EA's "Project Ten Dollar" explained
Discouraging second-hand sales.
Systems like Mass Effect 2's Cerberus Network, Dragon Age's DLC network and upcoming launch add-ons for Bad Company 2 are all part of something EA calls "Project Ten Dollar".
That's according to a report in BusinessWeek talking about CEO John Riccitiello's plan to reduce second-hand sales, which the company makes no money from.
The idea, apparently green-lit last autumn, is to include a coupon or redeemable code with every new game which gives the buyer another chunk of content. Without that code, second-hand buyers will have to spend $10 to obtain the missing extras.
Riccitiello told BusinessWeek that despite 11 straight quarters of losses EA is on the up again thanks to its 2010 line-up and strategies like Project Ten Dollar. "You see a six-foot hole that we're in. I'm telling you that we were in a 20-foot hole and we've climbed 14 feet out of it," he said.
As well as providing consumers more reasons to buy games new rather than second-hand, EA also plans to try and stop people trading their games in by tacking multiplayer onto everything - something that rival Ubisoft this week said it was also planning to do.
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Comments (116) Latest comment 2 years ago
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As long as that code is not needed to complete or even enjoy the game i'm not too bothered but if the game is effectively useless without the code then i'll want all sorts of assurances that the code will be valid for the life of the game or is it limited like in ME2?
Oh well, it's just another thing i will weigh up when appraising EA and Ubi games purchases from now on. Especially Ubi.
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Companies certainly need to do something to try and boost new game sales, and this is certainly preferable to game-crippling limited-install DRM.
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They got away with it once with Mass Effect but if they do it with every game they can should their tat up their arse !
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Looking at the launch period specifically, a preowned copy of a new release is probably only going to be ~£3 cheaper than the full price title anyway, going by the likes of Game and GameStation. It makes more economic sense for people to fork out the extra couple of quid. This is the issue here - the problem isn't people who buy a game for £10 two years down the line, it's about the launch period undercutting by the retailers.
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do you mean the "can be shut down at any time" message that pops up when you first register? i think that's the boilerplate babble EA throw at you - unless there are specific online features like multiplayer that require servers etc, the single player content you've already downloaded should work for as long as you have it installed, even if they decide to kill the cerebrus network at some future point. of course if you buy the game "new" but a month after they shut down cerebrus you could have some problems getting the content onto your console...
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This is the facts folks. Imagine if you made widgets and sold them for £10.00. You had 100 people who wanted a widget but only 60 of them purchased it. However the other 40 people bought the widget second hand for £8.00 within six months of it's release. Wouldn't you want to also make some money from the other 40 people? Of course you would! EA is simply being smart about second hand sales. In the end they will still make money on DLC from second hand sales anyway so it's a win-win.
In the end EA making money means games are produced. You like video games? They don't grow on trees.
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MrMarc, some of the DLC is out day one and for both of them games these pieces of DLC are free. No one can honestly complain about a company trying limit people buying a game second hand can they?
To me it's just as bad as piracy, maybe even a little worse, as the people who pirate games are more than likely not going to buy most of there games. Whereas I believe second hand buyers would as they are only really spending £10 less than they would if they bought it first hand.
I was brought up to believe that people deserved to be paid for the work they've done. For some reason people seem to downplay workers in the entertainment industry as slaves who should do are bidding.
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If i can buy the game new in a years time and still have a valid code and the DLC access then it's fine otherwise it's a pre-order bonus and i'll bear it in mind when considering the game.
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Yeah, I don't like all these pre order bonus codes that crop up depending on who you buy a game from. Some standard code in new copies of the game seems like a reasonable incentive to pick it up new though.
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I think it's only fair that game makers should have crack at some income from Pre-owned guys.
I read an article a while ago that something like 1.5 million people had bought Deadspace, but usage stats on things like xbox live and PSN showed that over 3 million had played the game. This wasn't an article ranting about piracy btw.
It's pretty disheartening as a games business to find you only got revenue from half the people who paid for the product - those who bought it first hand.
