If Used Games Die, Will Gamestop Follow?

It’s looking more like trouble for Gamestop with the next-gen consoles poised to turn everything upside down for the Gamestop world of used games. Microsoft and Sony both have held a tight grip on the details of used games so far, leaving Gamestop in the virtual dark about its future.

Added fees to used games that either increase the price or decrease their cut is trouble. Only allowing access to a game by paying the full retail price of the title is a step further and would strike the used games market dead where it stands.

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I have a feeling the "fee" is going to be exactly what the licensing revenue that MS/Sony would have lost to the used game over a new one.

Lord knows they won't survive on new game sales,not with the prices they charge. And considering how they rip people off with their used game practices,they deserve what's coming. Of course,the whole flap is a non-issue for PC gamers,since we haven't had the luxury of used games for quite a while. But with lower retail prices for new games and Steam,who needs them?

Gamestop deserves to die an ugly death. They have been ripping people off for too long. I'll be glad to see used games sales (Or really the sales of new game licenses on used discs) go to the publishers/developers. You know, to the people who had something to do with making the game and releasing it, instead of gamestop, who does nothing but overprice used games, and sell used discs as new. Die Gamestop!!! I hated you ever since you bought out Funcoland. I loved that place. They used to actually sell used games for USED PRICES! lol

Game Stop has had around a decade to plan for this and if they haven't diversified their business by now then it is their own fault.

Where am I going to get my next game from if Gamestop is gone?

Better yet, what happens to GameFly?

I'm guessing GameStop will embrace indie developers (not the corporate mega-publishers posing under a spin off small company that use Kickstarter to soak up costs, but actual indie devs) who are chained to digital distribution which limits their broader availability. If GameStop partners with them, they'll be able to sponsor an entirely new generation of game developers by getting their CDs and DVDs to the market. It's probably their best chance to survive the digital distribution era and I can't imagine they aren't having discussions about how they're going to accomplish it while we're speculating here.

I don't have any issues with used games, if priced properly, but gamestop ripped customers off numerous times.

They buy used games from customers for pennies on the dollar then resell it for only 5-10$ less than retail price. Not to mention all the times they sell the games that were opened and possibly even used by in-store employees as "new".

Gamestop as a company needs to just go away. There are other ways to get used games.

We can only Pray. [-O<

MS could do an auction house type system. You want to sell your game so you put it up on the xbox AH. List a price and all that, once it sells, ownership is transferred to that person instead. Of course MS will probably take a cut and the rest goes to you.

I like the used games market. GameStop is a very crappy company, though, with their practices.

I liked the old days of Funcoland (Funco), Game Dude, and others that you'd find in the back of EGM or Gamepro. I bought a lot of SMS/NES games back in the day from them for very low prices. You could sell them to the company for a lot more than Gamestop did, too. There was a lot less of a difference between buyback and sell used prices. The good ol' days, I guess.

Used games are still a big issue with me. I buy used games, and I hope I can continue to do so. If not, that would really make me think twice about buying a system.

I hope it dies.

since I rarely have to have a new game when it first comes out due to my backlog I can wait a few months and get it new cheaper than used at game slop. used games are a non issue for many people, sharing with family and friends is the bigger issue.

as horrible as game stop is think of how many people are going to be unemployed because of all this

I know everyone wants everything for dirt cheap but eventually if everyone gets everything online and such where will everyone work? at distribution warehouses for Amazon? McDonalds?

Act gamestop has diversifiedf and they sell used electronics

FLECOM said:

as horrible as game stop is think of how many people are going to be unemployed because of all this

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Thank Microsoft solely for this.
Since they no longer allow used games, it will not only cut back on sales from Game Stop, but will also kill additional potential DLC sales of those said games.

A hurting economy + $60 games - used games - DLC revenue = zero sales.
I can't believe Microsoft is this greedy and foolish.

I would say that Microsoft is just like Apple at this point, but Apple was able to diversify in time for this poor economy.
Microsoft is about five years too late with Windows 8, tablets, and this joke of a console.

I feel for those individuals who will be out of work at both Game Stop and Microsoft, because at this rate, within the next decade, neither will even exist.

Red Falcon said:

Thank Microsoft solely for this.
Since they no longer allow used games, it will not only cut back on sales from Game Stop, but will also kill additional potential DLC sales of those said games.

