Video game retailer GameStop announced that it suffered a $624 million net loss in revenue for the third quarter that ended on October 27. While GameStop said that results exceeded expectations for Q3, it highlighted the fact that sales were down on new software, used software and new hardware. Total sales fell approximately 8.9 percent to $1.77 billion while store sales also fell 8.3 percent. Overall, GameStop recorded a consolidated net loss of $624.3 million.
Online marketplace eBay is offering a unique program to give you cash for that old console you have laying around so that you can buy a new console like the Wii U... You can exchange select models of the Wii, Xbox 360, PS3 and PS Vita for cash beginning today and up until November 18 - which just happens to be release day for the Wii U in North America. You can get started with the transaction at eBay's Instant Sale page.
While some game publishers and developers have come out hard against the sale of used games, GameStop's president Paul Raines says that the myth that used games are cutting into new game sales is just - a myth. Speaking to Gamasutra, Raines said that 70 percent of all income derived from used game sales by consumers is almost immediately spent on purchasing a new game - to the tune of $1.8 billion to the US games industry every year.
GameStop is apparently paying close attention to the recent decision by the European High Court that digital purchases could legally be resold. Speaking to GameSpot, GameStop CEO Paul Raines said that the video games retailer is seriously looking into the idea of creating a business out of reselling digital downloads in Europe, but cautions that it is too early for him to say if it is something they will get into. At this point the company is simply investigating the idea.
Earlier this month, the European Court of Justice ruled that game publishers cannot stop European consumers from reselling their downloaded games. Not only that, but a publisher may have to facilitate such a transaction by allowing the recipient of the sale to download their “used” copy from its website.
Oh yeah, they’re going to love that.
The European Court of Justice has made a ruling that could cause lots of problems for publishers in Europe. The highest court in Europe has ruled that game publishers cannot stop European consumers from reselling their downloaded games.
"An author of software cannot oppose the resale of his 'used' licences allowing the use of his programs downloaded from the internet," the ruling read. The Court said the exclusive right of distribution covered by a license is "exhausted on its first sale".
According to a new report (Q1 2012 Games Market Dynamics: U.S.) from research firm NPD Group, estimated total consumer spending on used and rental game content in the first quarter of 2012 reached $525 million, and content in digital format (full game and add-on content downloads, subscriptions, mobile games and social network games) generated $1.38 billion. This is in addition to the $1.5 billion spent in the U.S. by consumers on new physical video and PC game software.
If you were concerned that Nintendo might consider some type of technology or software to block the use of used games on its new Wii U console, this GameSpot report should put your mind at ease. Speaking with GameSpot, Nintendo of America marketing exec Scot Moffitt said that he doesn't know if Nintendo has a formal position on used games.
The First Sale Doctrine has been an important part of copyright law for well over a hundred years now and an important part of the gaming culture for the last 30 years or so. Unfortunately, these last few decades have also seen a lot of effort to erode what protections consumers have to resale their property without the permission of the copyright owner. Once again, the Supreme court is poised to rule on how far the protections the First Sale Doctrine go when it comes to copyright.
Despite all the talk about a next-generation console future where consumers are not allowed to play their used games by evil platform holders like Microsoft and Sony, retailer GameStop says that such a future is unlikely. The video game retailer firmly believes that the next generation consoles from both Sony and Microsoft will handle the business of retail trade-ins and used game sales the way they always have - by mostly ignoring them. The company made its remarks during an investor meeting with analyst firm Baird Equity Research.
Former THQ executive Danny Bilson recently told Eurogamer that the used game industry is "probably" good for consumers but not so good for publishers. So how do game makers combat the "evils" of the used game market? By creating more post-launch content that consumers think is valuable. Bilson, the now former executive vice president of core games at THQ recently left the company to pursue "other interests."
GameStop International and Sony Computer Entertainment Europe have partnered to bring PlayStation Network DLC to 1,600 retail video game stores throughout Europe and Australia. This includes stores in Australia, New Zealand, France, Italy, Spain, Germany, Austria, and Switzerland. Consumers can purchase downloadable content in stores using cash, gift cards, and in-store credits from trade-ins to buy the DLC.