I think something like "Project Ten Dollar" is a viable compromise between the right of resale and buying preowned and the right of the devs to actually mak money without ripping people off.
I guess it only works if it's done right.
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edit: We don't have such established shop trade-in programs in my country(we sell our games individually on online auction) so information is welcome.
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It's a slippery slope.
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A) no longer own.
B) have already been paid for.
It's been said before but, software houses don't seem to be getting it. You wouldn't buy a table, TV, CD, laptop or clothes or indeed anything and then expect to pay again if you sold it to your neighbour or a second hand shop. Why then do these stupid companies think that they have any right to charge someone else for buying your property from you! Do they not grasp the concept that once you have paid your money they no longer own the thing!
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Dragon Age DLC, there is something you register for. AC2 you have to register seperately for Ubipoints or whatever that tosh was (didnt actually bother signing up for that). ME2 again seperate registration for Cerberus even though I owned DA
If this is the trend going forward then it either needs to all be linked into gamertag (PSN user for PS3 or whatever) as trying to use different passwords to register for each new EA/Ubi game I buy will result in chaos.
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Sales won't drop, if anything they will rise. Second hand sales do not count towards the publisher, they count against.
The table example would be more like you selling a table on ebay without a leg, the leg only comes with a table that is bought at retail brand new.
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You seem to have missed the point. I wouldn't buy a table if the vendor held back a leg and required me to pay extra for it and I doubt you would either.
The move by EA means that people will be reluctant to buy used EA games in future simply because they will need to pay again to get all of the content. This in turn will mean that you and I have trouble selling the games to shops like Game etc. etc. as the buyback prices will ultimately fall as shops start to have trouble selling the games on. This then has the knock on effect that we will buy less new titles as the cost can't be offset anymore.
While I'm being a bit dramatic I would hate to look back at this point in gaming history and have to say this is where it all went tits up.
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People not buying pre-owned games is the entire idea of this. Pre-owned sales go straight to the retailer, the publisher and developers get nothing for it. This way people are encouraged to either buy a new copy or to spend the money online to get the additional features. This ultimately helps the people who made the game, pre-owned sales are of no concern to them.
Publishers had tried to discuss this before with retailers saying they should have had a "publishers cut" from pre-owned sales, retailers said no. This is quite simply the answer to it.
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Amen brother, where's the shovel!
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You are correct that trade-ins can fund the sales of new titles, but in no way do they help maintain or [massively] increase them.
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The big difference here is a culture and volume thing. Other than cars and houses, can you name me any other product where pretty much half (going on the Dead Space numbers) of all sales come from used products? I'd be surprised if the number of TVs and laptops bought second-hand was even at 5%, let alone the 50% we are talking here. That creates a big problem. In your nearest city centre (a big one, rather than local village high street, where lots of people shop), you might have one indie shop on a back-street selling second-hand CDs. You might have a couple of charity shops selling 10-year old clothes for a pittance. But how many prominent shops are there selling second-hand TVs and laptops? Almost certainly none.
Contrast this to games, and look at the big high-street players. Game and Gamestation stores have considerably more pre-owned stuff than new stuff, and really push it because it maximises their margins. CEX I think are 100% used, and HMV are increasing their pre-owned game shelf space. But HMV don't sell pre-owned CDs or DVDs, despite the fact they'd have bigger margins on them, because the demand isn't there since when it comes to buying a CD, most people wouldn't even think of buying second-hand. It's just not part of the culture in that market.
So whilst you do have a 'right' to sell stuff on once you're done with it, I think it's hard to deny, looking at the stats and the gaming market as a whole, that the huge rise of the trading in a game (probably bought used) at Gamestation towards another pre-owned game (and probably getting through a lot of games without ever buying a new one in many cases) is having a problem on the market, because the relative scale of it vastly eclipses the sectors you compared it to.
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Microsoft, Sony, reviewers & most importantly US, the customers.
