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.





























































