Retailer and Tech Developer Battle Over Used Games

July 13, 2010 -

At the ongoing Develop Conference in the UK, a representative from GameStop Sweden and the CEO of a new company attempting to make games as easy to play and share online as YouTube videos got into a bit of a dustup over used games.

GamesIndustry.biz details the flare-up between GameStop’s Niall Lawlor and InstantAction chief Louis Castle. Lawlor told Castle that the used game business helps GameStop preserve its margins, but that, “We don't like being in the used business, it's very difficult to manage.”

Lawlor said that without used game sales, GameStop would not be in business.

Castle answered that selling used games would quicken the demise of brick-and-mortar stores, adding, “While you're preserving some margins, used is accelerating changes. He continued, "I can see the train wreck, it's coming. Pretty soon everyone is losing money. Used is accelerating the decline of profitability for publishers. The oxygen is being sucked out of the room.”

Castle previously labeled retail stores as a “parasite,” which “abused the industry horribly.” When asked if his new venture would kill physical store locations Castle replied, “I hope so.”

In related news, the company who supplies Gamestop, Wal-Mart, 7-Eleven and Toys “R” Us (among others) with the technology needed to manage their used games business is close to releasing an app that will let iPone users administer their own personal game inventory. Game Trading Technologies’ GameBook Mobile application will let users scan in their game inventory, locate stores and, perhaps most importantly, track the market values of games in real time to see if they are trending up or down, allowing users to make trade-in decisions accordingly.

President Todd Hays said that the app would let users, “make timely, well informed trade-in decisions for every title, system, and accessory they own.”

No release date for the app was provided.


Comments

Re: Retailer and Tech Developer Battle Over Used Games

Rather then comparing other mediums let's stick within games. Game rental establishments actually purchase their games and movies from a special type of seller. This gives them special licenses to rent out the movies and games. I know because I grew up in a small town with a rental shop owner and she showed me the weekly order book she received. It included other supplies (plastic cases, etc.) but also listings for new movies and games. I noted that at the time a new game for me at walmart (the only game retailor in my area) was about $50 on launch day. For her to buy a single copy of the same game for rental it was $65 to $70 because of the increased cost for the rental license. Are books the same? I don't know, but I hazard a guess it is something similar, an increased up front cost to compensate for the rental.

Re: Retailer and Tech Developer Battle Over Used Games

Without used games GS could not keep its B&M locations thus reducing sales of new games.....why is this so hard to understand?


I have a dream, break the chains of copy right oppression! http://zippydsmlee.wordpress.com/2010/05/21/cigital-disobedience/


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Let's renegotiate them.

---

http://zippydsm.deviantart.com/

Re: Retailer and Tech Developer Battle Over Used Games

Yeah, and you know what else pisses me off?  Libraries.  People can just read books without compensating the publishers.

Re: Retailer and Tech Developer Battle Over Used Games

I was under the impression that book publishers were in fact compensated for books being used in libraries.  I'm unsure of the mechanics of it, but I would assume it's similar to the tax you pay if you want to play music at some event (weddings for example (and it costs more if you let people dance!)).

All the money from it gets stuck in some fund and distributed to the various publishers (using some arcane methodology to work out who gets how much I'm sure).
===============

Chris Kimberley

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Chris Kimberley

Re: Retailer and Tech Developer Battle Over Used Games

Libraries pay wholesale(possibly retail) prices for the books they lend, but do not pay anything more. So the publishers/authors do get compensated for the initial sale, but the right of First Sale allows for libraries to lend those copies without further compensation to the publisher/author.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: Retailer and Tech Developer Battle Over Used Games

In soem small way they are compensated, they perchase of item being lent out and the ability for the CP owner to deny a item to be lent out.

 


I have a dream, break the chains of copy right oppression! http://zippydsmlee.wordpress.com/2010/05/21/cigital-disobedience/


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Let's renegotiate them.

---

http://zippydsm.deviantart.com/

 
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Wonderkarpgranted, 2 of those instances are sited sources, and the rest is divided between 2-3 different stories11/21/2014 - 2:24pm
E. Zachary KnightWow. Quinn's name shows up 33 times, but it isn't about her.11/21/2014 - 2:21pm
Wonderkarpalso Activision makes me sad with that. Glitchs are hilariously fun(so long as they dont happen 100% of the time)11/21/2014 - 2:18pm
WonderkarpHe's one of the 5 men linked to Zoe Quinn. works at Kotaku. Kind of an ass11/21/2014 - 2:18pm
Andrew EisenHe's a games journalist.11/21/2014 - 2:13pm
Michael ChandraWho is Nathon Grayson?11/21/2014 - 2:07pm
MaskedPixelantehttps://twitter.com/BroTeamPill/status/535841124884418560 Source.11/21/2014 - 1:49pm
Andrew EisenFun Fact: Zoe Quinn's name shows up in that GamerGate press docket 33 times! Nathon Grayson's name? Only eight. Guess which one's the game journalist.11/21/2014 - 1:48pm
MaskedPixelanteApparently Activision is issuing copyright strikes against streamers who show off CoD glitches. Out now but I'll source when I get home.11/21/2014 - 1:22pm
Andrew EisenIf you see something you think we should cover, let us know!11/21/2014 - 1:11pm
WonderkarpAnd the GamerGate Girls Huffington Post Video should have been on this site weeks ago http://www.huffingtonpost.com/2014/10/15/female-gamers-gamergate_n_5990310.html11/21/2014 - 12:46pm
Wonderkarpits not getting dropped, Monte. Its become a defiant cry in the face of adversity and lies11/21/2014 - 12:42pm
Wonderkarphttp://press.gamergate.me/dossier/ The GamerGate Press Site. All the Information and Evidence that supports their arguments and goals. This is the 5th time I've posted this.11/21/2014 - 12:40pm
MonteIts why i feel that they would be better off dropping the gamergate tag. The tag is far to tainted and they attract the anti-fem trolls. Find a new tag, loose the baggage and then you can have a discussion on journalism free of distractions11/21/2014 - 12:40pm
WonderkarpGG got together and put together a press site that contains all their evidence and arguements in a single easy FAQ. I've posted it here many times to silence.11/21/2014 - 12:36pm
MonteIt does seem like GG spends more time trying to defned itself from accusations than actually talking about journalism; hence one reason why they keep coming back to the topic of feminists despite them having nearly nothing to do with gaming journalism11/21/2014 - 12:36pm
Wonderkarpwhat do you mean "Their own fault"? are you saying its Gamergates fault that the 11 dead gamer articles were written? that it was GamerGates fault when they got together to cry out that they were shouted down by louder megaphones?11/21/2014 - 12:35pm
NeenekoThere is unity of attack, and unity of defense, but not of message or identity. Which the group's own defensiveness has blinded to them since it is chalked up to 'media is out to get us' as opposed to their own fault.11/21/2014 - 12:10pm
NeenekoOh unity I will give you, it is one of the group's weakest points.11/21/2014 - 12:07pm
WonderkarpI dont think so. There's a lot of Unity in Gamergate. OPSkynet has only strengthend the group and brought people together. and I spent a couple months "Gorillas in the Mist"ing the group11/21/2014 - 11:54am
 

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