A hurting economy + $60 games - used games - DLC revenue = zero sales.
I can't believe Microsoft is this greedy and foolish.

I would say that Microsoft is just like Apple at this point, but Apple was able to diversify in time for this poor economy.
Microsoft is about five years too late with Windows 8, tablets, and this joke of a console.

I feel for those individuals who will be out of work at both Game Stop and Microsoft, because at this rate, within the next decade, neither will even exist.

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Everybody want to blame MS for the used game thing but except for their own titles they don't get that much benefit from killing the used market ... the main beneficiaries are the Publishers and the Developers (probably mostly the former) ... I see the publishers hand behind this

The big benefit for Sony and MS will come when they can kill physical media completely and go online (probably the next generation after this) ... that gives them complete control over the software and they can take a fixed cut of every sale (just like the app stores and Steam do)

GameStop derives more than half their profits from used sales last I checked. I think new is a larger percentage of their sales, but the profit on those isn't nearly as nice.

Needless to say, anything that impacts or eliminates the viability of used games is going to force GameStop to close a lot of stores.

What amuses me more is that gamestop is still in business at all.

I'm torn by this. On one hand, restricting the sale of used games is so anti-consumer it makes my blood boil. On the other hand, screw gamestop. Screw it like crazy.

kbrickley said:

Everybody want to blame MS for the used game thing but except for their own titles they don't get that much benefit from killing the used market ... the main beneficiaries are the Publishers and the Developers (probably mostly the former) ... I see the publishers hand behind this

The big benefit for Sony and MS will come when they can kill physical media completely and go online (probably the next generation after this) ... that gives them complete control over the software and they can take a fixed cut of every sale (just like the app stores and Steam do)

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Microsoft gets like a 30% cut of every new game sold. Used games, they get none (usually). WIth their xbox one scheme they could get a cut on used games while publishers get something to nothing. They could really pressure publishers by manipulating the terms and resale value of used games. Uppity publisher and suddenly the used games of their best titles are on sale for 25% and the publisher gets nothing.

I don't see this having as much affect as you guys think. Gamestop actually adjusts their prices on new games that are aging not to mention a much better selection then other stores. Not having used games might actually drive the prices of new games back down. Remember the prices in the Gamecube days?

atom said:

I don't see this having as much affect as you guys think. Gamestop actually adjusts their prices on new games that are aging not to mention a much better selection then other stores. Not having used games might actually drive the prices of new games back down. Remember the prices in the Gamecube days?

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Bullshit. They adjust SOME prices and when they do it's way later than it should have been.

The price of a new game will be the same don't kid yourself that's not going down, if anything it's going up.

maverikv said:

I'm torn by this. On one hand, restricting the sale of used games is so anti-consumer it makes my blood boil. On the other hand, screw gamestop. Screw it like crazy.

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I don't get the hate on gamestop, they are irrelevant. You can buy games elsewhere, and you can sell you can buy/sell your used games to/from actual people and cut out the middleman. If you go to gamestop for used, you pay a higher price to use a middleman, but you are doing that by choice.

Now this move from Microsoft sounds MUCH worse, now you have middleman if you want one or not, with Microsoft/EA taking a cut on all used sales.

Hell, I see this affecting much more than used game sales. And I'm surprised noone has mentioned it yet either.

IMO, I see both new games, and console sales being largely affected. And not in the ways you are thinking here. (bycotters because of the used games shenanigans, etc....)

Here is what I see that happens.

1. Jimmy has a 360/ps3 (doesn't matter which, but we'll use 360 for example purposes)
Jimmy happens to like a lot of games. In fact, over the years he has owned his 360, he has purchased and played quite a few.
Jimmy has a limited source of income, so he has to pick and choose what to play.
As tends to happen, multiple blockbusters are released nearly simultaneously. (lets say 3 big games within a month)
Well, Jimmy wants to play them, so he gathers up his available finds, and finds he is 20 bucks short. OH! Jimmy thinks. He has a few older games he doesn't touch anymore! So he takes these in, and has enough to get blockbuster game #1.