Pretty sure half a game would get a pretty shit score on EG. The platform holders will not allow anyone to unfairly cripple their games in the way you are suggesting, it wouldn't make sense for them to do so. These games go through a pretty demanding certification process to ensure they are up to expected standards
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Would you say the same thing about the second-hand car market? What about the second-hand books market? Would you also categorize the car-makers and authors as "slaves" just because people buy second-hand cars and books? If not, then whey do you call just the game developers slaves?
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Edit: stop comparing it to second hand cars or TV's, those are actually used. There are no scratches on the content of a second hand game. The textures are just as good
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I'm going to wait-and-see on this but it won't encourage me to buy early, quite the opposite unless the game is stellar.
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it's not a good thing for the industry, no matter what people try to tell you. it's good for certain parts of the industry, certainly. it is definitely going to be very effective for certain major-AAA releases, but for the "2nd place" game/ non-EA/Activisions -- it's probably going to reduce their sales numbers.
a lot of people buy a £40 game on the premise that, they can get £20 of that back if they trade it in.. if it looks like you're only gonna be able to get £10 of that back if you trade it in (who's gonna want to buy it 2nd hand if you don't get as much stuff??) - is it still worth £40? not to everyone.
personally, i never trade anything in. i like to keep stuff.. i'll buy pre-owned. i'll buy 2nd hand CDs, too. and dvds. games are no different.
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Second hand book sales aren't as high as second hand game sales. And it doesn't cost $100m to produce a book.
As for cars, the cost of a used car three years old is around 40% that of a new car. Most people simply can't afford to buy new. No doubt the car manufacturers are well aware of this and price their new stuff accordingly to cover the second-hand sales. They also make an absolute killing on vastly overpriced services to offset these losses. Games, on the other hand, are usually available used for 95% of the new price. 99.9% of people buying a used game can afford to buy it new (hell, half the time it's cheaper new than the cheapest second-hand price if you look around), so it's less understandable. There's also the fact that if publishers try to offset losses made from used sales by increasing the prices of new products or releasing premium DLC, everyone whines about it. They can't really win.
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/Bioware fanboi, so I might not be entirely objective on the matter.
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Great analogy. Pissed off that I didn't think of it myself
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I don't know you, but I prefer if my money goes to the game developers, as opposed to every middle-man.
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Player A buys Assassin's Creed 2 on xbox 360 day 1 release for £39.99 from GAME... About £5 goes to game, £35 to Ubisoft, of which of that £5 goes to marketing, £5 to production and distribution and £10 to develop the game.
So, so far,
GAME Profit (GP) = £5
Publisher Profit (PP) = £15 (Non publisher made games split this with the developer).
Player A, sells game to GAME for £20 a week later; GP = -£15; PP = £15
Player B buys the game for £30; GP = £15; PP = £15 (So 1 second hand sale makes it about equal)
Player B sells the game for £17, GAME resells it to Player C for £25; GP = £23; PP = £15
Player C sells the game for £12, GAME resells it to Player D for £20; GP = £31; PP = £15
Player D sells the game for £8, GAME resells it to Player E for £15; GP = £38; PP = £15.....etc....
So in this example, the shop on the street makes over twice as much profit as the company that took the risk on funding the game development for 2 years, did the marketing, and made the game. All GAME did was have a shop on the high street and push 2nd hand sales down your throat...
I know where i'd rather my money went... But until someone makes 2nd hand sales non-viable, my only option is to go into GAME and do the same thing, as otherwise i'm ripping myself off...
I can't wait for Direct Download to cost 50% of the shop retail price, then i won't buy a single 2nd hand game again.
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Let's not forget the feee insurance companies like Citroen offer, those evil money grabbing bastards
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Your last comment makes my point for me. When I buy something it's mine to do with as I please. If i sell it on after a day for near full price why the heck does the developer deserve a cut of that money?
Here's the thing that makes this "we deserve a cut of second hand sales" thing the nonsense it is though.
A retailer buys the game from a publisher for the wholesale price. They then sell it on to you and I for a retail price and pocket the profit. Later on, after playing and hopefully completing the game, I sell the game back to a retailer for a trade-in price. The retailer then sells the game on to someone else for a reduced price. Nothing wrong so far except that EA, Activision etc. etc want a cut of that second, completely unrelated transaction between me and the retailer. Why?
