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Old May 11th, 2012, 06:54 AM   #1: [Thread] [Post]
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Blockbuster: Games retail would not survive without pre-owned

Quote:
Originally Posted by MCV
Specialist games retailers cannot survive without second-hand, says Blockbuster.

The firm’s UK commercial director Gerry Butler has hit back at trade-in critics, and told MCV that the current new release business model is broken and in need of a radical overhaul.

“If you’re a specialist you need certain margins to run your business,” he said. “When you are in a commoditised industry, those margins evaporate.

"And supermarkets use games as potential loss-leaders, so specialists can’t survive. That’s why there are less games shops than there were three years ago. Without pre-owned, those companies cannot survive.

“When the market was growing, nobody spoke about trade-in. It didn’t matter. Everyone was hitting their numbers. But as soon as someone starts missing the numbers, they are like: ‘Well this trade-in is killing us. How do we stop it?’”

Butler says the key to hitting the numbers again is by changing how video games are sold into stores.

“I think the distribution strategy employed by the publishing world is broken and needs to be fixed,” he added.

“It is the whole way the industry is structured. Just think about consumer brands like Coca-Cola and how they are built. You create huge pre-awareness and then make sure you have full availability in the marketplace.

“In video games, the publisher has to pay substantial royalty payments to the platform holder upfront, which makes the cost of games high. Then they go to the retailer, and the retailer has to guess the number of units it is likely to sell. Then the marketing begins, and it might turn out we don’t have any stock left.

“It’s not a good situation if the TV ads are running and you’ve no stock.

“Let’s come up with a model that is fair and equitable and long-term and sustainable. This current model is not long-term and sustainable.”
Source...

I think we need a singular thread for this subject now with so many views on everything. I just need to get all the articles together...
 
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Old May 11th, 2012, 06:58 AM   #2: [Thread] [Post]
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Hit the nail on the head.

People wouldn't suddenly start buying games for full price; they just wouldn't buy them.
 
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Old May 11th, 2012, 08:32 AM   #3: [Thread] [Post]
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I have nothing against the idea of used games, but I do believe that a portion of the sales should be going to the publisher/developer.
 
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Old May 11th, 2012, 11:02 AM   #4: [Thread] [Post]
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Quote:
Originally Posted by Rabid View Post
I have nothing against the idea of used games, but I do believe that a portion of the sales should be going to the publisher/developer.
I don't disagree, necessarily, but just to play Devil's advocate: why?

Nothing else works that way. If you buy a pre-owned car...unless you get it off the same lot it used to sit on, that car maker isn't getting paid again. If you buy pre-owned DVD's, that studio isn't getting paid again. If you buy pre-owned clothes, furniture, etc., those manufacturer's aren't getting paid again.
 

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Old May 11th, 2012, 11:26 AM   #5: [Thread] [Post]
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I'm gonna go ahead and say that companies should make their games more replayable if they don't want them being traded in.
 
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Old May 11th, 2012, 03:32 PM   #6: [Thread] [Post]
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Quote:
Originally Posted by Ceth View Post
I don't disagree, necessarily, but just to play Devil's advocate: why?

Nothing else works that way. If you buy a pre-owned car...unless you get it off the same lot it used to sit on, that car maker isn't getting paid again. If you buy pre-owned DVD's, that studio isn't getting paid again. If you buy pre-owned clothes, furniture, etc., those manufacturer's aren't getting paid again.
Sure, I'll bite.

Because video game developers really only get one shot at making money, the initial new-game purchase. Car makers/Auto dealers get several opportunities with replacement parts, repairs, oil changes, and other maintenance. DVD sales are basically icing on the cake for most movie studios who arguably make the majority of their profits from people seeing films in the movie theaters. There are a lot of people (like myself) who won't buy things like furniture or clothing used (you just don't know what people did to this stuff prior to you owning it), and I would argue that what most people pay for clothing/furniture and how much clothing a lot of people own, I don't see anyone in that industry hurting anytime soon.

