Used Game Trade is Good for Video Game Biz, Says Industry Watcher

While some game industry types and even the occasional game journalist criticize game trade-ins as harmful to the industry, a market researcher says it’s actually a good thing.

As reported by Game Daily, Eric Villain of research firm OTX made his remarks at the MI6 conference in San Francisco this week. From Game Daily’s account of Villain’s talk:

We spoke to 2,000 gamers from March 14th to 17th. Is it good or is it bad? For now, it’s actually a good thing. And actually fuels new game sales. Used games are only a fraction of the market. 

Gamestop has a phenomenal share of market – again, not a big surprise. We felt really good that a conservative estimate [of the used game market] is about 1.3 billion dollars in 2007.

Every game has different [trade-in] curve… Sellers are guys. The buyers are more evenly split, fifty-fifty… What’s driving the retail market is people who are buying action-shooter games – RPGs as well… What we also expect is growth in the market for 2008. A lot more than a year ago. In the midst of an economic downturn, I expect more buyers.

According to Game Daily, OTX noted that used game sales create additional opportunites for in-game advertising, since multiple owners may use a single copy of a game. The practice also increases the value of some game brands.

Nearly two-thirds of gamers surveyed told OTX that they purchase both new and used games.

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