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Message
An interesting take on banning used games
Posted on 3/22/13 at 2:16 pm
Posted on 3/22/13 at 2:16 pm
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.
LINK
TLDR? Sony fricked
Posted on 3/22/13 at 2:18 pm to Broke
Sony is fricked if this console fails.
Posted on 3/22/13 at 2:34 pm to brucevilanch
I think you are the only one literate enough to undertand the article anyway. So let's just talk amongst ourselves.
Posted on 3/22/13 at 2:36 pm to Broke
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
this article is assuming 25% of out of 20 mil will buy new games which is laughable
Posted on 3/22/13 at 2:49 pm to Broke
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?
Posted on 3/22/13 at 2:54 pm to front2back
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?
Posted on 3/22/13 at 3:14 pm to Broke
What a shitty article.
This post was edited on 3/22/13 at 3:17 pm
Posted on 3/22/13 at 3:22 pm to Bunta
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.
Posted on 3/22/13 at 5:50 pm to Broke
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.
quote:
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.
Posted on 3/22/13 at 6:47 pm to Broke
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.
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 3/22/13 at 6:48 pm
Posted on 3/22/13 at 9:06 pm to MFn GIMP
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.
Posted on 3/23/13 at 12:19 am to THRILLHO
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?
Posted on 3/23/13 at 2:19 am to TigerStripes06
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 3/23/13 at 2:22 am
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