Used Games
Two points, 1 after a few year the developer stops production of a game. If you wanted to buy Mario Kart 64 new right now, Nintendo would not sell you a sealed copy, even if you had $50 to fork (new price in 1997).
2. If the game is new, the amount of used copies available solely depends on the quality of the game. If the game is short and bad, then people who are unsatisfied with the game sell it asap for the largest refund possible and someone else gets a chance to play that game. If the game is good, long, and people keep it, then the demand will be high enough so that the used price will be nearly the new price and the quanitity will be limited. This is different from piracy because someone has to be unsatisfied with the game before a used copy is available. The developer had a chance to sell the game, sold a copy, and how long that person decides to keep the game for before giving it to his friend making him unable to play it anymore is entirely based on how appealing and good the developer made the game.
Either way, there are limited copies of the game, and for every copy available to play, there was a sale at some point (the developer did make a profit). How many used copies circulate is dependant on quality and longevity. After all many people keep good games even if they don't play them anymore.
Rented Games
This is not a purchase. People who rent these games, do not own them, and never will. They pay for an extended practice to see if they like the game, to see if it's worth buying. Again the number of people who end up buying the game is depandant on quality, and the more popular the game, the more rental copies a company will buy to rent out. So sales are made, and the developer made a profit, and in the end they did sell $60 games to people who would normally not have paid $60.
This is equivalent to two friends buying a game together and letting the other borrow it equally. 1 copy was sold to two people who combined were willing to pay the full retail price, and had this not happened, no game would have been sold.
Companies like BlockBuster and Rogers buy a number of games which reflects the number of how many people will rent it at a fraction of cost. The more people sharing, the more units sold.
Online Piracy
There is no garentee any copy of the game is sold. Someone may have ripped a game off a rental. The price of the game is zero dollars, and supply is infinite, so there is no cost to demand ratio. If more people pirate, no more units of the game are sold. This never translates into a profit for developers except in cases where honorable people are so happy with the game, they purchase a legit copy.
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See with rentals, a game is still sold, it's cost is just split between a number of renters (usually 10 or so) and any extra renters give their profit to the company in charge of this. Not illegal, just smart, and the more popular the title, the more units are bought for rental to meet demand, and regardless, some of every rental is used to pay for the base purchase. Used games too increase demand and overall sales because someone bought the game and buying it from him means that that game is being enjoyed (like it's suppose too) and that the original gamer has more $$$ for new games. After all when a game is sold, it's purpose to to keep the owner entertained for as long as they see fit, I still play Mario Kart 64. However downloaded games never alter supply and demand, and only in small numbers do demo'ers buy the games they play.
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