An interesting take on banning used games | TigerDroppings.com

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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
57187 posts

An interesting take on banning used games



quote:

First, remember that the sale of a console costs the manufacturer money. Second, recall that the manufacturer and Publisher does not profit from the sale of a used game. Basically, a person who only plays used games costs the manufacturer money for the console, and it’s never recovered, that person is not only not a revenue generator, he’s literally an expense.


quote:

Microsoft doesn’t actually lose money. If the person who only or mostly plays used games doesn’t buy MS’s console, MS doesn’t take a loss on the sale. That event alone improves the profitability of the console.



quote:

Second, those people go over to Sony. So instead of both MS and Sony taking a share of a population that causes them to lose money, Sony shoulders the entire burden alone. Sony is left trying to recover the losses from only a portion of their customers, while the other portion never ends up being a revenue generator. The more consoles Sony sells, the more money it loses. Selling 20 million consoles isn’t all that great when only 5 million of them are ever going to generate revenue for you. In contrast, if MS sells 5 million consoles, all 5 million of them will generate revenue and recover the loss of the sale.



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TLDR? Sony fricked







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brucevilanch
Alabama Fan
Birmingham
Member since May 2011
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re: An interesting take on banning used games


Sony is fricked if this console fails.





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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
57187 posts

re: An interesting take on banning used games


I think you are the only one literate enough to undertand the article anyway. So let's just talk amongst ourselves.





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front2back
Member since Jan 2012
617 posts

re: An interesting take on banning used games


I havent met a person that has never bought at least one new game

this article is assuming 25% of out of 20 mil will buy new games which is laughable






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sbr2
Member since Apr 2011
13049 posts
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re: An interesting take on banning used games


If this is the case, digital distribution would seem to be the preferred method of sales. What the hell is the point of a disk when you can't play it on another console?





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MFn GIMP
LSU Fan
Owensboro, Kentucky
Member since Feb 2011
8765 posts

re: An interesting take on banning used games


quote:

I havent met a person that has never bought at least one new game

this article is assuming 25% of out of 20 mil will buy new games which is laughable

I know. The only used games I buy are the ones that are 2-3 years old. Why would I buy a newer game used when the price difference is only $5-10?






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Bunta
LSU Fan
Captain Lu-Natic
Member since Oct 2007
6788 posts

re: An interesting take on banning used games


What a shitty article.


This post was edited on 3/22 at 3:17 pm


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oauron
Baton Rouge, LA
Member since Sep 2011
9625 posts

re: An interesting take on banning used games


quote:

What a shitty article.



It is. Considering how much business is done digitally (XBL sales and PSN sales), it's incredibly stupid to write off 75% of the userbase. That's even if, and this is a outrageously unbelievable stat, they think 3/4 of the userbase only buy used games.






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Bestbank Tiger
Ohio State Fan
Landmass
Member since Jan 2005
20698 posts
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re: An interesting take on banning used games


quote:

First, remember that the sale of a console costs the manufacturer money.


Their choice to use the console as a loss leader. If the market doesn't support that strategy, they should change their business model accordingly.

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Second, recall that the manufacturer and Publisher does not profit from the sale of a used game.


Maybe not directly. But without the resale market, the value of a new game is less. At some point in the future you'll want a new experience or get bored with a game...if you can't sell it to someone else when you're no longer interested, you're not going to be willing to pay as much for the new game.






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ZTiger87
LSU Fan
Member since Nov 2009
11438 posts

re: An interesting take on banning used games


I understand the concept, but they are entirely wrong on the Dev/Publisher angle. If there are vastly more PS4 units out there then chances are more games are going to be developed for the PS4. It just makes more sense to target the largest possible audience, even if you lose some sales because of used games. I also imagine that people would be more hesitant to buy new games at launch if they had no way to recoup some of their money. Right now I know that I can at least get $30 back within 2-4 weeks if I don't like a game.

At the end of the day consumers just want the best value for their money. So assuming the consoles are close spec wise and have a similar library, I don't see why people would pick a 720 over a PS4 unless there was a vast difference in pricing.



This post was edited on 3/22 at 6:48 pm


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THRILLHO
New Orleans Pelicans Fan
New Orleans, LA
Member since Apr 2006
35747 posts
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re: An interesting take on banning used games


quote:

I know. The only used games I buy are the ones that are 2-3 years old. Why would I buy a newer game used when the price difference is only $5-10?



That's where they're fricking up. If they had good deals on older games (ala Steam), they'd get my money instead of me buying used. Been a while since I've checked PSN, but they were way overcharging for older stuff.






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TigerStripes06
LSU Fan
SWLA
Member since Sep 2006
25402 posts

re: An interesting take on banning used games


I remember seeing a while back that you could download games for free, actual full length games...not just the shitty arcade games....for free if you paid for playstation plus. There were a LOT of games too. Do they not do this anymore?





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taylork37
Ohio State Fan
The social pipeline
Member since Mar 2010
10695 posts

re: An interesting take on banning used games


It is called PS+ and is still around. You can only play that game for the life that you have the service. It is basically a rental.Decent selection with a few big titles,but nowhere near a "huge selection". That selection also changes every month.


This post was edited on 3/23 at 2:22 am


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