Gamers must wield their power as consumers more effectively

Bitmob
Monday, January 30, 2012
EDITOR'S NOTEfrom Jason Lomberg

Gavin argues that gamers need to fight back against the onslaught of anti-consumer activities on the part of publishers and developers. Until we make a concerted effort to hit the violators where it hurts (the bottom line), the blatant disregard for consumer rights will continue.

Gaming sites across the Internet are reporting rumours first shared by Kotaku suggesting that the next XBox  console “may not play used games”. It rears an ugly and, in my opinion, pointless argument about pre-owned game sales and their effect on the video game industry.

I can categorically prove that pre-owned games actually boost developers' incomes. I would never have paid full price for Mass Effect. I knew nothing about it at its release; I was abroad and missed the launch PR drive, and it simply didn't appear on my radar. A friend tried to convince me to buy it, so I purchased a pre-owned copy at a reduced price.

I became hooked on what is still one of my favorite games of all time. It lead me to buy the second game at launch and my pre-order for the third instalment of the series sits in the system of my local retailer. Bioware didn't lose £20 by my pre-owned purchase; it gained £90. Pre-owned games aren't killing the industry; they supplement and boost it.

The argument is in vain, though. Despite the awesome buying power of gamers (we spent $1 billion in 16 days on Call of Duty: Modern Warfare 3) we do not wield our influence effectively to prevent changes to the industry that we, as consumers, don't want. The pre-owned games fiasco is one example. EA is dominating the war against the secondary market, implementing online passes as a way to double dip.

 

Most of EA's flagship titles utilize online content and gameplay. Without multiplayer access, the FIFA, Tiger Woods PGA, and Battlefield series are just shells of games. Having to purchase a pass after buying a title from the pre-owned section negates any financial savings. Gamers might as well buy new. EA is winning that battle.

With multiplayer in games such as Halo and the Call of Duty and Battlefield series being such a huge draw, businesses are noticing a potentially lucrative revenue stream. Developers are flirting with the idea of subscriptions and pay-to-play. The first steps have already been taken with Call Of Duty Elite, a subscription service for more dedicated CoD players. The service isn't compulsory or even necessary to have a great online experience, but it is a move towards what industry experts like Michael Pachter discussed two years ago.

Pachter felt that multiplayer is such a huge segment of the industry that unlimited access to online gaming is directly detrimental to new sales. You'll excuse me if I chuckle, but if I pay for a game and an annual subscription to Xbox Live, I'm quite certain that I don't want to spend more money for the game's online component.                                                       

Video-game sales may not be what they were in 2008 but nor is housing or anything else. We are still in the throes of a global economic crisis, and consumers have less disposable income. This doesn't mean that gamers should be punished for finding cheaper ways to enjoy their chosen pastime. Nor should they be milked for more cash to supplement the industry's coffers in these bad times. We should take steps to prevent irreversible changes to how we access and pay for gaming.
 


Gavin Lowe is a staff writer for the UK based web publication Game Kudos and keeps his blog at The Gaming Gentleman. He also tweets now and then @GamingGentleman.

 
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Comments (28)
Jayhenningsen
January 27, 2012

Or you could go with another option: Wait until the price comes down and still buy it new. I spend less money and still get all the things that used purchasers miss out on. 

Mikeshadesbitmob0611
January 30, 2012

Granted, this is going to affect the used game market heavily, but look at PC gaming. You can't really trade your games there, either, aside from some Steam wizardry.

Blog
January 30, 2012

I don't like the idea of locking out pre-owned games at the source (which is something that's been rumored), but neither do I see a problem with a company creating incentive and/or disincentive for buying used over new.

This assumes we're talking about the relatively minor sanctions that currently exist.

A new game at Amazon is 60 bucks without tax and usually comes with a 10 dollar gift card for a future purchase. A used game at Gamestop is 55 bucks, plus tax. When Amazon sells their copy money goes to the publisher and content goes, without complaint, to the consumer.

