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.

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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.

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Which group is more ethically challenged?:

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TechnogeekI'll be honest. I mostly just wanted an excuse to use that line.07/02/2015 - 1:13pm
Andrew EisenIt's long scrolled out of the Shout box so here's the article in question if anyone wants to read it: http://www.wired.com/2015/06/rape-scenes/07/02/2015 - 1:05pm
Andrew EisenOh come now, I don't believe Goth said the Wired author shouldn't be allowed to say what he claims she said.07/02/2015 - 1:04pm
TechnogeekWhich really makes it seem like Goth_Skunk's complaints are nothing more than...(•_•) (-•_•)>⌐■-■ (⌐■_■)...crocodile tears.07/02/2015 - 12:22pm
TechnogeekYou know, despite often as I've seen Gators conflate criticism and censorship, it's still kind of ridiculous to see "YOU SHOULDN'T BE ALLOWED TO SAY THAT" as a response to "you probably shouldn't say that unless you can do it well".07/02/2015 - 12:22pm
Andrew EisenI get the feeling Nintendo suspected the same thing would happen with the Wii U.07/02/2015 - 12:16pm
Andrew EisenMecha - Yeah, pretty much the only way you're getting away with a console that's a full technological generation behind is if it become's a full-blown pop-culture phenomenon like the Wii.07/02/2015 - 12:16pm
Infophile(cont'd) That's basically what the article is saying about rape. If you don't know enough about it to handle it well, it's a bad idea to do it, as you'll probably do it poorly.07/02/2015 - 12:06pm
Infophile@Goth, EZK: For example, I could very well try to write a book about the difficulties of living with Fibromyalgia. No one would stop me. However, since I don't know a thing about living with fibromyalgia, writing a book about it would be a very bad idea.07/02/2015 - 12:05pm
MechaCrashI just hope they realize that part of the problem with the Wii U was its relative lack of power. You can still make good games with what the Wii U has, but third parties won't want to deal with it when they can target the more popular PS4/XB1.07/02/2015 - 10:59am
Andrew EisenReplace "NX" with "QOL" and I'd buy it as potentially true.07/02/2015 - 10:51am
Andrew EisenNintendo to start manufacturing NX in October to target a July 2016 launch with 20 million consoles shipped the first year. Sure... http://www.digitimes.com/news/a20150702PD204.html07/02/2015 - 10:47am
james_fudgeLet's avoid name calling in the shoutbox07/02/2015 - 8:55am
E. Zachary KnightThe Daily WTF has a nice run down of some of the impact to software that the US Supreme Court ruling on gay marriage has. http://thedailywtf.com/articles/i-m-not-married-to-the-idea07/02/2015 - 7:45am
MechaCrashGee, how did people ever get the idea Gaters are morons who argue in bad faith? It's such a mystery.07/02/2015 - 7:03am
E. Zachary KnightGoth, again, no one is saying that we shouldn't be writig uncomfortable subject matter. What people are saying is that chances are you are going to write it poorly so it would be better to not have done it at all.07/02/2015 - 7:00am
Goth_Skunkdiscussed or portrayed in an expressive medium. Such an opinion only serves to stifle discussion. And as I said before, the only thing not worth talking about is what shouldn't be talked about.07/02/2015 - 6:50am
Goth_Skunk@Info: The same reason why I would entertain the notion that the Wired article writer could be right: Curiosity. Except in this case, I'm not curious at all. I'm not interested in hearing anyone's opinion on why uncomfortable subject matter shouldn't be07/02/2015 - 6:49am
IvresseI think the problem with the Batmobile is that they made it a core aspect of the game that you have to do continuously. If it was basically a couple of side games that were needed for secret stuff or a couple of times in the main game, it would be fine.07/02/2015 - 5:38am
Infophile@Goth: If you're not willing to entertain the idea you might be wrong, fine. That's your right. But why should anyone else entertain the idea that you might be right? If they go by the same logic, they already know you're wrong, so why listen to you?07/02/2015 - 3:53am
 

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