They have done nothing to deserve a cut. The retailer is taking all the risk here by having to store and sell on the game. Activision and EA have already been paid right at the start of this whole process and most likely in advance!
Only pure ignorant greed would ever allow someone to think they can sell something and keep getting an income from it as long as it exists. It's like selling a table to a guy and getting paid every time that table changes hands. For all eternity. And you really can't see the nonsense in that!
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The most accurate analogy is a film DVD or music CD... So, the direct comparison here, is to walk into HMV to pick up the latest Lily Allen album (see, i'm down with the kids) and as you walk up to pay £9.99 for it the spotty youth behind the till says with his breaking voice..'We have that 2nd hand for £7.99'.
Why don't HMV do this? Because all the music companies would rip them a new one... Trading in your 2nd hand CD's or DVDs in a SEPERATE SHOP is widely seen as fine, because people who want new music and films don't go into that shop, they go to HMV.
GAME has such a stranglehold on the market, and the games publishers are so impotent to play hardball with them, that they'll keep getting ripped off. You'll never hear a games developer complain that someone sold/bought a 2nd game on EBay, or at a bootfair, but in a store that is on every high street, yes...
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See art sales and the law changes in that. Artists get a fee when their work is resold at auction. Why should Game make money several times selling on the same game? Are they a glorified pawn shop?
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That is nowhere near a good analogy.
By the time a DVD has been released, the studio have already made their money back on Cinema releases and selling to Sky Movies.
It is not even close
The fact is, likening the games industry to any other is impossible. It is a unique market that can't be based on or compared to anything else (as far as I can see)
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There is no way the retailer margin is that low. I can't see Game selling anything at a loss, and their standard staff discount is 30% (what their manager told my Mrs when she was working there in 2005 was roughly their margin after various costs).
I'd imagine it's more like £15-18 to Game and £22-25 to Ubisoft.
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I've bought enough second hand games on eBay to know that this issue isn't exclusive to cars
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The argument is pointless anyway - game makers could charge retailers a higher cost if they wanted to, but at the end of the day eveyone's charges are set at what will make them the most profit.
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Anyone who thinks games companies should just make games and sell them and not worry about this kind of thing, sadly doesnt understand the issues in the games industry.
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Unless you want to be the whiny berk who complains they're having to give money to 'the man'. Before putting on your favourite Linkin Park CD and wondering why she still isn't talking to you, even though you looked at her for like, a whole half hour today.
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That way gamers can still find a cheap copy which there is obviously demand for (although it will have less value than the retail without the disc, manual etc.), and the game maker still gets paid for every single sale?
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And then retailers refuse to sell the games, system or accessories. The retailers cannot be undercut or they will not play ball.
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CosmicGypsy: Sony and MS don't vet their games based on content so I don't think they'd really notice that a game doesn't offer much without the first buyer bonus content, in fact I doubt they'd even test without the content beyond "does it crash" and "can you earn 1000g/platinum trophy" type testing.
This shouldn't be looked at as EA trying to shaft customers but as a direct response to retailers refusing to give publishers a cut of the trade-in market. Retailers are ordering smaller first runs than they used to because they know a sizable number of them will come back through trade-ins, their second run is also smaller because they have pre-owned to sell and that continues down the line as more copies are traded in, eventually you reach the point where they simply stop ordering new copies and the publishers revenue stops. EA saw two choices before them, increase the wholesale price to cover the lost margin (MW2) or give incentives for buying new (ME2), I personally think they made the right decision.
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No, as they pay large sums for the right to rent the games for profit. Read the back of normal game boxes, there is a line that roughly says "you cannot legally rent this to people for cash". People get money.
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It affects consumers because it lowers the value of the game disc, meaning it's worth less if you try and sell it on; and meaning if you want all the content that first-hand buyers get, saving money by buying pre-owned is no longer a viable option.
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Awesome business strategy there.
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My facts trump your doubts
We seem to be on the same side in this argument anyway, but in your point against me you seem to have omitted the fact that I was responding to a statement which said "What's stopping the publisher make these "free bonus" grow into half the game?"
