http://gamer.blorge.com/2009/06/30/used-games-sales-good-or-bad-for-the-industry-and-do-we-care/

There’s a debate raging at the moment about whether used game sales are harming the industry or not. Many game developers and publishers, such as EA, think they are, but many others do not. Michael Pachter may not be most gamers’ favorite person, but on this score he’s come out on our side. I knew he was a good guy really.

Video games, like every other form of entertainment media, are ripe for the second-hand market. Once you’ve played a game through and got everything you want out of it, the obvious thing to do with it is sell or trade it in. While if you’re buying an older title, buying used can often save you a tidy sum of money.

The games industry itself isn’t a fan though, and you can, on the face of it, understand why. It considers used game sales as lost opportunities, that each person buying a game second-hand is a person who isn’t going to buy new, and consequently isn’t putting any money into the industry.

Pachter has a different opinion on the subject, and in a report published by Wedbush Morgan, where he is an analyst, Pachter explains why he actually think used game sales are an important element of the industry and pusher of new game sales. According to GI.biz, he said:

The vast majority of used games are not traded in until the original new game purchaser has finished playing - more than two months after a new game is released - typically well beyond the window for a full retail priced new game sale.

If trade-ins occur at GameStop, they should position the trade-in customer to buy more new games than he/she would otherwise normally purchase. Because the average used game value is around 20 per cent of the new game price, we think that used game trade-ins fuel incremental sales of over six per cent of total new game sales, suggesting that the cannibalization from the used game ‘push’ is more than offset by the benefit from used game currency.

Pachter also revealed that the used game sales sector of the market now accounts for around 100 million units per year in the U.S. alone. That equates to around one-third of all games sold and provides a revenue stream of around $2 billion annually.

If Pachter is correct in what he says then the games industry should be very thankful for the second-hand market because it gives gamers more cash in their hand to buy new games. On top of that, there is the fact that most people buy used titles that they just weren’t keen enough to buy at full-price. So, rather than taking away from sales figures, it’s an important element of keeping the industry healthy.

I love the fact that Pachter has effectively pulled the rug out from under the publishers argument that the used games market is harming the industry. It clearly isn’t. But even without this reasoning, isn’t it a consumer’s right to trade or sell a product that, at one time, was bought new? I’m just grateful I don’t live in Belgium.

Pachter is on a roll. So what do you guys think? does he have a point or do used games sales only harm the industry.

I care, and they are bad for the industry.

I dont agree with buying used games unless there isnt any other way to get a certain game, I am happy to support the developers of games that I buy.

yup. It is. Think. Those games you buy used could've bought a new one. The orginal publisher doesn't get a cent. But Gamestop get's all 100% of it. Which is hard on the small guys

I agree with the two above posters it does the gaming industry no good.

I care, used game ruin the industry. I hate what gamestop or any other used game dealers are doing.
I only buy new games to support the industry. I only buy used if its a bad game or can't find it anywhere new/

I really don't care about buying used games at all. Used games was purchased once and made money to the developers, and they are very important to retailers and for us when we want to buy an older game. You can find Uncharted 1 for 20 bucks at eBay, while the game brand new sealed cost 40 bucks, half of the price, great deal for me and the seller that don't have why stay with the game. Piracy is really a completely different thing,though.

I disagree with pachter (shocker). His math and reasoning seems poor. If somebody trades in three games to buy one game, that means the publishers are out two new games, the profit of which is now going to gamestop instead of the publisher. Who's signing pachters checks? Or did he just get a vacation paid for by gamestop?

Or how about this quote

Pachter also revealed that the used game sales sector of the market now accounts for around 100 million units per year in the U.S. alone. That equates to around one-third of all games sold and provides a revenue stream of around $2 billion annually.

That revenue stream is entirely going towards used game stores, not game developers. So why is that a positive thing? It's good for the "gaming industry" if you broaden that definition to include all retail outlets, but is terrible for the industry if you narrow that to the people actually making and publishing games.

Used games ruin the industry?

Used DVD's ruin the industry
Used cars ruin the industry
Used TV's ruin the industry

In fact, people shouldn't be able to sell anything, ever. Makes people think twice before buying junk with what the'll be stuck with forever.

Agreed?

Ofcourse it is not good for the industry; But I am egoistic and care more about my money then their money and prefer a company goes bankrupt then I do.