Comments on: Used Games http://troygilbert.com/2008/01/used-games/ Gamedev 2.0 Thu, 04 Mar 2010 10:57:42 -0800 http://wordpress.org/?v=2.9 hourly 1 By: Troy http://troygilbert.com/2008/01/used-games/comment-page-1/#comment-23468 Troy Fri, 18 Dec 2009 02:23:01 +0000 http://troygilbert.com/2008/01/14/used-games/#comment-23468 It almost seems like a chicken-and-egg problem: consumers accept a $60 game because it retains about half of that value in the used market, so if the used market was restricted/removed a $60 game would be too expensive, thus the price would inevitably drop to balance demand.<br><br>But from the opposite direction, if game prices were actively reduced by the publishers it would minimize both the need for the consumer to justify the purchase with a secondary market and make the secondary market deliver less value: saving $20-$30 is worth shopping used, save $5 much less so. It almost seems like a chicken-and-egg problem: consumers accept a $60 game because it retains about half of that value in the used market, so if the used market was restricted/removed a $60 game would be too expensive, thus the price would inevitably drop to balance demand.

But from the opposite direction, if game prices were actively reduced by the publishers it would minimize both the need for the consumer to justify the purchase with a secondary market and make the secondary market deliver less value: saving $20-$30 is worth shopping used, save $5 much less so.

]]> By: Troy http://troygilbert.com/2008/01/used-games/comment-page-1/#comment-3508 Troy Wed, 13 Feb 2008 05:42:14 +0000 http://troygilbert.com/2008/01/14/used-games/#comment-3508 It almost seems like a chicken-and-egg problem: consumers accept a $60 game because it retains about half of that value in the used market, so if the used market was restricted/removed a $60 game would be too expensive, thus the price would inevitably drop to balance demand. But from the opposite direction, if game prices were actively reduced by the publishers it would minimize both the need for the consumer to justify the purchase with a secondary market and make the secondary market deliver less value: saving $20-$30 is worth shopping used, save $5 much less so. It almost seems like a chicken-and-egg problem: consumers accept a $60 game because it retains about half of that value in the used market, so if the used market was restricted/removed a $60 game would be too expensive, thus the price would inevitably drop to balance demand.

But from the opposite direction, if game prices were actively reduced by the publishers it would minimize both the need for the consumer to justify the purchase with a secondary market and make the secondary market deliver less value: saving $20-$30 is worth shopping used, save $5 much less so.

]]> By: Amit Patel http://troygilbert.com/2008/01/used-games/comment-page-1/#comment-3498 Amit Patel Tue, 12 Feb 2008 05:23:02 +0000 http://troygilbert.com/2008/01/14/used-games/#comment-3498 This has been studied in the college textbook industry. The ability to sell the used item increases the market price of the new item. Games can be sold for $60 because they can be resold; if they couldn't be resold, new games would be worth less, people would buy fewer of them, and the market price would drop. This has been studied in the college textbook industry. The ability to sell the used item increases the market price of the new item. Games can be sold for $60 because they can be resold; if they couldn’t be resold, new games would be worth less, people would buy fewer of them, and the market price would drop.

]]> By: Wearsch http://troygilbert.com/2008/01/used-games/comment-page-1/#comment-3312 Wearsch Tue, 15 Jan 2008 01:58:23 +0000 http://troygilbert.com/2008/01/14/used-games/#comment-3312 I think this is the best reasoned argument I have read explaining the content owners' desires to have their cake and eat it too. You've really hit the nail on the head here. I think this is the best reasoned argument I have read explaining the content owners’ desires to have their cake and eat it too. You’ve really hit the nail on the head here.

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