Geohot hate piracy and stuff

[zarx]

Akvod said:

zarx said:

I will read that later but I want to address 1 thing now when a retailer buys a copy of a game they pay for it then they try to on sell it to the public when someone buys the copy all the money goes to the store (they have already given the publisher money) and if the publisher is lucky the retailer will then order more copys of the game getting the publisher more copys. that is why most publishers will report sold to retailers in their financial reports because that is the transaction they actualy get their money from the only reason a publisher cares if the public actualy buys those copies is if the retailer orders more copies or not.

If that's the case, then no product, that is expected to sell a lot, should fail. The retailers have paid fully and completely for every copy. It is only a matter of expectation and ordering then. Stock piles of unsold products or over ordering a product only hurts the retailers and not the creator. Which we both know is not true (ET for example). Like I said, it'll be such a risky business if Best Buy buys the product completely, and our modern economic system bypasses that risk with our system of retailership.

well like I said the publishers would only care if the retailer refused to order more copies or other titles because of the low sales, or in the rare case that it sells so bad that the retailers try to make the publisher buy back the stock like what happened with ET

But the publisher will get its money for every product shipped. You hear fanboys bickering about shipped vs sold. If publishers and devs automatically get their money from shipping products, all they have to do is hype up every product and fool the retailers to buy a lot of copies.

It also makes retailers worry about ordering large quantities, as the burden is completely on them.

It also then breaks trust completely, because retailers will be so scared shitless with every failure, that eventually we'll have massive supply shortages.

By distributing the risk of retailing, cost of retailing, and profit from retailing to both creators and retailers, we create a system that gets rid of fear and promotes retailers to buy what they expect to sell, and not order less than what they expect out of fear of being wrong and being completely screwed over instead of partially (the opportunity cost of occupying shelf space with better selling products).

and that is what caused the great video game crash retailers were so scared of being burned that they almost never ordered any new games. today retailers try and find a balance between ordering to much and not meeting demand they closely monitor hype to try and gage demand for products if they order to few they risk losing sales to a competitor to many and they may be forced to sell them at a discounted price even sometimes bellow what it cost them to clear shelf space for new titles. I didn't say it was ideal but from what I know that is how it works  only if the publisher didn't deliver on what they promised can a retailer sell the copies back to the publishers.