Are used games killing the market?

[kn]

Bodhesatva said:

Just out of curiosity, why can the Jewelry, Movie, Gun, Book, Car, Music, and Appliance industries all thrive with bustling second hand markets, but games cannot? Given that practically every other comparable industry has a used saler market they live in harmony with, it seems like the problem is the Games industry, not second hand sales.

Here, let me lay this out with a math-ish analogy. If you see Industry [A] is losing money, and you pinpoint Issue [X], Issue [Y], and Issue [Z], you might claim that Issue [Y] is causing the losses. Without any further information, making conclusive statements isn't possible.

However, if you see Industry , Industry [C], Industry [D], Industry [E], Industry [F], Industry [G], and Industry [H] are doing fine, even though all of these industries also have Issue [Y], then it's fairly clear that Issue [Y] is not a dominating factor.

And again, that's essentially the place the gaming industry is in. Every other industry can not only survive but often thrive with a second hand market. So why can't video games? Either video games are super special and it's not fair to compare them to any other industry in the world, or there are other predominating factors which are much more significant and are the real cause for publisher's struggles. I'd propose again that the latter is more likely.

 

You are talking physical goods vs. Intellectual Property.  A washer and dryer continues to provide value until it dies.  Most video games are playable only so many times before it is time to move on...

As far as books are concerned, I would most certainly say that used books cut into new book sales.  I am an avid reader... Multiple books a month.  Why buy new when I can go to Half Price Books and get stuff quite a bit cheaper for the same experience?  I actually buy hard backs when I can -- often cheaper than "new" paperbacks and keep them in my collection.  Why?  Because new they are ridiculously expensive.