He takes it home, plays the hell out of it. Beats it in a week.
Now, he wants game # 2. But it has only been a week, Jimmy has only had time to earn a few extra bucks.
But wait! game # 1 is only a week old, and still commands 35 trade-in value! NICE!
So off Jimmy heads tot he local game store, trades it in, adds 25 bucks, and gets a shiny new copy of blockbuster game # 2.
Blockbuster game # 2 takes Jimmy 2 weeks to beat.
But beat it he does.
Now, Jimmy wants # 3. So off he heads again, to trade in #2, add some cash, and get #3.
He gets #3, and loves it. It has an online component, so he decides to keep this one, at least until the online has died out. Right around the time new blockbuster games come out. And maybe, if he has a few of these lying around, he can start the process all over again.

Imagine a million other teen boys/girls, or other types of gamers with limited income.

Now, let's see how MS/Sony sees these numbers. They see they sold a million copies of each game! Holy hell, they made bank! New franchises! New opportunities for sequels for even more dough!
Add-ons! Tie-ins! MORE!

From Jimmy's perspective, he got to play 3 new blockbuster games for the price of one!

Now, lets take used games out of the equation, and add in the current theories regarding used games.

Without going into another story here, you do the math.
The games Jimmy used to bolster his purchase of game # 1 are largely worthless to Jimmy now. There is no used games market.
Jimmy can no longer afford game #1, let alone 2 or 3.

Jimmy was able to come up with enough cash over the month period for one game. that's it.

IF he is still a gamer at this point, because he can afford to game so infrequently now, he may purchase one of those games.

Again, imagine a million consumers in the same position.
A number would not even own the console, they wouldn't be able to afford to use it enough to make the purchase worth it.

As for the rest, now lets examine what MS/Sony see this time.

They hardly sold any! What the hell? These are large blockbusters, and we sunk MILLIONS into them! Why aren't they selling? What's happening? We even tried to bolster our income by eliminating used games! We should be selling MORE, not LESS! Whay are we losing money?

Well, the answer is, they just eliminated the ability of millions to purchase said games. Making some find another pastime, and the rest having to choose very carefully. Everything else, gets left by the wayside.

Are there those who will still buy? Of course. Still those who game on a regular basis and can afford too? Of course.
Are they the majority? No. The masses keep the companies afloat. And if they can't afford to play anymore, than there's a big problem looming.

So yes, the powers that be may see they sell millions of games to the masses. And may consider them huge hits. But thought into who's buying, and where the money comes from, needs to take place here.
If you can turn 50 bucks into 3 games, but now are left barely being able to afford one, due wholly to a companies change of tactics, than said company needs to be prepared for a huge financial backlash. They just cut their customer base.

And no amount of extra funds from fees, etc.... will be able to make that up.

quimby999 said:

, sharing with family and friends is the bigger issue.

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I have the family account and my kids play Xbox at their cousins house (next door). So, there are 7 Xbox's total, with 8 different accounts. If I can't grab a game and take it next door and be able to play it, I'd be pissed. Rentals are gone. Used games are gone. Loaning a game to a friend is gone.

Yea, Steam and all that. Ok. I play PC games on MY PC. I don't take a game somewhere else to play it on someone else's PC. That's the joy of consoles - games are easily mobile. Grab it, go, and pop it into a different console, turn it on and play the game. No install necessary. No driver updates. No worrying about min. system requirements. It's just plug and play. PC gaming and console gaming are completely different things. Aside from LAN's, PC gaming is one player. Consoles, you can have a group of friends in the same room, playing the same game.... So, what I'm saying is - Consoles and PC's are different in that way. You shouldn't force PC DRM on a console. Consoles are NOT PC's, and they never have been and they've always been a multiple player experience...

I won't buy a system that doesn't allow the openness of the games, either used/rental or loaning/borrowing. It's just not a console thing. If MS and/or Sony does this, I will buy a Wii-U (which I've been thinking of, anyway) to play games on.

FLECOM said:

as horrible as game stop is think of how many people are going to be unemployed because of all this

I know everyone wants everything for dirt cheap but eventually if everyone gets everything online and such where will everyone work? at distribution warehouses for Amazon? McDonalds?

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Funny,Gamestop didn't seem to care about the people who lost jobs when they pushed all those other used game shops out of business. And then used their near monopoly in the market to stick it to consumers.

