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Forums - Gaming - Why do people assume sales will go up without second hand sales?

ironmanDX said:

I'm not even going to reply to you after this. I can't see a point. I didn't actually mean that, it was typed under frustration of that statement. 3 out of... whatever that was isn't concrete at all. I also have no "idea" that those companies went out of business because of used games, I said it's a factor! JEEZ DUDE! The list I showed is certainly more compelling argument then just game shutting down or the 3 devs pulled at random. Read this,

  • Microsoft unveiled its eighth generation console, the Xbox One, and said that it will charge pre-owned fees for used games installed on the new console.
  • In comparison, Sony has allowed used games to run on its eighth generation console.
  • GameStop earns more than 45% of its gross profits from used game sales.
  • Although new consoles are expected to increase inventory and grow used game sales, Microsoft’s console could cut into almost a quarter of the potential sales of the retailer.

GameStop, the US retailer for used and new games, saw its stock price drop by 19 percent when Microsoft unwittingly announced its plans for used games for the Xbox ONE. Although the highly anticipated console will help revive hardware and software sales, Microsoft’s decision to charge “pre-owned” fees for used games that are installed on the new Xbox One will cut into GameStop’s main cash cow: used video game products. (Xbox One Makes It Difficult to Borrow Video Games With ‘Pre-owned Fee’) The retailer earns almost 30% of its revenues through the sale of used video games. Higher margins on this revenue stream make it the biggest contributor to its profits, with over 45% of GameStop’s gross profits coming from used video games.

Stock dropping after a console reveal for a retailer? Riddle me that friend.

You said major factor if anything. That's your side, I don't believe used games is anyway a major factor for when game studios close, that's my side, not in the modern age. Maybe 20 years ago when piracy was harder sure. A games studio could be 5 people or even a guy in his bedroom, now it's a multimillion dollar production and if it fails...

I'm never going to argue against you about Gamestop's money making ways. Used games makes a lot of money for them but at the same time, full game sales makes them less, digital sales none at all (do they sell PC games on their website?). Used game sales are needed more than ever in the modern gaming age if high street games companies need to stay afloat. This stock drop was based on the simple idea that a major factor in Gamestops income could be gone. No riddle, just understandable.

MS did suggest their solution, a 'system' which can be used to log game on and off from a user in retailers. They said this was done with retailers, which I find funny to start with, MS going to gamestop (as an example) and saying 'We are doing a complicated used game feature that will affect your profits, are you okay with this?'. This doesn't seem right, as Gamestop would say 'no'.



Hmm, pie.

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I dont think many people other than those in the industry feel that way. I think most entry level economics classes will teach you that the used market helps drive the new market. Of course Steam seems to prove otherwise.



Getting an XBOX One for me is like being in a bad relationship but staying together because we have kids. XBone we have 20000+ achievement points, 2+ years of XBL Gold and 20000+ MS points. I think its best we stay together if only for the MS points.

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