When you buy a used game you aren't actually supporting the publisher, so you've already "hit them where it hurts."

You've rewarded a reseller over an artist all to save the cost of a Venti Mocha at Starbucks. I'm not sure the big drum "consumers" always beat in this war is valid. The sanctions imposed on used sales basically funnel money back into production and keep studios from being shut down and new ideas from being killed. Gamestop doesn't care about that because they'll always have Madden, Call of Duty or whatever else they need to stay in business between the next resale.

However, the complete PC style revolt against used games entirely--well that's something that irks me.

But, I'm also irked by people paying Gamestop for a product and then asking EA, Activision or whoever else why they aren't backing up their customers. They are--the paying ones--not the ones who scavenged to save five bucks.

Default_picture
January 30, 2012

Stephen, if the XBox next-gen console rumors hold true, then Microsoft wouldn't just be creating disincentives for buying used...they'd be literally barring the implementation of it on their console (notwithstanding any cracks). I’m not sure if I believe the rumors, mind you. Microsoft would forever strain their relationship with retailers (especially shops like Gamestop, who depend on pre-owned revenue).

Blog
January 30, 2012

Yeah, I don't quite buy those rumors either. That's why I felt uncomfortable attaching the Microsoft brand to them. Since it sounds so outlandish to me, I didn't want anyone to percieve me as taking a cheap shot.

I'd think it completely outlandish if not for the PC model, but it would seem like brand suicide to demand a group of consumers change their understanding of the business model after 30 years of relative consistency.

Robsavillo
January 31, 2012

"When you buy a used game you aren't actually supporting the publisher..."

This is a little misleading. The publisher was already paid for that copy by the first purchaser.

What the industry is suggesting is that they deserve money every time a single copy exchanges hands. No other content industry works like this, not for lack of interest, mind you. The game industry only does this because they can. Locking up content is a technical feat -- and some might argue, a feature -- that other industries (music, film, books) did not historically have access to simply because of the nature of the media that the content was distributed through. That's changing somewhat (with eReaders most recently). We're still in a wait-and-see period. At least digital-music stores went DRM-free after pressure from consumer groups and DVD/Blu-ray releases of films that come with a digital copy still provide the tried-and-true disc version (it even works used!).

Default_picture
January 30, 2012

I've always been torn on this one.  While I can completely understand a company wanting to stop used resellers from making money that publishers/developers don't get, I also believe in an individual's right to choose how to buy a game.  I still come down on the consumer's side in the end, though.

As for all the Xbox used game rumors, it won't happen.  It can't happen, at least not yet.  The only way to do something like that is require an Internet connection to check the game for new or used status.  There are still quite a few people without it and they would have no way to service those people.

Bitmob
January 30, 2012

Steven - In the UK the games I buy pre-owned are usually quite significantly different in price from the new version, or I'd simply buy new. What I dislike is the claims that buying used games hurts the industry. I don't think it does at all, aside from the example I've used there have been games I've bought pre-owned that I would simply never have paid £45 for, so my buying it pre-owned hasn't hurt a developer/publisher from whom I would not have bought the game in the first place.

I also like the car analogy when it comes to the pre-owned argument. I have never bought a brand new car, and buying from a local dealer puts no money whatsoever in BMW's pocket - in fact my buying second hand probably frees up the previous owner to buy his/her shiney new car from the company, just a guess though - but I wouldn't expect the car company withhold the steering wheel because I didn't buy it from them.

When I trade in a game at my local retailer to go toward the purchase of a brand new game then my use of a pre-owned market has benefitted the developer/publisher in that sale. I believe in free commerce and video games should be no different to cars, houses, DVDs, books or any other item that isn't a service, and thats where pay-to-play may well rear its head.

Blog
January 30, 2012

I've heard the car analogy before (with the wheel) and I've been a part of heated debates about it (on this very site).

