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The issue isn't the preorder system itself but how it is treated. Preorders should be treated as votes of confidence of the absolute highest degree, nearly on the level of KS backing. It should be based on past experience with the company whose product you are preordering, their consistency, what information is available, etc etc. All information should be considered thuroughly, especially the track record portion, before a preorder is made. And if you get burnt by a preorder, that should have a heavy, heavy impact on whether or not you preorder from that company next time. The issue is that while some may do this, most take the path of "that trailer looked cool! I'll preorder!" without taking the time to realize that ANY GAME can look cool in a trailer, especially with the heavy CG abuse going on in the industry right now. And it's these types of preorders - the ones driven by over-hype culture - that are starting to decline, because such preorders are quite common with the big annual or semi-annual blockbusters.