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

===============

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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Sleaker@EZK - I think some people are concerned beacuse it's a predatory technique targetted toward younger people that don't understand on top of offering the worst interest rates of any retailer around.07/30/2014 - 11:33am
MaskedPixelantehttp://www.joystiq.com/2014/07/30/europe-gets-long-detained-shin-megami-tensei-4-at-cut-price/ "Sorry you had to wait a year for SMT4, would a price cut make it sting less?"07/30/2014 - 10:29am
NeenekoI would hope not. Though it is not unheard of for store specific cards to be pretty good.07/30/2014 - 8:17am
E. Zachary KnightDoes anyone, or at least any intelligent person, expect a retail branded credit card to be anything close to resembling a "good deal" on interest rates?07/30/2014 - 7:13am
SleakerGamestop articles popping up everywhere about their ludicrous new Credit card offerings at a whopping pre-approval for 26.9% APR07/29/2014 - 10:19pm
Matthew Wilsonhttp://arstechnica.com/tech-policy/2014/07/podcasting-patent-troll-we-tried-to-drop-lawsuit-against-adam-carolla/ the podcasting patent troll scum is trying to turn tail and run.07/29/2014 - 9:50pm
MaskedPixelanteOf course it's improved. At launch, Origin was scanning your entire hard drive, but now it's just scanning your browsing history. If that's not an improvement, I dunno what is!07/29/2014 - 8:59pm
Papa Midnighthttp://www.escapistmagazine.com/articles/view/video-games/columns/experienced-points/12029-Has-EAs-Origin-Service-Improved-Any-Over-the-Last-Two-Years07/29/2014 - 8:25pm
Sora-ChanSo it's just a matter of having better emulation software. If it can be done with a 3DS game, with all the memory and what not it takes up, it can be done with a GBA title through emulation.07/29/2014 - 7:30pm
Sora-ChanOther VC titles for the NES and Gameboy had the same setup where you couldn't access the homescreen without quitting out of the game til a later update when those games were released for the public outside of the founder program.07/29/2014 - 7:28pm
Sora-Chanthe 3DS can, and does, run GBA games, as seen by the founder gifts, which included a number of GBA titles. As for running GBA games and still having access to the home screen, I beleive it's more of the game emulation software needs to be updated.07/29/2014 - 7:27pm
Matthew Wilsonthe 3ds already swaps os's with the original ds. plus I dont think people expect miverse interaction when playing a gba game.07/29/2014 - 6:06pm
MaskedPixelanteBut that's not the issue, the 3DS is perfectly capable of emulating GBA games. The problem is that it doesn't have enough available system resources to run it alongside the 3DS OS, and thus it doesn't have access to stuff like Miiverse and save states.07/29/2014 - 5:45pm
Matthew WilsonI am well aware that it requires more power, but if a GBA emulator could run well on a original psp, than it should work on a 3ds.07/29/2014 - 5:36pm
ZenThe reason the SNES could run Gameboy, or the Gamecube could run GBA was because their adapters included all of the necessary hardware to do it in the respective add-ons. The systems were just conduits for control inputs and video/sound/power.07/29/2014 - 4:51pm
ZenMatthew: Emulation takes more power than people realize to run a game properly. You can make something run on less, but Nintendo...as slow as they are at releasing them..makes them run as close to 100% as possible. Each game has its own emulator for it.07/29/2014 - 4:47pm
Matthew Wilsonkind of hard to believe since the 3ds is atleast as powerful as the gamecube hardware wise.07/29/2014 - 4:27pm
MaskedPixelanteYes, the 3DS has enough power to run 16-bit emulators, but not at the same time it's running the 3DS systems themselves. You could run the games, but you wouldn't get save states or Miiverse.07/29/2014 - 4:04pm
InfophileRunning GBA on 3DS shouldn't be hard. The DS had flashcarts sold for it that added just enough power to emulate GBA and SNES games, so the 3DS should have more than enough natively.07/29/2014 - 3:37pm
MaskedPixelanteIt's a bunch of people whining about boycotting/pirating Trails in the Sky FC because XSEED didn't license the Japanese dub track, which consists of about 10 lines per character.07/29/2014 - 11:27am
 

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