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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Matthew Wilsonthe thing is in japan holidays do not drive sales, and x/y came out everywhere on October 12th last year. This is Nintendo thinking japan is more important than the rest of the world, and that has not been true since the early 2000s.09/14/2014 - 5:49pm
InfophileA glitch in SSB 3DS is causing players to get banned for using Peach: http://www.polygon.com/2014/9/14/6147417/report-glitch-serves-up-one-day-bans-for-smash-bros-players-who-pick09/14/2014 - 4:28pm
Jessy Hart@ZippyDSMlee Hopefully!09/14/2014 - 11:32am
Neeneko@Infophile - as someone who dealt with release schedules, holidays and other releases are just the begining ^_^09/14/2014 - 11:23am
ZippyDSMleeJessy Hart:I am sure they will be back as DLC...09/14/2014 - 10:31am
Jessy HartI miss the Ice Climbers :(09/14/2014 - 9:55am
InfophileSimultaneous worldwide releases aren't as simple as they seem. Different places have different holidays, plus different other releases to contend with. So a little bit of staggering makes business sense09/14/2014 - 3:25am
MaskedPixelantehttp://www.joystiq.com/2014/09/13/excavated-et-cartridges-will-be-sold-distributed-to-museums/ Alamogordo is going to be selling off a bunch of the games from the Atari Graveyard.09/13/2014 - 9:02pm
Matthew Wilsonnintendo should have done a world wide release for smash. The game is all over twitch.09/13/2014 - 12:47pm
ZenYeah, I got a set of codes yesterday and have been enjoying the heck out of it. Limited characters...but it is a demo lol. Glad there is no play limit though which...well...FINALLY. Now, any ideas why it tracks the coins?09/13/2014 - 10:48am
Andrew EisenThe verbiage was "select Platinum members" so yeah, if it's not a random sampling, the other requirements are hidden. Still, everyone gets the demo next week.09/13/2014 - 10:39am
MaskedPixelanteThere appears to be some other factors determining whether or not you get codes. Some people I talked to said they didn't get codes despite meeting all the announced conditions.09/13/2014 - 9:36am
quiknkoldI got Smash Bros Codes!09/13/2014 - 6:42am
InfophileBasically, anyone who got Platinum level on Club Nintendo last year and has e-mails enabled got four codes yesterday (including me) for early demo downloads. Don't know why Nintendo is doing it this way. Maybe they plan more Club perks like this?09/13/2014 - 4:20am
Matthew Wilson@wym I am just hoping they do not screw up their netcode, but given their history I am not holding my breath.09/13/2014 - 12:05am
Andrew EisenThe Smash 4 demo should be available to all 3DS owners on Sept. 19.09/12/2014 - 8:48pm
WymorenceLucky. I've been drooling at that game hoping they can get it to work for a portable since buying my 3DS09/12/2014 - 8:36pm
MaskedPixelanteMan, the way they animate Mega Man in Smash 4 is so accurate to his sprite it's scary.09/12/2014 - 7:28pm
MaskedPixelante3DS version.09/12/2014 - 3:23pm
Wymorence3DS version or WiiU version?09/12/2014 - 3:22pm
 

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