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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MaskedPixelanteNumber 3: Night Dive was brought to the attention of the public by a massive game recovery, and yet most of their released catalogue consists of games that other people did the hard work of getting re-released.04/17/2014 - 8:46pm
MaskedPixelanteNumber 2: If Humongous Entertainment wanted their stuff on Steam, why didn't they talk to their parent company, which does have a number of games published on Steam?04/17/2014 - 8:45pm
MaskedPixelanteNumber 1: When Night Dive spent the better part of a year teasing the return of true classics, having their big content dump be edutainment is kind of a kick in the stomach.04/17/2014 - 8:44pm
Matthew Wilsonhttp://www.giantbomb.com/articles/jeff-gerstmann-heads-to-new-york-takes-questions/1100-4900/ He talks about the future games press and the games industry. It is worth your time even though it is a bit long, and stay for the QA. There are some good QA04/17/2014 - 5:28pm
IanCErm so they shouldn't sell edutainment at all? Why?04/17/2014 - 4:42pm
MaskedPixelanteNot that linkable, go onto Steam and there's stuff like Pajama Sam on the front-page, courtesy of Night Dive.04/17/2014 - 4:13pm
Andrew EisenOkay, again, please, please, PLEASE get in a habit of linking to whatever you're talking about.04/17/2014 - 4:05pm
MaskedPixelanteAnother round of Night Dive teasing and promising turns out to be stupid edutainment games. Thanks for wasting all our time, guys. See you never.04/17/2014 - 3:44pm
Matthew WilsonAgain the consequences were not only foreseeable, but very likely. anyone who understood supply demand curvs knew that was going to happen. SF has been a econ/trade hub for the last hundred years.04/17/2014 - 2:45pm
Andrew EisenMixedPixelante - Would you like to expand on that?04/17/2014 - 2:43pm
MaskedPixelanteWell, I am officially done with Night Dive Studios. Unless they can bring something worthwhile back, I'm never buying another game from them.04/17/2014 - 2:29pm
PHX Corphttp://www.msnbc.com/ronan-farrow/watch/video-games-continue-to-break-the-mold-229561923638 Ronan Farrow Daily on Video games breaking the mold04/17/2014 - 2:13pm
NeenekoAh yes, because by building something nice they were just asking for people to come push them out. Consequences are protested all the time when other people are implementing them.04/17/2014 - 2:06pm
Matthew Wilsonok than they should not protest when the consequences of that choice occur.04/17/2014 - 1:06pm
NeenekoIf people want tall buildings, plenty of other cities with them. Part of freedom and markets is communities deciding what they do and do not want built in their collective space.04/17/2014 - 12:55pm
Sora-ChanI realize that they have ways getting around it, but one reason might be due to earthquakes.04/17/2014 - 4:42am
Matthew WilsonSF is a tech/ economic/ trade center it should be mostly tail building. this whole problem is because of the lack of tail buildings. How would having tail apartment buildings destroy SF? having tail buildings has not runed other cities around the US/world04/16/2014 - 10:51pm
Matthew WilsonAgain the issue is you can not build upwards anywhere in SF at the moment, and no you would not. You would bring prices to where they should have been before the market distortion. those prices are not economic or socially healthy.04/16/2014 - 10:46pm
ZippyDSMleeYou still wind up pushing people out of the non high rise aeras but tis least damage you can do all things considered.04/16/2014 - 10:26pm
ZippyDSMleeANd by mindlessly building upward you make it like every place else hurting property prices,ect,ect. You'll have to slowly segment the region into aeras where you will never build upward then alow some aeras to build upward.04/16/2014 - 10:25pm
 

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