comment by Robert Blum asserts that the next generation of games is likely to shrink the market because of their high price. Also, Lost Garden is an exceptional games blog that I've been meaning to alert you to. Check out this article on the game industry’s status. In particular, a comment by Robert Blum asserts that the next generation of games is likely to shrink the market because of their high price. Also, Lost Garden is an exceptional games blog that I’ve been meaning to alert you to.

]]> By: breath http://www.edery.org/2005/12/pre-owned-game-sales-strikes-a-nerve/comment-page-1/#comment-53 breath Wed, 14 Dec 2005 02:59:01 +0000 http://www.edery.org/?p=65#comment-53 Cool ideas, I sort of take issue with the notion that resales are a bad thing that need to be prevented. I believe that game resale enables the game industry to have higher-priced games. People buy the game at $50 because they're expecting to flip it for $20 and thus it only costs $30 to them. If they didn't have that option, they might not buy it. Of course, this means that the game industry is making half as many sales, but they're making twice the profit on each sale. Plus there's always the idiots (like me) who will never resell their games, nor buy used ones. Also, a used game can act as a sort of advertisement. I bought Dark Cloud used, and because of it, bought Dark Cloud 2 retail. To sum up my armchair economic opinion, I think that the resale market for games provides substantial beneficial side effects that outweigh the cost of lost sales. Cool ideas, I sort of take issue with the notion that resales are a bad thing that need to be prevented. I believe that game resale enables the game industry to have higher-priced games. People buy the game at $50 because they’re expecting to flip it for $20 and thus it only costs $30 to them. If they didn’t have that option, they might not buy it. Of course, this means that the game industry is making half as many sales, but they’re making twice the profit on each sale. Plus there’s always the idiots (like me) who will never resell their games, nor buy used ones. Also, a used game can act as a sort of advertisement. I bought Dark Cloud used, and because of it, bought Dark Cloud 2 retail.

To sum up my armchair economic opinion, I think that the resale market for games provides substantial beneficial side effects that outweigh the cost of lost sales.

]]> By: David J Edery http://www.edery.org/2005/12/pre-owned-game-sales-strikes-a-nerve/comment-page-1/#comment-52 David J Edery Tue, 13 Dec 2005 21:59:34 +0000 http://www.edery.org/?p=65#comment-52 Nice. Another thought: give consumers good reason to voluntarily forgo their right to resale. I.e. digital distribution. I'm willing to buy a game via Steam (and not be able to share it with friends) in exchange for the convenience of not having to visit a store or wait for the game to arrive via mail. Nice. Another thought: give consumers good reason to voluntarily forgo their right to resale. I.e. digital distribution. I’m willing to buy a game via Steam (and not be able to share it with friends) in exchange for the convenience of not having to visit a store or wait for the game to arrive via mail.

]]> By: ivv http://www.edery.org/2005/12/pre-owned-game-sales-strikes-a-nerve/comment-page-1/#comment-51 ivv Tue, 13 Dec 2005 06:57:50 +0000 http://www.edery.org/?p=65#comment-51 Diamonds are one example of durable physical goods with no aftermarket, which is almost entirely due to a brilliant (heh) advertising campaign by De Beers in the 1930s that imbued the gems with high emotional value that prevented reselling them. If publishers manage to create a similar non-tangible value around games, the problem will be solved. Check out this <a href="http://www.princeton.edu/~amoroz/2004/11/have-you-ever-tried-to-sell-diamond.html" rel="nofollow">very fascinating read on De Beers</a>. Diamonds are one example of durable physical goods with no aftermarket, which is almost entirely due to a brilliant (heh) advertising campaign by De Beers in the 1930s that imbued the gems with high emotional value that prevented reselling them. If publishers manage to create a similar non-tangible value around games, the problem will be solved.

Check out this very fascinating read on De Beers.

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