I stand by my point that neither MS nor Sony would allow it. The reason that this "Project 10 dollar" concept seems so well thought out and balanced is because EA know that if it isn't, MS & Sony will not approve it.
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The developers sign a deal with the publisher. A deal negotiated by the developers.
It is the publishers that are the greedy money grabbing cunts and it is the publishers who take the lions share of the wholesale price. What the hell gives EA the right to dictate what I do with my property? Also, for all those people who are fighting against the 'evil GAME and CEX' shops (because they obviously hate getting things cheaper), bear in mind that these business, built on a perfectly economic sub market that has existed in all creative industries since the dawn of time, employ people. People will lose their jobs so EA can earn a cut of the sale of YOUR property.
The large publishers are the cancer of the gaming industry. They stifle innovation and have absolutely no common sense and we suffer for it. If you want to support 'the industry' then stop bending over as consumers so Bobby Kotick and his ilk can by another yacht.
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Sort of. It only lowers the trade-in value at highstreet retailers, there is nothing stopping you from selling the game onto friends, or via other channels. Other channels that would potentially make you more money per sale anyway, but require slightly more effort. No one is trying to stop you from selling games on, the industry is trying to stop retailers pushing used sales ahead of new because it is currently detrimental to our health.
Buying second hand will still save you money, but you will lose certain bonuses, yes. So it's for the consumer to work out whether bonus content is worth the added cost from used to new, in the same way we are all able to decide whether or not to buy special editions, etc.
The incentive works by trying to provide the consumer with more content that lasts longer and more entertainment for the same cost. If you do not want that, by all means buy used, and no-one can or will stop you.
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@ignatiusjreilly: As you may have guessed, i work in the industry, and i'd LOVE it if the games i make were sold cheaper online than at retail... You know why they aren't? Because if we undercut retail then they refuse to put our new games in their store. I have been in management meetings where that has been quoted.
@ybfelix: Renting isn't great for the industry, but i believe publishers get a % of all rental revenue, so aren't technically being ripped off.
Personally i see a world where the base game is free (A demo if you will) and all of the extra content is paid for... Xbox Live is already doing that with the Episodic Fable 2 experiment. You pay for as much of the game as you like. Isn't that the fairest option of all?
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At the same time, when publishers are unable to afford to fund risky IP, and must instead rely on tried and tested formulas to stay afloat, how much innovation do you expect to find on store shelves?
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People are acting like games retailers are out to bring down the games industry, when in fact they are the ones that are bringing down the cost of gaming for the average person. They are doing it for profit, just like everyone else, but at least it is to the benefit of the consumer, not just shareholders.
Totally agree that the publishers are the biggest leeches, and to sit here arguing that they should get an additional slice of the pie when I've had enough of the game I gave them £40 for makes no sense to me, unless of course you work for a publisher yourself.
The real utopia here would not be a situation when publishers get more and more money for less and less work, but when publishers are no longer needed and my money goes straight into the pocket of the men and women that actually made the game.
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Who's to lose?
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So what side of the fence are you on when the specialist retailers are complaining that supermarkets are unfairly lowering prices to a level that they cannot compete?
Unfortunately, retailers have far too large a hold over the industry. You only see the "good" because you only see a very narrow slice of what is actually happening, but retailers arenot out to provide yo u better services and prices for anything other than their own benefit, and it's not as simple as you think.
Also, publishers are not trying to get money from you, or from your sale of the game. You can do what you choose and you will never be stopped from reselling. It's not about that, and never has been. It's about retailers pushing used sales over new, and the effect that those sales have. I don't understand why this is so hard to understand?
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This day has been and gone I'm afraid. What was the last genuinely original game to come out of a big studio? They are rarer and rarer. Things are so bad now that people praise EA for releasing 'innovative' and 'risky' games like Mirror's Edge and Dead Space.