 

One of the things I've always mentioned is that when you buy a new car these days it often comes with a free month of satelite radio, or OnStar or some other form of online support. That support is usually finite. If you sell that car, the next owner doesn't then get another free month or year of Onstar--they just get the car.

 

Likewise, these days a lot of Blu-ray and DVDs and comic books come with a digital copy. You can sell your DVD, but the next user doesn't also get the digital copy if you've redeemed it.

 

The single player experience in a used game remains free, but the online stuff doesn't always. Given that the online stuff has to be continuously supported with patches, servers etc, it's not hard to understand companies not wanting to hand that out to people who bought used.

 

A lot of people use the zero-sum-gain idea to say, "Well, if someone sold their game back then they're not still using it, so it's the same amount of online service." This isn't true, however, because those people can wait until the price goes down in a few months, buy a used copy for a fraction of the price (again without supporting the original publisher) and still use their original online pass.

The other argument about the car company that, again, doesn't jibe is this: You're not entering into an agreement with them when you buy a used game. You're entering into an agreement with Gamestop. It's like buying a used car from your buddy. If you buy a used car from your buddy and the wheel is gone, that's not Toyota's fault.

 

I know, that analogy isn't perfect, but it's just meant to illustrate that the other analogy isn't perfect either. We, as consumers, have to hold ourselves as accountable as we hold publishers. If we're not buying from them, we can't expect them to care about some mythical boycott. They're already losing our business as it funnels to used retailers.

I'm not saying either answer is an easy one--but I feel like gamers have done a poor job of supporting the originators of the art form in favor of rewarding a third party.

 

What I'd like to see is Gamestop paying a percentage of all used sales back to the developers. If that happened they'd still make a huge profit, but it would keep developers from losing tons of money on used sales and benefit everyone. As it stands now, I feel like consumers are backing a street vendor and then getting mad at Rolex when the watches don't work.

Bitmob
January 30, 2012

I do see what you're saying, but I still disagree. I have literally bought hundereds of games over the years and have spent thousands doing so. The overwhelming majority of games I have owned have been bought new. Looking at my shelf right now I see only one title out of some 25 that I bought pre-owned, in my case alone I'd hardly say that was a poor job of supporting the originators and I'm sure my case isn't unique. Used buyers aren't all buying used all of the time, and like has been mentioned here already, most of the trade in value is put against new games, so developers get paid. 

Dragging this car analagy kicking and screaming back to the forefront, there's a world of difference between support for a car radio, which is an accessory, and say, access to multiplayer in Battlefield 3, arguably the only reason people buy that particular game. But that's not really the point. The reason behind my writing this article lies in my perception that the future of multiplayer games like BF3, MW3 etc will be pay-to-play, something I personally would detest, and that the argument against pre-owned sales seems to me to be being used as the justification for it (as discussed in the Michael Pachter link). 

I do agree with what you say about retailers paying a percentage to the developers, it looks like a good solution that would placate developers and keep the used market viable so those people who can't afford to buy every game at full price can still get the games they want.

Lolface
January 30, 2012

I sincerely doubt that Microsoft will actually implement any anti used game functionality. It would hurt Gamestop, kill Gamefly (no used games means no rentals either), and more importantly, make people not want to buy it. If they do use an anti used game function, then all Sony has to do is release the PS4 without it, and Sony wins the next generation.

Default_picture
January 30, 2012

I don't take anything Kotaku claims seriously, and neither should others. That said, if true, it would be a bad move. If Microsoft really wants to go that route, make everything a digital download.

Even then, Steam allows some form of game trading...

Default_picture
January 30, 2012

If this rumour is true, all i see it as is a move to PC centric system, one they (the PC gamers) have been dealing with for years. They have also been dealing with cheaper titles for the most part, and frequent sales, digitally, and in retail. I also think this would be in line with the fact that by 2013/14, digital distribution will probably be a bigger part of the consoles life.

