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"I kinda agree with you that option 2 is not plausible. In fact we can even see the exact opposite happening right now, what with publishers charging the exact same price of a physical game copy on steam and in some cases there have been reports of steam versions costing more than retail box versions which I think we can both agree is absurd.

 

However I see option 2 as more plausible than the possibility that tangible consumer rights will pass over to digital licences. It's not going to happen. There will not be a second hand market in the digital realm.

 

Option 2 was mostly just to highlight the logical solution to this problem, which is basically a monetary issue. Gamers want cheaper games, creators want more sales. I do not propose that it could be brought about quickly by a decision on the part of either side. Rather this is something that could happen through market forces over time, since we vote with our purchases. For me personally that often involves buying games when they go on sale. I really don't consider the latest fps shooter single player campaign which I finish in 10-20 hours to be worth the full price they charge nowadays. So I wait and buy when it's cheaper.

 

When I talk about preowned as a quasi form of rental I am trying to highlight the underlying motivations we have for our economic behaviours here. For example, why do we bother trading games in at all? Why did you decide that you do not want to "own" this game anymore? I feel that the answer is that we want to get some money back, and I feel the answer is important because it reveals a widely held attitude that most games are not worth their cost for the length of entertainment they provide. I think many gamers subconsciously do not want to pay a big premium to "own" a game forever, especially when they realise how quickly it gets regulated to the shelf. If we try and model our experiences with buying new and trading in, I see it as something like this,

 

"I played this game but I won't play it again so I want some money back because I don't think the full cost I paid for it is worth the time I have spent on it." A customer buys a game at $60. Plays game for 1 month. Trades game in for $30. End result, customer spent $30 to play that game for 1 month. What it all boils down to is paying X COST for Y LENGTH of play time. In my mind all market experiences with games and customers can be thought of in these terms, and these terms are analogous to a rental system. Even if you buy a game and keep it forever, never trading it in, Y is simply a very long time.

 

What we see when lots of preowned trading occurs is really very similar to a rental system. I used to manage an EB game's store and I remember the regular customers and their habits. Gamers would rock up on launch buy the full priced game. 2-4 weeks later they return saying they finished it, they then trade it in and get the next newest big game to come out, the cost of the previous game subsidising their next purchase, and so on and so on.

 

Thats what I mean when I say rental system. I think it's important to notice, that there are so many gamers (as evidenced by the popularity of trade in's and mmo subscriptions) that are revealing what they really care about in their gaming hobby; cost vs entertainment value. And my whole point is that this desire in gamers is being handled very messily at the moment, with the parallel used market. Some gamers benefit if they are the kinda people that trade in at the right times, other times you lose out. The whole point really is that it sucks that these games are set at such high prices right off that bat that we as gamers are forced to make use of parallel markets to recuperate costs in the first place.

 

I understand that it's unlikely publishers will lower prices, but really voting with your purchases is all you can do. Digital distribution will take over and it will be licenced and we will be at the mercy of the creator. But we should remember that at the end of the day they need our money to survive and we will always have that to vote with. There are many smaller developers that are making some interesting stuff on digital distribution platforms and by supporting them and their lower costed games as well as waiting for games to drop in price we are sending a healthy message to publishers that over time might be enough to break them out of the blockbuster big budget full priced games mentality."

Friday, September 03, 2010
"@RobSavillo

 

I do not think I said anywhere that copyright protects ideas. I did however say that we live in a society that believes ideas can be owned and licensed. By that I was referring to the entire collection of intellectual property laws that have been created, which includes patents for example, and patents do indeed protect ideas.

 

Also I did not say that the purchase of all copyrighted material is the purchase of a licence. I said computer games are software licences. There are licences for other types of things as well. For example e-book titles typically have licences akin to computer games. Licences like this exist for a few reasons (some of which I agree simply give power to the creator) but probably the most interesting and primary reason is simply to avoid a silly legal situation of having your customers break the copyright laws to use your product.

 

When you install a game from a CD you are making a copy of it (on your hard drive) and infringing on the software creator's copyright. The licence exists as a way around this. If you agree to the licence the creator allows you to make a copy on your hard drive and use it under certain terms outlined.

 

Now people start using books for comparison and analogies, but you have to understand the differences with books. A book has no need for a licence. When you are sold a book you receive both the copyrighted information, the medium of storage AND the device in which to access the information all in one neat package. The act of reading a book does not make any copies of the copyrighted material.

 

I am really confused about your desire to argue for existing rights of tangible copyright storage mediums to be transferred across to the digital realm as well. You mention steam. Why is it that you want to resell your purchased steam game? And furthermore who do you want to resell it to? do you mean just other users? Or do you want to resell it back to the creator? Either way you are basically just asking for some money back after playing it for X amount of time. Really this just translates to a rental model. The only reason I can think of for wanting to resell a digital licensed game is because fundamentally you disagree with the cost/value of the transaction. Bored of the game after a week, realised six months later you don't play it anymore etc. You want some money back. Really your saying you wished you paid less.

 

Issues of the cost of games should not be solved which such complex second markets. If the problem is that the game is too expensive then the game should be cheaper. Isn't it better for all concerned to sell a game cheaper to all than to sell it full price to some, and let a second market make it cheaper for others?

 

Consider a game which sells for $50. Two customers want the game.

Option 1: Fred buys game for $50, plays it, then sells it to Bill for $25. Creator makes $50, Fred and Bill both spend $25. Consequently both Fred and bill are at a loss but not of the monetary kind. Fred is now without the game and Bill had to wait before playing the game.

 

Option 2: Company sells game at $25. Fred and Bill both buy a copy. Company makes $50 from two sales and both Fred and Bill spend $25. However this option has many benefits over the former. Both Fred and Bill got to play the game straight away and they can both play it for however long they want.