The problem isn't that they can't afford to fund risky IP, it's that there is no reason for them too when they can guarantee profits by taking the obvious route. in fact, it's the less rich studios and publishers that are producing the genuinely risky IPs, because they are the ones who have a passion and love for gaming, whereas the publishers with the money just spend it on larger and more powerful vacuum cleaners to suck as much money out of the industry as they can. They then act like it's unfair people are buying old copies of FIFA 2009 when they have the new FIFA 2010 on the shelves for just £40!
edit: I can tell you I am on the side of the specialist retailers when it comes to supermarkets selling games below cost, but that is a whole other issue, mainly about monopolies and competition. And I'm quite happy to debate the issue, but not if you insinuate I'm an idiot who is too dumb to understand, and that must be the reason I disagree with you.
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maybe they'l take that bloated blimp newell's advice and make the end boss locked to a 100k unlock key you download with a one time use code.
and when you go to play the game a few years down the line and you're on a different console by then, hardware failure most likely reason, and you find they're no longer hosting that content so that's you stuffed and the game you paid money for has been rendered unfinishable.
it's the same with these drm systems that companies like ea and now ubisoft are using.
people who buy legitimate copies new and preowned are the ones who get punished.
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And who gets the money that comes from a digital download skipping disk production, package, storing and distribution parts of boxed game selling process?
Do you think it's developers? HA!
I might be wrong, but all that crying about retailers killing 'the industry' is nothing more than cry of publisher trying to squeeze as much cash as they can from people. Yeah. Cry me a river. I got a spare tissue I can give them.
One last thing. There's an old saying. Whether wolf beats the bear, or bear beats the wolf, rabbit always loses. Consumers were and always will be the rabbit, because it's them that's going to pay for the schemes of both publishers and retailers. And in reality, neither publishers or retailers give a damn about you, the gamer. You are just a wallet on legs. Supporting moves that will make you pay more for things you would like to buy, now and in the future, doesn't strike me as a wise move. Unless you are one of those lucky bastids that just inherited several million and don't have to lift the finger till your deathbed.
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Have you ever read EG when they post an article about digital Distribution or Games on demand? To answer your question, YES. MANY people have wondered and MANY people have detailed exactly why DD games are similar in price to boxed versions. I can't be bothered to explain, because many people far more intelligent than I have already done so numerous times on this site (pretty much any time MS releases a new GOD)
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Already discussed, because if the first parties put the games up at reduced prices then the retailers would no longer stock consoles, games, accessories, etc. Why do you think many refused to stock PSP Go?
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None of this should be publisher vs consumer, which you seem to be making out. It's about publisher vs retailer tactics, and the only way to combat this is to provide better content for the consumer in order for the consumer to want to give us their money. Why anyone is arguing about how hard done by the consumer will be as a result of this is baffling. Retailers cause far more issues, regarding pricing policies and DLC plans than you realise, because they refuse to stock items if they don't see enough profit in it, which actually prevents devs giving you stuff for free. It's incredibly annoying.
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As a matter of fact, I didn't read any explanation of that fact. And it's something I'm really keen to learn. And I hope the explanations are good. Unlike opinions of mr. ricotello and mr. kotick.
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But yes, we're on the same side here in that we want publishers to have a secure revenue rather than the game retailers having all of the cake and eating too.
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'@Silvervein:
Already discussed, because if the first parties put the games up at reduced prices then the retailers would no longer stock consoles, games, accessories, etc. Why do you think many refused to stock PSP Go? '
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Cake is fucking delicious
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I should say I'm not completely uninformed, but my experience comes from the other side of the divide - I spent quite a while working for a specialist games retailer, and not just working the tills. This particular retailer actually went out of business, partly due to the anti-competitive prices of supermarkets and partly due to the very low margins we made on games sales.
However I do accept that there is a complicated relationship between publishers and retailers that I am not privy to, but really it can be summed up by saying the publishers do everything they can to get the most money for their games, while the retailers do what they can to get them cheaply. That much is obvious.
I can't see why you would complain that retailers refuse to stock stuff if there is not enough profit in it - profit is the reason they run their businesses, so why would they want to sell your game otherwise? I'm sure you know publishers employ similar tactics, charging extortionately high prices unless retailers agree to stock thousands of units, and removing buy-back agreements that have been in place for many years.