Titles would be tied to your account and not the console, so you could use your profile on someone elses console and play the game. Thats how i hope it'd be implemented anyway.

Imbarkus_picard_avatar
January 30, 2012

The stark truth laid bare in this article is that gamers, and users of software in general, have let their own definition of "owning" a piece of content be eroded by End User Licensing Agreements, online passes, and subscription-based models.  But the economic crisis has had a secondary effect besides the reduction in money available to spend, it has begun to make people more aware of how disposable their purchases have become, and how meaningless their purchases are if they can be taken away with a bit of legal and contractual trickery.  Your article as well as other rumblings across the interwebs stands in evidence of this, yet sadly also must face the vast ocean of glassy-eyed apathy that nearly any voice decrying an injustice must surmount.

Funny this article went up today, I just wrote a similar one, postulating a parallel world wherein consumers did push back against the Double-Dip, motivating Sony to continue to support backwards compatibility in both PS3 and Vita:  http://bitmob.com/articles/sony-2012-the-road-not-taken

After all, the possible harm from used games sales is really no longer relevant to a publisher once a title is no longer available new, in its release window.  Your categorical proof is really just empirical.  I can name plenty of examples of kids off the street who would have bought a $60 title new but were instead talked into a $55 pre-owned version of it with an adiitional 10% discount.  And yet we as consumers are finding even older titles commoditized into digital purchases that we must rebuy, even if we bought the original release new and never sold it back to Gamestop. 

Publishers need to stand up to their true enemy, another large corporate entity, and start enforcing sanctions that reduce or eliminate the new inventory sold to Gamestop unless they agree on a release-window embargo for used sales of certain titles.  All of these other tactics are introducing chicanery and inconvenience to their customers instead, and will only hurt them in the long-term.

46751_1625020548779_1334465187_3178439_3476136_n
January 30, 2012

I can't tell you how many times I've traded in used games for a new game hitting the market. I just did that for the upcoming Mass Effect 3 and I doubt you'll hear any developer at Bioware complaining that I'm doing such a thing. They still make their money from the new game, which is a POV I don't think a lot of developers take in to consideration.

People trade games for new games too. Sometimes they trade them for points to purchase DLC. The used game market helps keep new games afloat. The game industry better be prepared for a world of hurt when nobody pays 59.99 USD for a game that isn't a AAA title.

I don't believe that used games will die out that way. There are too many businesses (Redbox, Blockbuster, Gamestop) that fuel the game industry with fans of the video game genre. Until internet access is at it's prime, I have serious doubts about disabling used games on a console.

Default_picture
January 30, 2012

I've always had a hard time when big corporations tell me how and where I can use something I bought.  I paid good, hard and sultry cash for their game or whatever, and I want to use it the way I want to use it.

On the other hand I understand why companies do this. They want money. They like it. It's good for them and frankly it's good for us to give it to them, if they make a game we like. When we buy a title used the developers don't get the money they feel they deserve, meaning this effects their bottom line which effects the budget for future projects.

I know this sounds like trickle down economics and all that voodoo but it's a very different animal. When we buy something new the developers see a sizeable chunk of cash go directly into their coffers. They either don't get the money from a used purchase or they can't really track it. If they can't track it, it might as well not exist as far as profit is concerned. From where they stand, used games make no money. They don't care if you buy the sequel new.

On a third hand, I hate the petty solutions they have. I abhor that they omitted pieces of  Arkham City's story if it was rented or bought used. This feels childish and despite how awesome that game looks, and how much I want to play it, I won't. 

The game developers have so many better solutions and it's only a matter of time before all games are simply downloaded. If I buy a game new, I download it. It's been years since I've bought a console game new. 

I can't really decide how I feel about this. Can you tell?

Blog
January 30, 2012

To be honest I'm more conflicted than my point of view sounds. I merely voice the other point of view strongly because I feel it's so often omitted from the discussion.

