December 4, 2008 12:33 PM PST

Should we stop the sale of used video games?

by Don Reisinger
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Used video games play an integral part in the lives of the gamer: instead of spending $60 for a new title, they can save some cash and get the same game used at a discounted price. But from a developer's perspective, every used game that's sold yields no revenue, and that has created a divide between publishers and gamers over whether or not used video games should be sold at all

Two Atari executives--CEO David Gardner and President Phil Harrison--shared some gripes about used video game sales earlier this week at an Atari event. And as far as they're concerned, used games are hurting us all.

"Second-hand game sales represent consumer choice and desire," Gardner said at the event. "Obviously, it has economically been extremely painful for the industry (and) the publishers don't benefit."

Harrison echoed the CEO's sentiment saying, "there's no doubt that second-hand game sales have a macro-economic impact on the industry and a lot of people get miserable about it."

Harrison went on to say that his company is focused on developing more games with incentives like post-release content built-in that discourage used game sales and coax more owners into keeping their games.

I'm all for incentives that increase a game's viability, but simply adding more post-release content to a title doesn't strike me as something that will kill used game sales. In fact, I don't even understand why the video game industry would want to kill the sale of used video games.

Developers may not make money off used games, and it's easy to measure the impact that has, but what about the hidden revenue each developer makes because of used games? Doesn't it stand to reason that if more video games are available at a discounted price, more people will buy games, and thus be more inclined to pick up more? And doesn't it make perfect sense to believe that those who are just getting into gaming would be more likely to buy cheaper titles to test the industry out before they spent $60 on a new game? More gamers means more revenue for all parties.

There's obviously no way to measure the revenue each developer sees from the sale of used games, but I think it's substantial. Some people buy used games because they're not sure about a title and they just don't feel they want to spend $60 to find out if it's worthwhile. But maybe after they play, they realize that the game is outstanding and once the developer offers up a sequel, they're first to stand in line at Gamestop to pick a new copy up on launch day. Sure, it would have been nice for developers to collect cash off both iterations of the game, but without that used title, they wouldn't have incurred any revenue from that gamer.

But there's also one more important point that should be made in the defense of used games: they were new games once. In other words, someone bought the game new and decided that once they were done playing, they would return it to Gamestop or another video game boutique to get some of their money back. In essence, the consumer has found a way to spend, say, $30 for a game instead of $60 by knowing they will sell it back once they've completed it. And in the process, developers have created a compelling argument for consumers to buy new games--the possible return of some of that cash.

It's easy to look at raw used game sales figures and say that developers are missing out, but I think that line of thought is too simplistic. The used games market provides value to the consumer, makes them want to own more titles, and creates an environment that reduces the cost of buying a game. And in the process, it increases the number of gamers worldwide.

Call me crazy, but I think that's something we should all celebrate.

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Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.

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Add a Comment (Log in or register) Showing 1 of 2 pages (26 Comments)
by fazalmajid December 4, 2008 3:19 PM PST
I'm sure Detroit would love to ban sales of used cars to stimulate demand for new ones. And I'd like a pony. Dream on...
Reply to this comment
by drfrost December 5, 2008 2:31 PM PST
The software industry is already trying it's hand at copy protection that ends the sale of used games (look at the copy protection scheme on Spore that only allows a limited number of installs).
by davidwb45011 December 4, 2008 3:27 PM PST
What's next? Detroit denounces used cars? Ryland denounces used houses? eBay is sued down by WalMart? *** makes the game industry special? Oh, I understand...their inability to create a game that people are willing to spend $60 on sight unseen.
Reply to this comment
by BK216 December 4, 2008 4:02 PM PST
I recently started a habit of buying used games that I loved from years back. Seeing how cheap these great games are (like Devil May Cry 3 for $12) I would say NO
Reply to this comment
by gggg sssss December 4, 2008 4:22 PM PST
Hey, lets ban used book sales ( good bye Amazon. ) What a load of self serving crap. Of course the auto dealers had previously thought they could solve the problem with planned obsolecence. Cars that rusted out on the same day the warrantee expoired. See how well that worked for them.
Reply to this comment
by techman21 December 4, 2008 4:22 PM PST
Maybe they should focus on making games more re-playable. If you've gone all the way through it and there's no challenge left, no interest in ever playing it again, why keep it?
Reply to this comment
by malmedia December 4, 2008 4:32 PM PST
Ditto
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by hawkeyeaz1 December 4, 2008 4:43 PM PST
It is a consumer's right to sell/buy used [games]. It doesn't hurt the developer, even if the games are given away. And, yes, I would agree, it does actually benefit the developers. Apparently (many) developers associate anyone who doesn't come to them with cash in hand with being a pirate.
Reply to this comment
by veevslav December 4, 2008 5:22 PM PST
Developers want to control every aspect of the gaming experience. Gamers are not allowed to say what they want. They have no choice. They will want what the developer says they will want.