Anyway, this whole twisted relationship wasn't really what I began with - my only problem with this story is publishers witholding content with the express purpose of making second-hand sales less attractive, along with the general tone in the comments that retailers are effectively stealing a large portion of money that should rightfully belong to the publisher.
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I suppose we should be greatfull that they're offering us content taken out of the main game (which day 1 content is) for no additional price... well for now atleast.
I'm far more concerned on how EA will practice this with online based games like bad company 2. If the contents free then fine.. if how ever they start micro-transactions with weapons then it's a bad step for online gaming.. offering unbalanced games. Ofcourse it will sadly sell and be a success for them..as you will always have those people who will crave that advantage
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What an interesting made up statistic. I could afford to buy new games, but for the price I'd pay I can buy two used games. Or a game and a night out.
The problem is one of pricing. Why don't books/comics/DVDs/CDs have this problem? Because a new unit of these items is 10-15 quid. A new comptuer game is 40-50. Yes, it's 30 if you shop around online, but then if you shop around for other stuff, they're cheaper too. At 2-3 times the price of other entertainment goods, of course second hand is going to be a big attraction.
They're creaming off the hardcore gamers, which is clever in the short term, but market limitting in the long term. Look at laserdisks, bought at exhorbitant pricing by the hardcore, but nowhere near as big a money spinner as cheaper, mass market DVDs.
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Of course, everyone is trying to get the best deal. I was actually referring more to this:
"People are acting like games retailers are out to bring down the games industry, when in fact they are the ones that are bringing down the cost of gaming for the average person. They are doing it for profit, just like everyone else, but at least it is to the benefit of the consumer, not just shareholders."
And this:
"Maybe it would be a good idea for publishers to offer a downloadable version of the game that is cheaper than what GAME charges for a second-hand copy.
That way gamers can still find a cheap copy which there is obviously demand for (although it will have less value than the retail without the disc, manual etc.), and the game maker still gets paid for every single sale?"
Retailers, unfortunately, hold the cards on this issue. Devs/Pubs can't offer more competitive prices because then retailers will refuse to stock boxed copies, which is still the biggest retail channel available. Even if the $10 code, that is the focus here, offers too much content, retailers will refuse to stock the item, as it will hamper their used sales...
So, in actual fact, retail is not doing anything for the benefit of the consumer, as you point out. They are actually doing everything available to them to block you from seeing the benefit, instead only allowing what they deem "good value" so as not to damage their own profits. I don't deny it's good business sense for them, but it is not a benefit to the consumer, and it is not the publisher that is trying to shaft you.
Obviously, these are only the biggest retail chains, as they are the only ones with the leverage, but they set the standard for the rest. It's a complicated mess that publishers are trying to get out of, because they can make more money with schemes such as this, that offer the consumer more value. And you know full well that they want that money
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It's my belief that pre-owned games actually exert downwards pressure on prices. If new games didn't have to compete with pre-owned prices, I think you'd see the price creep up.
Apart from its massive popularity, one of the reasons MW2 could get away with a high RRP was because the popularity of multi-player makes it hard to find a second-hand copy.
@ Derblington: that argument does make sense and I'm sure there's alot of truth to it, but I do have a couple of misgivings about it - firstly as a PC gamer I see the same high prices on digital downloads, even though retailers have long since given up on the PC and don't stock many of these games anyway. Secondly, why don't other industries have this problem? Why don't HMV refuse to stock CDs when they are available cheaper on iTunes, or Boardmans refuse to stock Dan Brown because his work is available as an eBook?
I guess that after all the nickel-and-diming I've seen publishers do in the last few years, i just need a little more convincing that publishers are desperate to give us cheaper prices but are being held back by the bricks and mortar retailers. At the end of the day, shops can't refuse to stock everybody's titles as they would soon go out of business, so maybe it just needs the publishers to stand together and show they have some balls. It can't be good for them to have GAME dictating their busines decisions anyway.
