Whatever happened to the used games problem that was destroying the industry?

[burninmylight]

bdbdbd said:

LurkerJ said:

Most of you have figured out why it's no longer a problem. One reason that hasn't been mentioned so far is the rising barriers to entry.

"Barriers to entry are the existence of high startup costs or other obstacles that prevent new competitors from easily entering an industry or area of business." that means it's harder to start a company and become the next EA or Ubisoft these days, so the top 4 get less competitors eating their cake.

This is also why the big publishers play the blockbuster model and spam the market with shovelware. This is also the opposite to Nintendo's strategy on DS and Wii (that were to lower relatively the barrier of entry). One of the explanations why the big third parties didn't like Nintendo that much.

Two excellent posts.