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.
"Literally, you will get most of your sales within three months of launch, which has created this really unhealthy extreme where you have to sell it really fast and then you have to do anything else to get money," he added, referring to DLC.
He also argues that used games are adding to the cost of making games.
"If developers and publishers don't see revenue from that, it's not a matter of, 'Hey, we're trying to increase the price of games to consumers, and we want more.' We're just trying to survive as an industry," he said.
"Looking towards next generation, people once again are saying we're going to have development costs that are two or three times what they were last generation ... I don't think as an industry we can afford $300 million budgets."
Dyack goes on to say that "If used games continue the way that they are, it's going to cannibalize - there's not going to be an industry."