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PC games need to recoup the costs of development through to retail, and combat piracy, so I assume that prices are kept slightly higher than is ideal in order to try and achieve that. Piracy is an issue that I don't want to go into here, as it really is a messy argument from every angle.
Regards to CD and books though, while I know little of their respective industries, I assume that the retail channel for physical copies is still the largest, just like games, or at least highly competitive, and makes enough of a profit that it just makes good financial sense to keep bricks and mortar stores operational. Both of those products appeal to far larger audiences, and specifically less tech-savvy audiences that are either unaware or unable to invest in their digital counterparts. It's just a different market.
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Thing is, it's a completely theoretical argument anyway, as there is no possible way for developers or publishers to sell downloadable console games, so I can't see how it's an issue that crops up too often in board meetings.
I guess DLC is a good way for them to avoid the retailers' demands, but value for money hardly seems to be a priority for publishers there...
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Well prices have come down significantly in real terms in the last ten years, despite (I would say partly because of) the huge pre-owned market in that time. An the price of iPhone games suggests there is more room still.
However at this point I'm way off topic, and pretty much out of my depth, so I'll leave the economics of game prices to someone better informed than I
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Long live independent devs who have the balls to:
- sell games without DRM
- port to Linux
- experiment with buyers choosing their own price
And who then ultimately enjoy the fruits of their labor (as with World of Goo). I wish the corporations stop trying to do the exact opposite of what 2D Boy did for achieving the same target as them.
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Derblington - Honestly, I don't know what to say to you. You seem to be suggesting that publishers are desperate to knock down their prices but they can't because of those pesky, pesky retailers. Mmhmm. I'm sure they are. As for the 'extra' content for 'new' purchasers, please step away because the bullshit detector is running hot. There's nothing 'extra' about something being released at launch, theres simply something 'omitted' from my 40 quid purchase that I need to incur extra cost to receive. I was going to get BFBC2 after having an awesome time on the demo, but now I'm thinking that I'll give it a miss and give my money to a company that isn't out to punish me. Show me the numbers. Tell me how much ACTUAL REVENUE you lose through second hand gaming. Maybe then I'll consider it a little more than fatcat dollar chasing. 'Every person who buys our game second hand would have brought it brand new.' What typical gaming publisher thinking.
I hope they destroy the second hand market and then realise that actually, now they can't sell games anymore because noone can afford them.
All of this, ALL of it (including this new ridiculous policy of DLC) is because the games industry were so arrogant going into the recession. They went in with bold claims of being recession proof and then got royally fucked over and deservedly so. Being a gamer is a lot like being a football fan these days. You're treat like shit and when you complain you're accused of being disloyal. Fuck that.
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With Mass Effect 2 you are forced to go through a lengthy registering, code inputting, downloading, exiting game, restarting console process. It's like...thank you so very much for forcing me to go through all this crap. Even worse with all the pre-order bonus BS that's so popular these days.
If in the future all you have to do is input a code printed on a voucher, and it unlocks content included on the disc, then that's fine. Although, people buying used being forced to pay $15 to be able to pay for DLC....kind of questionable. Potentially lowers the value of used games. That's the only kind I can sell. I make less money so EA can make more.
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And yeah, this is probably guaranteed to gain me all sorts of negative shit, but if you can't see that this is purely and simply corporate bollocks spoon-fed to investors in order to gain more of the consumer's cold hard readies, you're living in la-la land. The fact that publishers aren't getting anything more from a title that someone has already paid for makes my heart bleed with purple piss...and don't give me that 'it threatens future IP and product development' garbage, because that is the biggest crock of all, wrapped up in a shiny veneer of emotional blackmail.
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Nothing to stop people buying used games and then for the extra content. They just need to be aware of this. I do hate how it forces people to get an EA account though, which I have had problems with in the past. Can be better than something tied to your PSN or Live account though as your relative/partner can use it on too on their account.
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If a publisher puts out a half game, with the other half being via a DLC code for first time buyers, then I think Eurogamer et al should divide the final score by half. As soon as they start getting metacritic scores of 45 rather than 90 they'll stop it.