Second Hand Games market is more damaging than Piracy
Wednesday, May 12 2010 @ 02:32 PM BST
Contributed by: Admin
Co-founder of Blitz Games Studios, Andrew Oliver, has said that the second hand games market is having a more damaging effect on the games industry than Piracy.
He said that because of the amount of times a game is changing hands thanks to trade in services, the royalties going back to publishers can be effectively quartered.
"I understand why players do this, games are expensive and after a few weeks of playing you've either beaten it, or got bored of it so trading it back in to help pay for the next seems sensible when people are short of cash," says Oliver.
"The money going back up the chain is a fraction of what it was only a few years ago. This is a much bigger problem than piracy on the main consoles."
The pre-owned market appears to be growing. Argos, Asda and Tesco have all started game trading services this year.
But.... according to an old (2007) article in The Ledger, the small shops that sell video games have to rely heavily on second-hand sales in order to keep up with their chain-store competitors. By focusing on the used games side of the business, retailers can control the pricing of their inventory, whereas with new games, the price is fixed and a retailer may only make $10 or less for one title. With the used games, buying low and selling high has allowed a lot of these stores to stay open.