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#Gaming

Edited by FoMan123: 6/18/2013 4:35:30 AM
14

Why used games are bad.

I will begin with a video that you can watch to show how used games are bad. First off, i would like to say, this is not a defense of either console, i am purely stating why used games are bad. Second, if someone sees a issue in my math please tell and i shall correct it. Ok, many people buy used games. Most people do, but it is hurting game developers and publishers. It gives them less money, thus cause them to lose more money. So many studios have gone out of business this year alone, so i would like to show how, with math, why used games are bad. [url]http://www.jjgames.com/page/used-games-infographic[/url] This is the link i am using to draw my statistics from. As it says, is 2008 Gamestop had a revenue of 8.7 billion dollars. Pretty good if you ask me. But their is a chart that shows that 23% of their revenue is from used games. Now lets start the math. I will go ahead and point out these constants. New game = $60 Used game average cost = $40 (i came up with this number myself, but i feel it is pretty accurate) 23% is converted into .23 Now more math. 8,700,000,000*.23 = 2,001,000,000 billion dollars So Gamestop's revenue in 2008 was 2 billion dollars from used games. Now if the average used game cost $40 you can divide that 2 billion by 40 and see how many used games where sold. 2,001,000,000/40 = 50,025,000 million used games sold Now with that many used games sold at the average of $40, multiple the 50 million by the average of the new game price of $60. That would be the amount of revenue from those 50 million games if they were sold at the new game price. 60*50,025,000 = 3,001,500,000 billion dollars if those games were sold at the new game price. So now just take the difference. 3,001,500,000 - 2,001,000,000 = 1,000,500,000 billion dollars that would have been made off those games if they were sold at a new game price. So that means that not only does Gamestop lose a ton of money, so do the game developers and publishers do. But mostly we are just worried about the developers who lose money, and some even close down their studios. And that was only Gamestop, that doesn't count other retailers too that sell used games. As you can see, developers and publishers lose a ton of money from used games. And those stats were from only 2008 too.

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  • [quote]I will begin with a video that you can watch to show how used games are bad. First off, i would like to say, this is not a defense of either console, i am purely stating why used games are bad. Second, if someone sees a issue in my math please tell and i shall correct it. Ok, many people buy used games. Most people do, but it is hurting game developers and publishers. It gives them less money, thus cause them to lose more money. So many studios have gone out of business this year alone, so i would like to show how, with math, why used games are bad. [url]http://www.jjgames.com/page/used-games-infographic[/url] This is the link i am using to draw my statistics from. As it says, is 2008 Gamestop had a revenue of 8.7 billion dollars. Pretty good if you ask me. But their is a chart that shows that 23% of their revenue is from used games. Now lets start the math. I will go ahead and point out these constants. New game = $60 Used game average cost = $40 (i came up with this number myself, but i feel it is pretty accurate) 23% is converted into .23 Now more math. 8,700,000,000*.23 = 2,001,000,000 billion dollars So Gamestop's revenue in 2008 was 2 billion dollars from used games. Now if the average used game cost $40 you can divide that 2 billion by 40 and see how many used games where sold. 2,001,000,000/40 = 50,025,000 million used games sold Now with that many used games sold at the average of $40, multiple the 50 million by the average of the new game price of $60. That would be the amount of revenue from those 50 million games if they were sold at the new game price. 60*50,025,000 = 3,001,500,000 billion dollars if those games were sold at the new game price. So now just take the difference. 3,001,500,000 - 2,001,000,000 = 1,000,500,000 billion dollars that would have been made off those games if they were sold at a new game price. So that means that not only does Gamestop lose a ton of money, so do the game developers and publishers do. But mostly we are just worried about the developers who lose money, and some even close down their studios. And that was only Gamestop, that doesn't count other retailers too that sell used games. As you can see, developers and publishers lose a ton of money from used games. And those stats were from only 2008 because they are used

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    • 70%+ of used game credit goes towards new games. Nice try, also used games cost 0$ to manufacture and distribute to the publishers. They are not losing money from a used game sale, because that assumes every used game sale is a new sale lost, which is very far from reality. Used games greatly benefit publishers, but they continue to believe the fantasy that if they stop used game sales unhealthy consumers will put up the extra cash to line the publishers pockets. Also very ironic that the guy in the video is playing a F2P game when talking about how expensive it is for publishers and developers to maintain server costs without new sales.

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      • Since all Gamestop does is rip off people who bring in used games I could not care less about the used game market going away.

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        • Although I am not particularly fond of the route Microsoft has decided to take, if you look at it from the business side, this is a perfectly logical approach. To be honest, the only reason I will be buying an Xbox One is for Halo. Call me a fanboy, or whatever, but I've been loyal to the series since Halo CE's release. Other than that, I will be purchasing a PS4 for everything else.

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        • I think MS did the the right thing even if im going to buy the ps4 I think MS did the right thing

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        • Edited by Mega Blaziken: 6/18/2013 11:32:31 AM
          one flaw in your calculations, all the publisher gets is whatever gamestop/other retailers pay for in buying the copies, not individual sales, hence if you make a shit/boring product, gamestop has to give consumers their money back so that they can reimburse their consumers, which then means they either have to A) send the copies back, causing the publisher/dev to lose out, or B) sell the bad game at a lower price in order to make the profit that they originally made in order to pay off the dev/publisher back, now which makes more sense? A) selling a product at a lower price in order to attempt to cover losses, or pay your debt to the source of your product, or B) just sending the games back and causing your source to lose out, and eventually go bankrupt from all the refunds THEY have to do for the retailer? there's a reason 60-70% of all game sales happen in the first week, and that's because the retailers pay off the devs after they turn a profit from the product.

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          • I'm glad someone posted this. People really don't understand wtf MS is doing.

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            • Edited by Studness4: 6/18/2013 5:38:45 AM
              IF Microsoft were to adapt the PC and Steam model I could understand but as of right now they are just double dipping. You can only buy new games and support the developer/publisher yet they still cost more than PC games and the same price as PS4 games. And they never said anything about Steam like deals, which leads me to believe they have no plans for it. If you wanna take my right to resell and lend the game out so that you can make profit on every sale give ME something so that I will want to adapt to your policies. Oh and GameStop is a terrible company, for a multitude of reasons. Any wise video gamer would know to stay clear away from that place.

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              • What used games aren't bad though I depend on the disc quality

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                • Yeah, so new games shouldn't be a thing? Well I'm pretty sure that Xbox One said it's going to cost $60 so it's technically not decreasing prices, so I don't get what your point is.

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                  • Edited by Vgnut: 6/18/2013 4:16:27 AM
                    Or does the money consumers make from selling their used games go back into purchasing new games? The reality is we don't know what the effect of banning used games would be. There is a leakage caused by GameStop acting as the facilitator of these trades (consumers trading directly with each other means cutting out the middle man so more for us to make and more for us to spend). Just pointing to GameStop's revenue, or any retailer, and suggesting that money could be going to new game purchases sn't provable.

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                    • Great post.

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                      • What does this have to do with Destiny?

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                        • Relevant

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