 

I think my version is extremely optimistic. As in: If we can assume developers put every 5 dollar return they get back into making great games and then reward us all for eschewing used games in the future, then my logic works. However, if they use that 5 bucks to give a bonus to a CEO instead of reinvesting it in art, my logic is a complete failure.

 

So, as I'm being optimistic, I'm also aware of the pitfalls.

 

However, I think the same is true of the other line of thinking. It's all about the consumer, their rights and how showing loyalty will pay off. However, clearly enough money has been lost that companies thought it was a problem. Surely it's not the problem they percieve it to be, but we gamers have probably not been as loyal as we like to imagine ourselves either.

 

Nor is the core community, the type that posts at Bitmob for example, the same as the crossection of people who pirate games and who don't reinvest. It's a really tough topic.

Imbarkus_picard_avatar
January 30, 2012

By the way folks, if you're looking for clues as to whatever method might be employed to accomplish the rumored Microsoft plan to prevent used game sales, just look up the method that was devised for the failed DVD-competitor format Divx:  http://en.wikipedia.org/wiki/DIVX

Some exerpts from the Wikipedia:

"...a customer would buy a DIVX disc (similar to a DVD) for approximately US$4, which was watchable for up to 48 hours from its initial viewing. After this period, the disc could be viewed by paying a continuation fee to play it for two more days. Viewers who wanted to watch a disc an unlimited amount of times could convert the disc to a "DIVX silver" disc for an additional fee.[1] "DIVX gold" discs that could be played an unlimited number of times on any DIVX player were announced at the time of DIVX's introduction, but no DIVX gold titles were ever released.

Each DIVX disc was marked with a unique barcode in the Burst cutting area that could be read by the player, and used to track the discs. The status of the discs were monitored through an account over a phone line. DIVX player owners had to set up an account with DIVX to which additional viewing fees could be charged. The player would call an account server over the phone line to charge for viewing fees similar to the way DirecTV and Dish Network satellite systems handle pay-per-view."

"Many people in various technology and entertainment communities were afraid that there would be DIVX exclusive releases, and that the then-fledgling DVD format would suffer as a result. Dreamworks, 20th Century Fox, and Paramount Pictures, for instance, initially released their films exclusively on the DIVX format."

Robsavillo
January 31, 2012

And it failed miserably because consumers saw the lost value in this. I expect that any similar attemps by game companies would likewise result in compete failure.

Imbarkus_picard_avatar
January 31, 2012

Yep, and I'm glad it did!  But I imagine if publishers had shown the foresight to include unique code identifiers on their game disks, we'd all be spending a lot less time punching in activation codes for online passes, and Sony would have it's solution for tying a UMD purchase to a PSN version for Vita backwards compatibility there.

But of course they probably would have already abused that power in the way we presume Microsoft is considering for used games, in that an already-activated game would simply not work at all.

Still, it's scary and interesting to know it would only take a technology developed years ago for a simple optical disk to make this happen, as long as the console was connected to the internet (or, conceivably, a phone line).

Default_picture
January 30, 2012

Buying used doesn't support the developers.  So what?  Have you ever borrowed a DVD or game from a friend?  You didn't support the developers.  Unless, of course, you then went out and bought said product because it was so good you just had to own a copy yourself.  However, guess what?  You're not the majority of people.  For most people, and yes, even gamers, watching a movie or playing through a game is a one-time thing.  Once it's been watched or beaten, it's discarded or lent to a friend or traded in at a retail store.  THIS WILL NEVER STOP.  And it shouldn't.  We all understand it's important to support the creators of the products we love and cherish, but should we be trying to destroy the gentlemen's borrowing system just because these major companies feel like they deserve a little extra cash?  Which, let's be honest, the extra revenue they pull in is the equivalent to the used-game purchaser saving enough for a "Venti Mocha at Starbucks".  