In the latest episode of GameTrailers' Pach Attack, Wedbush Morgan analyst Michael Pachter talks about used games and why they are an integral part of the video game ecosystem. In fact, he claims, the industry would be in serious trouble without them.
"I think the industry will disintegrate; I think there will be no more video games if next-gen consoles don’t support used games. You hear that, Sony and Microsoft? You have to support used games," he said during the show.
Video game retailer GameStop announced its first quarter 2012 financial results this week, showing that physical retail numbers were down, while used games and digital sales were up. While the company saw a decline in overall net income and sales for the quarter, its reported income was in line with earnings targets.
In a recent episode of GameTrailer's Bonus Round, Wedbush analyst Michael Pachter said that Sony's Jack Tretton is strongly opposed to the idea of a console blocking used games. During the show, Pachter recalled a conversation he supposedly had with the SCEA president at an E3 meeting. He claims that he asked Tretton directly about the rumor that Sony's newest console ("Orbis") would not support used games.
Blockbuster UK has launched a rewards program specifically for gamers called "Blockbuster VIP Gamer" and just by signing up members receive 2,500 points. The idea of the program is to earn these points that can then be used for a variety of perks including discounts on purchases, free rentals, free software, and - if you can amass a large amount of points - free hardware.
Episode #1 of the Super Podcast Action Committee takes on the thorny issue of used games. Why do some developers and publishers hate them so much and why do they think it would be "awesome" if the next generation of home consoles from Sony and Microsoft blocked used games altogether? We try to figure it all out... Hosts Andrew Eisen and E.
You may recall that Crytek director of creative development Rasmus Hojengaard said last week that a next-generation console that was capable of blocking the use of used games would be "awesome." This week the studio is backing away from that statement after fans gave them a piece of their mind. Hojengaard said the following when asked about such a console last week during the conclusion of this C&VG interview:
While some developers are cautious to approve of next-generation game console systems impeding the use of used games software, Crytek's director of creative development is not one of them. Speaking recently to Computer & Video Games, Rasmus Hojengaard said that he thought it was "weird" that second-hand gaming is allowed at all.
G4TV's Blair Herter and the rest of Feedback crew dive headfirst into the topic of used game sales. Publishers say that used game sales are hurting the industry, while retailers like GameStop and most consumers disagree. Watch the latest episode of the show to your left.
Everybody loves Dunkin' Donuts (or equivalent depending on your geographical location), but a new social game trading network contends that it is a perfect location to trade those used games face-to-face. The site is called www.waygoz.com, and its mission statement is to take the trading offline and away from places like Gamestop where gamers don't get a decent return on their sales.
In a recent interview with GamesIndustry International, Silicon Knights front man Denis Dyack says that used games will cannibalize the industry if sales continue unabated. He argues that games no longer have a "tail," referring to how games used to have a longer shelf life at retail months after launch.
During a conference call to discuss its latest results, US video games retailer GameStop tried to put to bed a rumor (that surfaced in January) about the next Xbox console from Microsoft would have some kind of anti-used game detection technology in it. GameStop's CEO tried to put the rumor to bed, calling the whole idea "unlikely."
Peer-to-peer game trading site GaBoom has released new data on what games its customers most frequently trade. The data, the result of paying attention to what its 12,500 users want to keep and get rid of, is broken down by publisher, platform and finally game title.
CD Projekt RED, makers of The Witcher 2, say that there are real issues that could arise from Microsoft attempting to block the use of used games in its next generation console. Rumors have surfaced that Microsoft plans to block the use of used games on its new platform - a rumor many game developers heralded as a "good idea." Used games have become a punching bag for publishers and developers in the last several years who spend a lot of money developing games only to see marginal returns.
"I Feel Used" quips Volition Designer Jameson Durall in a post on #AltDevBlogADay. In a lengthy post Durall rails against the used games market and how it is "significantly impacting the revenue" developers receive. He talks about how great it is that developers are coming up with new ways to recoup money from the used games market such as online pass codes:
EA's next chapter in the SSX action snowboarding game series will have an Online Pass system within. All players (both those who buy new and used) will be able to access the game's Explore and Global Events multiplayer modes, but any in-game credits earned will be withheld from the player until an online pass code is activated. That code is included in new copies of the game, but used game buyers will have to pay $10 for a code.