As to being a pirate, most developers seem to think everyone is a pirate, cash in hand or not. Just look at the way EA has treated its customers.

I agree with techman21. Make the game worth hanging onto as a way to discourage used game sales. I still have two copies of Starcraft and the expansion Broodwar. I still play those games. I bought Fallout 3 on release day and am Giving it away to a friend as a Christmas gift because the ending is so lousy. 200+endings? Not really, just a few different pictures without the words.

Bottom line, used game market forever. Ban heavy DRM. Keep Rentals alive.
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by karpenterskids December 4, 2008 9:21 PM PST
Amen, brother. ;)
by stryder302 December 4, 2008 11:45 PM PST
Well they need to think about what a gamer does when he sells that game. You think he takes the money and goes out to the movies? No he walks right over to the shelf picks up another game and puts the money he got back off his original $60 game on a NEW $60 game. Most gamers who sell games are simply recycling them and buying more new games.
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by universeman December 5, 2008 5:47 AM PST
Cut off used game sales and watch pirating go through the roof. Digital content publishers never seem to learn that lesson.
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by AshDK December 5, 2008 9:21 AM PST
If all games were downloaded via the internet, then they couldn't be sold used, could they? I love Steam. I can install a brand new system and tell Steam to download all the games that I previous bought. Saves me a ton of time from having to reinstall plus I don't need to find the media every time I want to play a game. Steam is not perfect but I love not having media..........
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by mssoot December 5, 2008 10:22 AM PST
These guys are executives? No wonder Atari went down the tubes in the console market, hiring fools like these. Dump these salaries and maybe they cou
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by mssoot December 5, 2008 10:23 AM PST
These guys are executives? No wonder Atari went down the tubes in the console market, hiring fools like these. Dump these salaries and maybe they cou
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by egghead1619 December 5, 2008 10:32 AM PST
All I hear from these game developers and producers is, "Whaa! Our multi-billion dollar business is hurting due to a couple million in used sales!" The executives of the industry have become blinded by their insatiable greed and will do anything just to strangle another penny out of their customers. They have made their player bases out to be criminals through the use of overly restrictive EULAs, found ways to reduce the functionality of legitimate game licenses in the name of 'fighting piracy,' attacked up and coming game developers and stolen their ideas claiming 'copyright infringement,' and have even begun trying to castrate their sales by working on ways to eliminate the resale market in utter defiance of the well established First Sale Doctrine. These executives think they know what's best for the business, yet they consistently draw negative attention to their products and turn a blind eye to the lost sales due to their practices while incorrectly pointing to 'piracy' as what's hurting their multi-billion dollar business. I'm not saying we should stop buying or making games, I'm saying we should throw out these executives without hesitation and penalize them for the harm they have inflicted on their company and customers.
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by jdzions December 5, 2008 11:13 AM PST
This is a legal non-starter, and the "game industry" knows it. But they can use it as a wonderful stalking horse to hide something else they want to do. While everyone pays attention to this doomed-to-fail attempt to challenge a couple hundred years of case law and the "First Purchaser" doctrine of Copyright law, they get some other egregious and consumer-unfriendly legislation passed.

Ignore this particular effort; it has no possible legal basis. Instead, look for what other legal games they're playing.
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by Magicland December 5, 2008 11:46 AM PST
Here's a thought, come out with some games that people can afford, say in the $20-$30 range, and watch sales go through the roof. Am I going to spend $15 on a used game when I can buy it new for $20? Not likely. Am I going to spend $20 on a used game when I can buy it new for $60? Every time.
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by Kainchild December 5, 2008 1:43 PM PST
What's next, they going to ban renting games to? How greedy can they get? People who are selling those games still bought them and have a right to resell them back to anyone and the stores that buy them have a right to resell them to others. This whole thing these guys are saying is a pure unadulterated example of greed.
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by Edgar521 December 6, 2008 9:22 AM PST
I agree. I think used games sales are healthy for the industry.
Reply to this comment
by ledhead1962 December 6, 2008 10:03 AM PST
Whine ,whine ,whine, moan ,moan ,moan. You made how much as an industry last year? They bring out new platforms every five years or so making the games somewhat obsolete on a regular basis anyways. They should be a little more compassionate for their market or their words will bite them in the a$$ (see music industry and auto industry). What is about being an executive that makes people become so unthinkingly slavish to profit at any cost (even alienating your revenue base)?
Reply to this comment
by  Brian December 8, 2008 10:26 AM PST
You can't stop used games anymore than you can stop used cars!

Get over it - people want to save money!
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Showing 1 of 2 pages (26 Comments)
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About The Digital Home

Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.

Don writes product reviews for InformationWeek and is a regular contributor to Processor Magazine. You can visit his personal site at DonReisinger.com or if you would like to email Don with questions or comments, drop him a line at CNETDigitalHome@gmail.com. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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