| theprof00 said: 1. "During the course of the year the company made $1.6 billion from sales of new hardware, and $113.6 million in gross profit; $4.04 billion from new game sales, of which $839 million was profit; and $2.6 billion from second-hand sales, of which $1.2 billion was profit" Gamestop makes roughly 69% more profit on 65% smaller sales, meaning that adjusted, (1.968B) USED games are worth roughly 43% more than new games. ie; they pay you 43% less than your game is worth. 2. There will NEVER be NO USED GAMES. What there will be, is an "activation cost". This will result in a short term drop in value of used games market based on the largest used dealer, gamestop, as they try to defer lost profits by paying less. Gamers will gravitate toward ebay and craigslist. Then trade-in values will go back up. Prices for buying used games will instead go down, as the market shifts the price ratio to compensate for the "activation cost" and trade in restrengthening. Your idea about used games only being 10% is extremely hopeful, and even so, if that 10% turns into new games, you're looking at a huge increase in developer revenue. Additionally, the factor of digital distrubition only increases the profit margin of a game's sales. |
1. Yes, that's why I've only assumed (conservatively) that 1/3 of used game revenues finds its way into the hands of consumers. Most people sell to stores, not directly to other people, and they get a rather small portion of the value.
2.I understand the "activation" cost, but the fact is it's a move against the used games market. They want to destroy it for very flawed reasoning. The main point to be made is this: You cannot make the "pie" bigger, you can only increase your slice of the pie. And there's really not that much more to gain, especially considering the nature of second-hand markets. (the money IN that market tends to stay in that market and fuel that economic activity)
And finally, no, that 10% isn't "hopeful" it's NPD numbers from 2009 I believe. A bit old, but it's what I could find. It may have shifted to 15% or so since then, but even then, it's not nearly enough for gamers to see any real benefit. (again, take into account the movement of money that creates that wealth that the publishers envy so much)
If I have a choice between PC or console, I go console, because I know I can sell it later. I'm buying a product, I should be able to do what I want with it. And I should never have to worry about somebody trying to lock me OUT of using a product I LEGALLY bought. That's ridiculous. It's a product like any other, and should be treated as such.
