The Future of Used Games

This week rumors swirled around the “Xbox 720“. One of the biggest surprises was the speculation that the new system would deny users the ability to run used games. The market for used games, which has become a large thorn on the sides of game publishers all over, will eventually fade away. The bigger question is when.

The used game market is as old as the video game industry itself. With games costing a hefty dollar, no matter the decade, gamers have relied on the second hand game market to widen their reach of gameplay. The real game changer, however, was the eventually dominance of GameStop. Though the primary retail destination for console games, GameStop sees even greater profit margins from used games. Not all that different from other second hand markets, GameStop buys low and sells high from gamers as they finish (or return) games. Over the years, GameStop has continued to incentivize consumers to trade in their games, with extra bonuses, deals, and loyalty programs. While others have tried, GameStop remains relatively unchallenged in the market.

The biggest problem with this market is that it ultimately hurts the game publishers and, in turn, game developers. A game’s success is ultimately determined by its sales. With used games, any additional sales and profits go to the third party (most likely GameStop) and not the publisher. Complicating things further is GameStop’s position as the dominant retailer for gaming companies; it prevents these companies from taking drastic action against GameStop. As Sony was pursuing digital downloads only options for the PlayStation Portable, GameStop made clear threats of dropping retail support for the fledgling system. It’s one reason why digital distribution in video games have not developed to the extent many have expected.

Many publishers have found other ways of addressing the used games. One common tactic is the development of DLC, digital downloaded content. Oftentimes DLC will provide extra maps, levels, or characters in hopes of extending the life of the game with the consumer, thus holding it off from being sold. It’s a new direction Epic Games now swears by. Another tactic is the development of online passes. Each game is shipped with a unique code for multiplayer function and support. With the code attached to that one account, the next owner of the game will find themselves unable to go online unless they pay to secure a new code. Also, with the growth of XBLA, PSN, and WiiWare, the market continues to grow in the digital space, forcing retailers like GameStop to rethink their long term strategy.

The PC gaming market has already long since moved past this issue. For years, publishers have implemented unique codes and DRM to restrict users from buying games second hand. Furthermore, digital services such as Steam have weened consumers away from physical copies and pushed users to accept the digital copies as the default.

So while console gamers may revolt at this prospect of used game lockouts, this shift is only leading to the inevitable. Ultimately, this shouldn’t be seen so much as a loss for consumers. The used game market have ravaged the profit margins of smaller publishers and developers; reshifting the money flow away from retailers and back to the game makers will help to continue the library and variety of games so many of us have come to enjoy.

Best of CES 2012

CES once again  kicked off the year showcasing some of the hottest tech and gadgets, from TVs and tablets to cameras and printers. Oftentimes groundbreaking tech will make its way down the halls of the Las Vegas Convention Center, but this year’s CES seemed to focus more on product evolution, as opposed to revolution. Most of the devices and technology shown this year seemed to be updated or improved iterations of what was shown last year. Of course, that didn’t stop things from wowing and impression attendees. So what are some of the highlights from this year? Here’s some of the best from this year’s CES.

Televisions

It was all about slim. In fact, LG boasted that their new OLED TVs were slimmer than smartphones! This year marked a variety of televisions, from 3DTVs to OLED displays to smart TVs with embedded apps and programs.

LG's Booth Entrance

LG 3D OLED TV

LG Ultraslim TVs

Panasonic Booth

Smartphones

While Android phones of all shapes and sizes spanned across halls, the Nokia Numia 900 stole the show, running Windows Phone 7.

Nokia Lumia 900

Tablets & Laptops

There seems to be a convergence between tablets and laptops. As tablets become more powerful with the ability to offer more productivity, laptops continue to shed pounds creating the new “ultrabook” category to win back consumers from their slimmer cousins. Windows 8 showcased a promising UI that would span across tablet, laptop and hybrid devices.

HP Envy

All about ultrabooks

ASUS Transformer Prime

Windows 8

Waterproofing

Next-Gen Controls

With products like Kinect and Siri out in the market, many companies looked to build upon gesture and voice-based controls.

Kinect-like Controls

Magnetic Field-based Motion Controls

Motion Control Gaming

3D Modeling

Brain Wave TV

Home Appliances

CES 2012 continued the promise the idea of connected and smart devices including refrigerators that would know when food is about to expire, washing machines that will tweet when clothing is dry, and smarter Roomba-like vacuums.

Smart Fridge

Food Expiry

Smart Washer Dryers

Instantly chill beverages within minutes

Double doors to conserve energy use

Automotive

CES is also a big destination for those in the automotive industry. HUD displays were the hot item, overlaying useful information such as GPS, points of interest and personal messages could be highlighted while behind the wheel.

Ford

Ford Sync

Ford Interior

KIA

Mercedes Benz

Mercedes Smart Dashboard

Points of Interest

H.U.D. Overlay

Other Highlights

Other highlights at CES included Maker Bot’s Replicator, which allows users to replicate items in its entirety.

Replicating a chess piece

Finished Replica

One way to showcase cameras...