 

Now you can run the numbers in different ways, but ultimately it will always come down to one thing. When people trade in their games it is a sign they do not see value in that game anymore. They have decided it's only value to them now is to get some money back. If this is the case (that trading is so prevalent), then it is a sign that the pricing model of many games needs to be reconsidered.

 

Before digital distribution we thought of games as physical objects that we could own, because for all realistic purposes they were! They were stuck on physical storage mediums which could be swapped and held by different people. Now in digital distribution, stripped of it's storage medium we see a game for what it really is, pure copyrighted material. Now if we have a problem with how that is licensed to us, then really what we have a problem with is the copyright system itself. And that is a fair enough gripe to have considering it hasn't changed much since the advent of the digital realm."

Friday, September 03, 2010
"Fundamentally what we are seeing here is the growing pains of an industry that is shedding an old model of business. These thoughts arose from the fact that now some developers and publishers have the ability to sell a game (digital distribution) for what it always was, a licence to run their copyrighted software on your machine.

 

We have been buying games on a physical medium for so long now that many of us have forgotten what it is we really pay for when we buy a game. Games have come on floppy disks, cartridges, CD's and DVD's over the years because it was the only realistic way to deliver the game to the consumer. It was not a choice of the publisher, but a necessity of the technology.

 

Along comes digital distribution and people start thinking. Hrmm I can't give this game to my friend now when I'm done, hrm I can't trade it back in when I am finished with it. Hrm I can't buy a cheap used copy instead of a regular priced one.

 

Then we start thinking how the economics of the industry works. Retailers sell a used game and the developer doesn't get a cut. Some people allude to how this is no better than piracy and that gets everyone thinking.

 

That this can even occur legally is due to what is called the first sale doctrine in the US, other countries like mine (Australia) call it the Exhaustion Doctrine. In simple terms it gives the buyer the legal right (which they normally wouldn't have if this law did not exist) to transfer their "licence" of the copyrighted work to another person. Its different to copying software because you are exhausting your original claim to the licence (i.e. I give you my apple, now I have no apple). I doubt the lack of this law would stop people reselling anyway, and its probably for that reason that the law exists in the first place; to protect a culturally accepted behaviour. We have always traded and bartered since before we had currency, it is socially ingrained. Why waste something that someone else could use and I could receive back from? But we think this way because we are use to thinking in terms of physical goods and not software (copyright, a legal construct we created).

 

The important thing to remember is that games are software licences and they always have been. When you buy them you do not own anything but the medium on which they are stored, and the medium is meaningless to us, we care only for the information stored on the disc. We are dealing with something fundamentally different to apples and oranges and tangible goods of our past.

 

As we move into the future and embrace digital distribution the used game market will slowly dissolve over time and this will be a non issue. Game licences that we have always been buying will become like the publisher's always wanted them to be, non transferable. further more there might be a push towards subscription models of business in all game types, not just mmo's. Is this a good thing or a bad thing?

 

I don't think it is either. Good and bad things will come of it, and we have already seen some of them (publishers charging full retail price for a digital distributed version etc). The point is, we should probably ask ourselves, how do we think video games should be sold?

 

Two interesting questions I can think of are,

 

Why do we want to resell a videogame? What are we saying when we do this? I think we are saying that we want to pay less for this game. If you think about it, your selling the game back and getting some return, which reduces the overall cost of the game you paid for. That people trade in so many games is in my mind a message to the developers that the price is too high. Many people don't want to pay a high price and keep a game forever.
 
 
Why do we buy used games? It's certainly not for the quality. It's because they are cheaper and in all likelyhood work just as well. Again the message here is clear to me, we want to pay less for games.
 
 
Libraries aren't illegal for the same reason trading your used game cd isn't. The right to do it is something we value as a society, as part of our culture, to freely trade physical goods with one another. Libraries in ages past were bastions of knowledge and cultural growth. We respect the need for this right to exist. In some sense it is alien to us for it to be any other way. On those grounds at the least it will always remain a right.
 
 
Now how do things change when we think of books and libraries in terms of the kindle (or any other e-reader)? Do we think it should be fair to resell our purchased e-books? What do we think of the idea of a library of e-books that can be accessed from your e-reader?
 
 
What I am trying to get at and reveal here is the fundamental skeleton of what purchasing a videogame means. And what it really comes down to is the human created constructs of copyright law and intellectual property. We live in a society that believes ideas can be owned and sold/licenced/etc but we also live in a society that has evolved from a history and behaviour of bartering. At the moment these two ideas are in some conflict. But like I said, ultimately digital distribution will make it clear some day in the future to all of us exactly what it is we are paying for. And then when the only option is to accept the terms of the creator's copyright we might start to wonder how much of intellectual property laws we actually like.
Thursday, September 02, 2010
"f by trading in your actually saying something that we all say when we trade in but often don't think about. You paid $60 for a game. Played it, got bored of it. You traded it back for $35 because you didn't want to play it any more. The end result is that you paid $25 to play Darksiders for X amount of time (X being however long you had it for). Your fundamental problem is that you don't think Darksiders is worth $60. Your happy to pay $25 straight to the developers but $60 is a lot and when you have finished playing it you expect to be able to get some of it back. Problem again is that when you try and get back what you think its really worth you end up indirectly affecting the developer's potential revenue by creating a copy of the game on the market in which the developers receive nothing from. So the best thing for everyone would be some solution that lets both you and the developer enjoy a transaction that fair for both sides and free of third party complications. Such a solution would be for the developer to sell the game as non-transferable, to you for $25 for X amount of time. The developer is selling the game for less but not necessarily making less money because they are getting more sales. Every sale that would of been a used game sale they are getting in theory. This model is already seen in MMOs. Perhaps it is the best model for other game genres as"
Friday, January 29, 2010