Besides, the "extra cash" most publishers have been raking in (let's not kid ourselves, most of that moola is going to them, not the developers, as it's them who push for it) has been completely offset by the fed up customers who boycott any and all forms of DRM or day-one DLC bullshit.  Pardon my French.

Robsavillo
January 31, 2012

I've written about this many times, but it bears repeating again: The game industry assaults the secondary market at their own peril.

Used games add value to new games in that a used game helps the new game retain its value over a longer period of time. If I know that I can recoup $25 from a $60 purchase, them I'm more likely to spend the $60. Even after being repeatedly burned by poor games, I don't feel so bad because I got some of my money back.

But if I know that my $60 purchase becomes a coaster the moment I open it, I'm less likely to keep spending $60 on new games. Over time, I'm less likely to buy new games at all.

I spoke with Simon Rothman (who founded eBay Motors), and he explained this exact concept to me regarding used-car markets. Because people saw the resale value in their car purchases (and he explained how eBay Motors was able to nationalize used-car prices, and thus, make new-car purchases more attractive because they retained a higher resale value for longer), they were more likely to spend more on a car. Why? Because the secondary market puts money back into the hands of consumers, and research (according to Rothman) shows that people are likely to go out and buy new.

GameStop's own numbers support this: They sell more new software and hardware (in raw numbers), but they earn more profit from used sales. That means more locations in more places that sell more new content -- hell, there's a GameStop in every stripmall in America for a reason. Undercut used sales and you'll be undercutting new sales, too.

100media_imag0065
January 31, 2012

I've been screaming this for years. Nobody listens though. Most people just don't understand that we as consumers have the power the make and break these companies. We are in charge, not them. We make the rules, not them. If you don't like the fact that Call of Duty's campaign can be beaten in 3 hours. Stop buying it. If you don't like the anti-consumer Online Pass scheme and terrible DRM, don't buy the games.

It is a very simple concept, but the main reason why it won't succeed is because the large, large majority of gamers aren't in the know. They don't read gaming websites. They aren't in the forums. They hear about a game from a commercial or from a buddy and just buy it. If that particualr game is being torn apart by gamers like us for something clearly anti-consumer, these people wouldn't know about it.

Until gaming is more widely accpeted, and until the damning news that publishers keep away from the main news outlets starts appearing on more traditional news, these people won't know what's happening. As it is right now, the only thing that makes the news regarding video games is when someone doesn't like the violence, or sex scene.

Mikeshadesbitmob0611
January 31, 2012

Just a suggestion, but maybe the reason nobody listens is BECAUSE you've been screaming it. Even-tempered and well-written discourse beats out vitriol any day. I'm just as angry as you -- even moreso -- but I know that ranting just makes us all look like animals in the world's eyes. That doesn't help us.

Robsavillo
January 31, 2012

I'm sure Ed didn't mean that literally, Michael.

Mikeshadesbitmob0611
January 31, 2012

Of course. Screaming in public gets you put away. The spirit of what I said remains, though.

Default_picture
January 31, 2012

Don't worry Michael. I've heard far worse things on my old articles for my college newspaper, the Daily 49er. Ed's just being Ed.

100media_imag0065
February 01, 2012

Hey "Ed's just being Ed" is my catchphrase! I have loud opinions. I know it, but I certainly didn't literally mean I was screaming anything. Sometimes people take my comments as being cynical, or cold, or just unfair criticism. However, that's just me being me.

I am never, ever going to shy away from voicing my opinion. I don't attack people for having a different one than mine. I don't (usually) resort to name caling (most of the time) when people (idiots) don't agree with what I'm saying (preaching), but those who know me know that they are always going to get the most honest answer out of me.

Even if I know they won't like it, I got to say it how it is. It's just Ed being Ed. My comment just boils down to the simple fact that it really grinds my gears when people don't understand that we are the ones in control. We quite literally have the power to build and destroy any company whose business practices we love or hate.

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