Nintendo of America president Reggie Fils-Aime said that if game developers and publishers are worried about used games cannibalizing new games then they should simply make better games. He also said that it is important to support the used games market because the sale of a used game usually goes towards the purchase of a new game.
The best way for console makers to deal with the used games market is to ensure their games are so good that people don't want to trade them in, he told Polygon. But supporting used games is also important, he added.
"We have been very clear, we understand that used games are a way for some consumers to monetize their games," Fils-Aime told Polygon. "They will buy a game, play it, bring it back to their retailer to get credit for their next purchase. Certainly, that impacts games that are annualized and candidly also impacts games that are maybe undifferentiated much more than [it] impacts Nintendo content."
Fils-Aime says that Nintendo is impacted less by the used games market because players don't generally sell the games that Nintendo makes – they keep playing them.
"The consumer wants to keep playing Mario Kart. The consumer want to keep playing New Super Mario Bros. They want to keep playing Pikmin. So we see that the trade-in frequency on Nintendo content is much less than the industry average – much, much less," Fils-Aime said. "So for us, we have been able to step back and say that we are not taking any technological means to impact trade-in and we are confident that if we build great content, then the consumer will not want to trade in our games."
You can read the rest of Fils-Aime's comments on Polygon. He answers questions about Nintendo's plans related to digital distribution versus retail distribution of games and a whole lot more.