I see a lot of back and forth, but I never feel like people list the actual reason that used game sales in the current form is killing the industry (Gamestop 100% profit - publishers 0%).
I figured I'd give it a shot and try to explain why I think used game sales are bad...
Used games sales are killing the industry because they are pushing the publishers to invest in fewer and fewer new original IPs and take less risks. This is because every high budget game is designed to push day 1 sales and sell as much as possible before trade-ins start to happen.
It’s no secret that gamers are more likely to impulse-buy franchise titles like Call of Duty or Halo on day 1 in comparison with lesser-known new IPs or genres that aren't as popular. Since devs know that used games sales are going to cut in to their revenue pretty much immediatly after the game is finished, single player games and ideas are being phased out, pointless multiplayer is being tacked on, on disk "DLC" is being held back, and a lot of "AAA" games are designed with a clear formula in mind to reproduce previous day 1 success in sales. Since the publishers and devs are completely cut out of the used games sales loop in terms of revenue they have no incentive to invest in to games that are different from the day 1 sales "blockbuster" action shooter.
So the end result of the Xbox One reversal of policy and used game sales continuing to function as usual is that for the next 8 years we will see more micro-transactions, more instances of incentivised DLC and more complementary goods to ‘enhance’ the game so you don't trade it in. Single player will be next to dead in terms of creativity in AAA games while multiplayer will become the main focus high budget titles. Destiny, Titanfall, COD, Halo...plenty more where that came from. Expect a lot of episodic content too that gets unlocked over time.
Do consumers win at the end by being free to trade games freely and openly without publishers getting a cut? If you value your content I am not so sure that they do... You may pay more in the long run if you can't trade games but you will get higher quality and more varied content in return. You will also see cheaper games to begin with...having different companies competing for your dollar pretty much guarantees that the prices would go down as their bottom line is improved.















