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Trafficking...The Gaming Underworld...

Wednesday, July 01 2009
Written by Ramel Hill

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Let's say you have a product...something you toiled over for months... you spend a good 13 million dollars into it.  It turns out fantastic.  You sell it to 575,000 thousand people through retail outlets.  In reality close to 1,000,000 people or even more have purchased and enjoyed your product.  Would you be upset? 

 

Game Developers sure are...so are the publishers as well!  Gamestop has emerged as public enemy number one in the eyes of publishers and developers.  For us, the consumer it is a slice of heaven.  Are we hurting or helping the gaming industry by purchasing used copies of video games? A while back ago, I spoke on getting your money's worth.

 

Gamestop maybe doing the industry wrong, but where else are you going to pick up a used copy of Mercenaries 2 for 17.99 when at Walmart it could be priced anywhere from 30.00-50 bucks.  I even stopped in  Gamestop over the weekend when they had a buy 2 get one free.  Those are some great deals for consumers.  You could spend 110.00 on two games that just came out and get another for free.  That is like two weeks from now buying Red Faction Guerrilla and Prototype used and getting Infamous for free!

As a gamer I don't feel bad when I get deals like this.  I do support the industry and purchase many games brand new.  I am a collector of games and for the most part keep every game I buy.  (I have around 66 xbox360 games, 11 PS3 games~I just got the system in March and 5 wii games~that's all I need for now) 

I don't think the game industry has a problem with used game sales...I believe they have a problem with the volume of used games sold by Gamestop and the profits made by these sales.  

 

Gamestop has taken a lot bad hits over the years..from their price gouging on used games purchased from consumers to their unfair trade in policy...to being known to purchase stolen items...even poor treatment of their employees.  The bottom line people will shop at Gamestop because of their selection of used titles at decent prices.  Until something comes along to offer competition...they will continue to do this.

As a consumer I never trade games into Gamestop.   Why would I take a game I paid 40-60.00 dollars for  and receive 20-30 bucks in store credit in return.  If more consumers would stop using old games as currency Gamestop would change their tactics.  We fuel their pricing structure as consumers...but there are other options out there that could lead to the end of the Gamestop juggernaut choke hold they have on used games.  But for some once they play a game and beat i..they are done with it so why keep it.  

   

 

Online ebay has always been an option for gamers seeking some deals on used titles.  However there are two new sites that gives gamers a chance to grab a piece of the used game pie.  One site is called Switchgames.com This site offers users a chance to put gamers in control.  On this site you can trade games with other gamers for items you feel are of equal value.  The site offers options to gamers not found in any retail stores anywhere.  Another site is called Goozex.com. On this site gamers register trader their games for points and use those points to get other games for only $1 per trade.  Both sites look nice and are a haven to the patient gamer who is constantly recycling their collection to get the newest titles...but let's face it...gamers are very impulsive and want to play their items right away.

Why wait a couple days on shipping when I could go the the store and return home in minutes with what I want to play...

With larger storage capacities attached to systems these days we may soon see companies starting to offer digital versions of new titles as downloads.  Publishers would see a bigger piece of the pie in terms of profits.  This is already happening with arcade titles on 360 and select titles on PS3 and old school titles on the wii...but when will see Major titles drop via download.

God of War III

 

God of War III could be a major hit I believe to be offered through this service.  Sony has the benefit in this because their systems have larger hard drives for the most part.  God of War III will have a set release date..sure but Sony has control of this title...why not offer it via download via midnight release style and let gamers get a chance to play the game hours before the stores open up.  People would take advantage of it.  Gamers will have their impulse buying urge fixed by being able to purchase games on demand at anytime any day...just a thought.

Well people do like to have that hard copy of their games.  This way you could take it over a friends house.  I myself fit into this group.  I want to be able to hold my game..call me old fashion going back to the days of blowing into the nes cartridge to get it work!  

Used games will always be force on the market..but many gamers do use their old games to put down as down payment (credit) towards new games being released.  Gamestop sells a lot of used games, but those clerks are always pushing to get people to put things on reserve.  And we all know and understand new games being purchased fuels the industry.  I am excited for this year and what it means to developers and gamers alike.  

        

Holiday of Sequels this year for sure!

Assassin's Creed 1 and 2 protagonist pictured above. 

 

With all the sequels being produced people will definitely stick to what has worked for them in in the past and purchase those titles.  There will also be people on the fence about a certain title...like let's say Left 4 Dead or Assassin's Creed if a gamer decides to purchase part 2 to either of those games it is a good chance they may pick up a copy of the original game as well or later to fill them in on the back story.  So let the landslide of games begin I know I am ready!!!  

Left 4 Dead 2 

 

COMMENT

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avatar squeak117
Thursday, July 02, 2009

Like you, I do prefer to have a hard copy of a game. I'll download a game on Steam if it's called for (have done so many times), but the big problem with that is that here (I don't know where else), we have to pick a download limit and pay that amount to our Internet Service Provider.


My family's deal is 25GB a month for however many dollars per month (probably around $70AUS). As soon as with hit that limit we get bumped down to dial-up speeds until the next month. If games were to be released via download only, it would hit us pretty hard.


Also, what you say about Gamestop... I'd say EB Games here is actually the worst with pricing; they just have the benefit of being the major game seller. JB Hi-fi is where the good prices come but for piece of mind people just want to buy games from a place that exclusively sells games.


Great work on the article.
avatar kalel06
Thursday, July 02, 2009

Man, I stopped pre-ordering when I saw they had like 2 million copies of Halo 3 Legendary the next day at my gamestop. Burn!

Gamestop sure does have a grasp on the retail game market and it's gonna be really interesting to see when digital downloads pick up even more. I like hardcopies, but some games aren't worth the disc they are burned on.

In most cases I would definitely rather have the download, but then there are the classics or like you said, the games you want to bring over to a friend's house.
avatar d-reno
Thursday, July 02, 2009

It may sound surprising but the biggest retailer in video game sales is not gamestop/eb games.

http://dvice.com/archives/2008/11/wal-mart_decl...

But they get the bad press because of their used game price rapping....

I Like the pre-order not for the fear of not having something at release time...but it gives me a chance to pay slowly on multiple titles...this way I don't feel the pinch of getting 4 new games at once (240.00 bucks ouch!)
avatar kalel06
Monday, July 06, 2009

Hmm...that's interesting. But I guess Walmart would be the leader. They kick every other retailers ass. I hear that the reason there aren't any in NYC is because they would have a monopoly over so many stores. Very interesting.

I guess to start paying for a game slowly it makes sense to pre-order. It softens the blow.
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