An interesting take on banning used games

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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.

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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.

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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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