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Used game market helping new game sales

#1glory of power metalPosted 2/8/2013 4:11:54 PM
I don't think I've ever seen it brought up in the new vs. used arguments, not that I've ever really delved too far into them. Developers seem to be most vocal on the grounds of, "when someone opts for a used copy over a new copy, developers don't see a profit for the sale and therefor it is bad." That's a pretty cut and dry way of looking at it. Here are two articles suggesting a deeper look at how things like this work.

This first one isn't about games, it's about books. From what I can tell though, no one's done this thorough of research regarding used games so it's still a good read since the markets are very similar to one another:

http://www.nytimes.com/2005/07/28/technology/28scene.html?ex=1280203200&en=33765024cbf62d4c&ei=5090&partner=techdirt&emc=rss&_r=0

And then pretty much the only thing I found supporting this type of idea from a gaming standpoint:

http://www.gamerswithjobs.com/node/111869

The more far-reaching advantage is tied to trade-in credit. GameStop said in its March 22 earnings call that it generated $2.6 billion in sales for used games and accessories. Wedbush Securities analyst Michael Pachter estimates the company also paid out around $1 billion in in-store credit for trade-ins. "That billion dollars is used as a currency to buy new games," Pachter said. For perspective, the NPD group estimates total sales in the industry at roughly $16.6 billion, which means GameStopís $1 billion of trade-in currency equals roughly 6% of total sales. "Most people who trade in used games donít turn around and buy used games," said Pachter. "They trade in used games so they can buy new games."

Itís not a generalization: GameStop's own data bears this out. Speaking to the Dallas Morning News in August 2009, GameStop CEO Paul Raines provided statistics in defense of the used game market, stating that 70% of trade credits from used games immediately go into sales of new software. On top of that, only 4% of used games sold by the retailer have been released in the past 60 days, thereby having the chance to cannibalize new software sales.


I just thought it was an interesting way looking at how, in the big picture, it's not laid out in plain sight at all whether or not used games hurt the sale of new games.
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#2ViewtifulHustlaPosted 2/8/2013 4:32:15 PM
I'm more inclined to purchase a new game knowing that I can resell it easily. If I kept every game I ever had, christ, I'd have no living space.
#3glory of power metal(Topic Creator)Posted 2/8/2013 5:29:03 PM
Yeah, that's part of it. If used games work similar to used books, removing the resell opportunity means that people will be less incline to buy new. And as that second article states, it's statistically proven that a percentage of GS trade-in value goes directly to new purchases.
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glory of power metal is an anagram of Lame Flowerpot Orgy. ~ kirbymuncher
#4qwertomanPosted 2/8/2013 5:38:45 PM
I am willing to pay more for a new game if I can resell it afterwards. I've never actually sold a game, but being able to do that has a value to me.
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"So take it out. I'm thristy boy!" - Ikuza
#5kcypher2000Posted 2/8/2013 6:21:50 PM
It hurts sales more than it helps and if you believe otherwise you are just delusional. Look at the rest of the money that the developers never get. People whine about used games but the
Pc and mobile market and dd sell fine without them.
#6RyuuHou25Posted 2/8/2013 6:24:42 PM
kcypher2000 posted...
It hurts sales more than it helps and if you believe otherwise you are just delusional. Look at the rest of the money that the developers never get. People whine about used games but the
Pc and mobile market and dd sell fine without them.


You're delusional if you think people that buy a used game would buy a new one if the used option was not available.

PC/mobile market has rampant and widespread piracy.

DD is not a major seller actually, physical copies still outsell DD by extreme numbers.
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#7qwertomanPosted 2/8/2013 7:07:18 PM
Pc and mobile market and dd sell fine without them.

No they don't and that's proof that banning used games is a stupid idea that will hurt the industry.
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"So take it out. I'm thristy boy!" - Ikuza
#8glory of power metal(Topic Creator)Posted 2/8/2013 11:49:53 PM
bump
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i7-950 3.4GHz | GeForce GTX 285 | 16 GB DDR3 | NEC 2490WUXi 1920x1200
glory of power metal is an anagram of Lame Flowerpot Orgy. ~ kirbymuncher