I honestly don't see the harm in used game retailers throwing a couple bucks at the publishers/devs for each used game sale. It really could only help the industry, and maybe, just maybe even lower the cost of new games (which I'm all for).

Quote Rabid edited at 03:32 PM (May 11th, 2012)
 
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And in this respect mankind has suffered a fundamental debacle,
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Old May 11th, 2012, 04:53 PM   #7: [Thread] [Post]
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That's not the way a "used" licensed product works. I should be able to buy and sell anything legitimately published and purchased at will as much as I like.

The game developer has already been paid for it. Period. If they don't want people to sell their games used they need to make them more fun to replay. If they want people to buy them on day one they need to make them more desirable. If they sell me something and I get tired of it I should be able to sell it to whomever I want at whatever price we agree on.
 
 

 
Old May 11th, 2012, 08:16 PM   #8: [Thread] [Post]
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Who would have thought Blockbuster would have someone who knows how businesses should be run? >_>
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Old May 12th, 2012, 02:48 PM   #9: [Thread] [Post]
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Quote:
Originally Posted by Rabid View Post
Sure, I'll bite.

Because video game developers really only get one shot at making money,
Minus the DLC-packs, online access codes, and the sequels with DLCpacks and online access codes?

And as far as clothing designers not "hurting" any time soon...neither is Eric Hirshberg.
 

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Old May 12th, 2012, 03:20 PM   #10: [Thread] [Post]
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Quote:
Originally Posted by Ceth View Post
Minus the DLC-packs, online access codes, and the sequels with DLCpacks and online access codes?

And as far as clothing designers not "hurting" any time soon...neither is Eric Hirshberg.
DLC/online access codes are a response to used games sales.

I can honestly say that that man is undeniably over-paid.
 
Mankind's true moral test,
is fundamental test
which lies deeply buried from view,
consists of its attitude towards those who are at its mercy.
And in this respect mankind has suffered a fundamental debacle,
a debacle so fundamental that all others stem from it.
 

 
Old May 12th, 2012, 05:16 PM   #11: [Thread] [Post]
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Quote:
Originally Posted by Rabid View Post
DLC/online access codes are a response to used games sales.
True...but there's a case to be made that they're overpriced, and in addition to the already high prices of new releases (let's not forget the "limited editions," "collector's packs," etc.) are just gouging the consumer for sub-par games that have limited replay quality.

This isn't always the case, but is a lot more prevalent than in the past.

Games cost a lot to make, but it's not like the gaming industry (for the most part) is out to service the customer. They're just chasing a bottom-line.

Used-games and game trade-ins have kept the gaming industry alive in a lot of ways that "new releases" couldn't. It's been an invaluable method of introducing people to games/franchises that they might've otherwise never touched...and it's enabled collectors and other game enthusiasts to keep up with their favorites from current and previous generations.

Some people would say that the attack on such an industry is just selfish.

Quote:
Originally Posted by Rabid
I can honestly say that that man is undeniably over-paid.
2 years of work - over a mil...yeah. I like how his previous positions are listed on the side and two of them are internships. mustbenice lol.

Quote seth-magic edited at 05:21 PM (May 12th, 2012)
 

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Old May 12th, 2012, 06:41 PM   #12: [Thread] [Post]
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The problem that publishers and developers are having is that they live in a fantasy land where the copyright laws that largely protect them have little to no value to them.

For crying out loud if authors can support freaking LIBRARIES then the gaming industry can shrug their shoulders at used gaming.
 
 

 
Old May 13th, 2012, 03:36 AM   #13: [Thread] [Post]
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Quote:
Originally Posted by Rabid
DLC/online access codes are a response to used games sales.
Online access codes certainly are, but I wouldn't say DLC is. DLC is basically the evolution of the expansion pack, and those have been around long before this debate about pre owned games kicked in.

In terms of the the general argument, I don't see what complaints the video game industry has about second hand items that the music and book industries don't have, to name but two.
 

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