GameStop: Publishers can make money on used games through DLC

[mike_intellivision]

Some things to think about.

First of all, developers need to make games that people want. Some do a very good job at that while others complain because their experiences are not not as desired by the gaming public.

The used game should not be sold argument means that developers/distributors want to retain ownership rights to the game and have you pay for a license to use. While that model has worked with computer software, it has not been well-received by gamers.

So what needs to be done. If you go to a licensing model, then prices cannot be supported at their current levels and sales will go down because people will often be hesitant to take a chance. (It should also be noted that computer entertainment software is often cheaper and sometimes much cheaper than console games because there is no disposal value. Similarly, most computer titles do not sell nearly as well as their console counterparts -- with MMOs being the exception).

Digital distribution is at its essence a variant of this. The elimination of the need of physical games SHOULD reduce costs but often is just turned into a convenience cost (meaning increased profits for the gaming company and less for their money for the gamer). Similarly, locking a game to a single console (for which Sony holds a patent and Ubisoft's on-line required could also be used in this manner) is the most onerous form of this and would eliminate any disposal value of the software (short of the inevitable "cracks" that would be developed to circumvent this).

Another option is the DLC model. However, as has been stated, DLC itself is not enough to change people's behavior. Many a gamer traded in Grand Theft Auto IV after they had completed the main game before the DLC was released. The value-added model may work, if this is something that would normally be sold and not something cut out of the game just to reduce disposal value. (It would do that -- and would move closer to the computer gaming model which means lower prices, lower sales, and probably lower profits).

But while gaming companies may complain, I have never heard of publishers trying to eliminate public libraries or used book stores. And movie studios make deals regarding the renting of their products. Instead, they are acting more like the recording industry, demanding more and more money for everything. But given its current state (stalled sales and stale products), that is an industry that should NOT be emulated.

Finally, given the price difference between console games and computer games, maybe gaming companies have already figured into their price structure the second-hand sales. But they still want more. Such is the work of greed.

Mike from Morgantown