Ur_Mom said:

I have the family account and my kids play Xbox at their cousins house (next door). So, there are 7 Xbox's total, with 8 different accounts. If I can't grab a game and take it next door and be able to play it, I'd be pissed. Rentals are gone. Used games are gone. Loaning a game to a friend is gone.

Yea, Steam and all that. Ok. I play PC games on MY PC. I don't take a game somewhere else to play it on someone else's PC. That's the joy of consoles - games are easily mobile. Grab it, go, and pop it into a different console, turn it on and play the game. No install necessary. No driver updates. No worrying about min. system requirements. It's just plug and play. PC gaming and console gaming are completely different things. Aside from LAN's, PC gaming is one player. Consoles, you can have a group of friends in the same room, playing the same game.... So, what I'm saying is - Consoles and PC's are different in that way. You shouldn't force PC DRM on a console. Consoles are NOT PC's, and they never have been and they've always been a multiple player experience...

I won't buy a system that doesn't allow the openness of the games, either used/rental or loaning/borrowing. It's just not a console thing. If MS and/or Sony does this, I will buy a Wii-U (which I've been thinking of, anyway) to play games on.

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Just to clarify, with Steam you can go to your neighbors and play it there, if you're willing to wait for the download (maybe do the backup game option with a thumb drive although I'm not sure that will work correctly with a different system)

I'm not totally sure that gamestop will die. Once the new systems come out I'm heading over to buy a 360/PS3 and buying all those console exclusives I never got to play at a very good discount.

Anyone that relies on physical distribution will die. Electronic only distribution is right around the corner.

jpm100 said:

Just to clarify, with Steam you can go to your neighbors and play it there, if you're willing to wait for the download (maybe do the backup game option with a thumb drive although I'm not sure that will work correctly with a different system)

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Yes, but a lot of people are saying that PC gaming and Steam has done the "no used games" thing for a long time. My point is - It's NOT PC gaming. It's simple console gaming. That's the big thing for me with PC vs. console. Take the ease of use and the "insert disc and play" away, and I'm not interested. I love grabbing a controller, putting a game in and playing the game (regardless of where I am or who's console I'm using). If there is less of a line between console and PC gaming, I'd gladly go PC - better graphics, better controls, better experience for most games I play.

As far as 'always on' or 24 hour intervals between network connections? This will cut down on multiple purchases for some people. But, that's a whole different conversation.

Taco said:

Anyone that relies on physical distribution will die. Electronic only distribution is right around the corner.

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I'm not so sure. Consoles have that instant gratification. Buy a game, pop it in, play it. I've downloaded a few games via Xbox Live, and it's cool. But, I'll buy it and let it download it overnight and play it the next day. Not too great when you're having a sleepover or party or whatever (thinking of my teenage years).

Isn't it quicker and easier to buy online and download than go out to the store, buy and come back?

Taco said:

Isn't it quicker and easier to buy online and download than go out to the store, buy and come back?

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Possible, depends on the quality of internet in your area. Of course ultimately irrelevant as some of us want a physical copy period. I want to have something on the shelf if it is a series I really enjoy or I want something I can trade in and redeem some of my investment if I don't.

Stores like Gamestop killed the local mom/pop game stores.
Their prices are ridiculous too. $5 off a new title is not much of a deal...considering their insane markup.

GS can rot in hell.

When I played on Consoles I used the hell out of Gamestop. Buy a new AAA game beat it in a week return it for 75% of the cost through a few dollars towards a new game and I was happy enough. I never had a problem trading in a used console for a few dollars towards a new one. Seems all of these complaints are haters of free markets. Don't like the service don't use it. I for one hope they manage to corner another consumer market in used goods.

Taco said:

Isn't it quicker and easier to buy online and download than go out to the store, buy and come back?

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That depends entirely on the speed of your internet and the distance you are from the store.

For example, when Fallout New Vegas came out, I swung by Gamsestop on the way home from work and grabbed a copy. The side trip only added about ten or fifteen minutes to my drive. When I got home the disk went in the drive, activated the Steam code, and then preceded to start downloading the entire game client from steam. Estimated wait time was well over an hour. A quick search of the Fallout forum explained how to force the instal from the disk and the game was up and running long before the Steam download would have finished.

On the other hand, anyone who has Google fiber would be in the exact opposite boat.