Used Game Sales DO Support Developers/Publishers

[CartCollector]

If you're here to whine about how big chain stores (cough GameStop cough) are evil, please leave now.

Okay, now that's out of the way, a little story time. I was watching my friend play one of the new Pokemon games on the DS a few weeks ago, and he said that he was playing a pirated copy on a flash cart. So I asked him, "Why play a pirated copy? It hurts the company that made the product, as well as the people who worked on it." He said 1. Pokemon is a big franchise that Nintendo makes lots of money off of, and that his one pirated copy wasn't going to hurt them, and 2. used games don't support the company nor the workers that made them either, yet they are legal.

It was easy for me to dispel #1 (I didn't say it to him though, I was too taken aback by #2), because it is basic stuff about IP law. What if everyone who bought one of the Pokemon DS games downloaded a pirated copy instead? You see, buying a product is like casting a vote: it shows your support for that product and the company that made it. While he might not have too much of an impact over Nintendo's financial future, his downloading of a pirated copy does set a bad precedent. And when more people begin to pirate because of his example, Nintendo's profit could be hurt, eventually resulting in them going out of business or not having enough money to develop as many new titles. A lose/lose situation, as eventually there will be nothing left to pirate.

Now to #2, where this topic gets its name from. Sure, buying a used game does not directly support the companies that developed/published it. However, one of the factors that affects how much these companies make is shelf space. Used game sales have high profit margins, so they make lots of money for the store and (very likely) the franchise. The more money a franchise has, the more stores they can license, and more stores = more shelf space. Shelf space translates to more sales for the publisher and developer, which translates to more and better-developed products. Do you think Nintendo could risk delaying so many of their products if they didn't have the money to support their dev teams?

Okay, now that you've heard my view: discuss!

[8-bitNesMan]

It would seem to me that the used sales would not be tracked that closely. What I mean is all the companies would be lumped together for the purpose of tracking sales numbers. I don't see Gamestop's (or any other corporation)
beancounters wanting or even being able to say, "We sold X number of used Capcom games, X number of used Konami games, etc, etc. I agree with you about it being a bad precedent, but it's really too late. The floodgates have already burst and there is really nothing that can be done now to stop piracy, emulation, et al. Sure, they'll catch a few brazen idiots here and there, but for the most part people are going to do it because it's relatively easy and it's cheap. My $0.02...

[shadowkn55]

It still doesn't support game companies because that empty shelf space will go towards more used games. They often don't stock multiple copies of the same game on the shelves. When the shelf copy is sold, they'll just grab another used copy and put it out.

[FantasiaWHT]

If retailers weren't able to sell used copies of games, they would have to mark up their new games significantly higher than they are now to make a profit. Right now, a game that sells for $50 might cost the retailer around $43. Of that $7 the store makes, most of it goes to overhead (rent, marketing, payroll, shipping, material) and only a couple bucks winds up being profit.

If retailers weren't making the large amount of profit on used games (it's nowhere near as much as it looks like, tho, but that's for another time), that $7 markup would have to be $17 or more to make up for it.

[Trebuken]

Years ago there was a fear that the sell of used books would hurt new book sales. It turns out that they were completely wrong.

People were more likely to by the new book because they would be able to resell it afterwards and get some of their money back. The sale of neww books actually increased.

The same is true of games; and additionally, as has been said, the stores are able to get their margins up. I think Gamestop is only interested in selling the major releases (Halo's) and used games, the sale of new games is more of a customer service thing for them.

[OdSquad64]

well look at it this way. say I'm at gamestop and I see a used Silent Hill for cheap (true story). I buy it, play it, and discover I like it. From that point on I want to buy every game in the franchise as soon as it comes out. From that one used game sale they've garnered a fan in the series who likely would not have discovered the series otherwise, so while the company didn't benefit from the resale of that game, they would benefit from the sale of all the games following.

[PSXferrari]

Years ago there was a fear that the sell of used books would hurt new book sales. It turns out that they were completely wrong.

People were more likely to by the new book because they would be able to resell it afterwards and get some of their money back. The sale of neww books actually increased.

I see what you're trying to say, but if this is actually true than the people who do this are idiots. Why buy a new book just cuz you can resell it afterwards, when you could buy a used book and also sell it afterwards? Not like the used bookstore knows if you're the 1st, 2nd or 3rd owner of the book.

I normally wouldn't bother getting into the used book debate, but it also applies to games. I don't buy used games from GameStop-- I save a lot more money by getting used games on Amazon or eBay (yes, for older games eBay is known for being expensive, but for newer games it's usually much better than retail). Newer used games at GameStop are usually only marked down like $5 from retail. So new Xbox 360 game would be like $55 used at GameStop, but tends to be closer to $40 used on Amazon (plus $4 shipping). But if I intend to resell it later than I'd rather pay $40 now and then resell it for $30 or so a few months later, rather than paying full price for it (like in the book analogy). In the first scenario it ends up being like you only spent $10 on the game (paid 40, resold for 30). Buying new would have been $30 spent on the game (paid 60, still resold for 30). As with books, no one knows how many pervious owners the game had. With classic games I do something similar to justify the purchase... like when I bought Panzer Dragoon Saga for $100 on eBay, knowing I would resell it a few months later for the same price on eBay.... I call this "renting".

Sorry, I think I took this a little off topic from what this thread was about when it started; wasn't my intentions.

[Steve W]

well look at it this way. say I'm at gamestop and I see a used Silent Hill for cheap (true story). I buy it, play it, and discover I like it. From that point on I want to buy every game in the franchise as soon as it comes out. From that one used game sale they've garnered a fan in the series who likely would not have discovered the series otherwise, so while the company didn't benefit from the resale of that game, they would benefit from the sale of all the games following.

That's an argument that I was about to make. Getting a cheap used copy of of a game in a franchise will probably spur that person to buy the new releases in that franchise.

I hardly ever buy used modern games anyway. I just can't stand getting a trashed case covered with stickers and a scuffed and resurfaced disc for an inflated price. I'm a serious bargain hunter, I tend to find games new in regular retail stores cheaper than I can find the same game in GameStop used. I mentally keep a checklist of game prices for comparison when I go shopping, and used stores like GameStop and EB Games usually aren't very competetive. I don't think they adjust their used game prices with the marketplace. If I can buy Battlefield 2 for the Xbox for $5 at Fry's, why would I want to pay $20 at EB Games for a title missing the instruction manual, if I'm lucky to find one with a case at all?