GameStop Says Gamers Won't Buy Consoles Without Used Games

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GameStop Says Gamers Won't Buy Consoles Without Used Games

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Will stopping used games lead to console downfall? GameStop says so.

In the wake of rumors that Sony and Microsoft are planning ways to block used games on their new consoles, GameStop is fighting back with its own "research" into the matter. Speaking at a recent technology conference, GameStop's Chief Financial Officer, Rob Lloyd, claimed that the company's own numbers show that most customers will refuse to buy a console incapable of playing used game.

"Consumers want the ability to play pre-owned games, they want portability in their games; they want to play physical games," Lloyd claims. "And to not have those things would be a substantial reason for them not to purchase a new console. I think it was 60% of customers who said they wouldn't buy a new console [if it doesn't support used games]."

While Lloyd's wording - specifically the "I think it was 60%" part - sounds a bit hazy, GameStop's past success in the used game business does suggest that there are plenty of people looking to save a few bucks by buying used.

Later, Lloyd also noted that the company is on the verge of shutting down 250 stores this year, but is also planning on opening as many as 70 new outlets.

Source: VG247

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GameStop Says Gamers Won't Buy Consoles Without Used Games

Translation: 'We won't make as much money without used games.'

They may have a point, but when a lot of their bottom line is gained from huge profit margins from used games, would you expect anything different?

He's right to an extent, but for me only because without the ability to play used games, retailers could charge even more for games due to a lack of competition from the used market and places like eBay. I only tend to buy used when picking up an older game and retailers are still at ridiculous prices.

Personally with all of these rumours I keep hearing I think it might soon be time for me to ditch consoles altogether and finally get games for PC only.

Daystar Clarion:

GameStop Says Gamers Won't Buy Consoles Without Used Games

Translation: 'We won't make as much money without used games.'

They may have a point, but when a lot of their bottom line is gained from huge profit margins from used games, would you expect anything different?

Indeed. It's a little like how developers keep using all these reasons for why they need to release Day One DLC etc. As if they are honestly going to just say "Hey, we want to squeeze as much cash outta y'all as possible."

So guys, how many of you would refuse to buy a console that didn't play used games?

DVS BSTrD:
So guys, how many of you would refuse to buy a console that didn't play used games?

To be perfectly honest, I probably wouldn't buy it.

Yeah the bottom line IS that they want to make money, but I don't see what the problem is with that. Valve wants to make money by treating its customers well but you don't see people jumping on them and saying "oh they were nice to you? They just want your money." Yes they do want your money, but they're getting your money in a way that's good for both parties. How is this a bad thing?

I dunno maybe it's me as a PC gamer but used games terrify me. I remember back in my PS1 days of buying a used game from gamestop and playing it only to find out halfway through there was a spot on the disk damaged enough that I couldn't get past it.

I can't imagine risking my cash on a product that may or may not be even viable. I dunno I just don't get the used game market love that console gamers have. I can understand wanting to trade/borrow games with friends but I can't understand wanting to buy used games it just seems like a big risk.

Honestly if I were a console gamer I'd be more concerned with how my digital content/day one dlc/online passes tie into the system. Is it tied into your online account or is it tied into the systems serial code/unique ID.

What happens if you sell your xbox, or Ps3 does all your digital content go with it? What if the console breaks what happens to all that content? What about the games you bought digitally any chance that it will work on the next generation consoles?

Part of why I'm not a console gamer these days is the uncertainty of all this. With my PC I know that my games will work from one machine to the next 99.9% of the time. Even the very oldest out of date games

Im not so sure, if a console prevents used games then all the publishers and des will flock to it, meaning it will have the largest line up of games on it

Totalbiscuit had a nice segment about it in his Content Patch news show and I agree with him for the most part

http://www.youtube.com/watch?v=NU6iA9IuF6A

Relevant part starts at 10:56

In short, one possible scenario goes like this: While gamers might not be into it initially, the publishers will be (no used games = more sales), so they'll flock to the console(s) that blocks used games, while abandoning those that allow them. As a result, all the major titles will be coming out for that console, forcing the players to switch to it or not get to play the major releases.

Now, that's just one possible scenario, but it's not an unlikely one. Also, while dedicated gamers fuss and protest and boycott and whatnot (as consumers should do when faced with bullshit), the general public is willing to accept quite a bit of punishment and still fork over the cash. Since the publishers follow the money, the market segment that is actually sufficiently aware as consumers to actually care might end up being too small to be truly relevant.

Basically, if they want to block used game sales, they'll most likely get away with it. Sucks.

The devil is ultimatly going to be in the details here.

Gamestop is right to an extent, I agree that given the option between a console that will play used games and one that will not gamers will gravitate heavily towards the one that will play the used games, and those consoles that do not play them will probably die.

HOWEVER if all hardware manufacturers support a ban on used games and show solidarity, and no consoles play them, while they cut off all support to the previous generation of consoles... that will be differant. People are going to want to still play games, there is a huge console subculture, and to many people this is simply how you game. Given the choice between gaming and not gaming, they will choose to game and just play far less games given the lack of a used market.

The problem of course though is that anyone within the industry wants to move units. Releasing a console that will play used games when the competition won't, is a huge business move that is going to allow you to make scads of money and penetrate the market far more deeply than the competition. Basically if some consoles support used games, and others do not, those that do not support used games might as well count themselves out of the next round of the console war before it even begins.

As a result I think it's a lot of smack talking because right now I don't think either the market is right for it, or that there is this kind of solidarity within the industry. At the end of the day those with brains probably don't like used games, but are kind of hoping all their competition will cut them out, so they can release the "gamer friendly" console and take over the market. A sort of game of chicken...

I might have missed it but right now Microsoft is the only ones that seem to have announced definate plans to go in this direction. I don't think I've heard anything about Sony doing it, even if they have QQed as much about used games as anyone. I'm not sure about "The Wii U" since I haven't followed it that much, so can't tell you if it will play used games or not.

I'll also say that Sony is pretty much a company full of corperate vermin of the worst sort. I wouldn't put it past them to release their system with used game compadibility, but set up a way where they can later remove it. Waiting to sell a bunch of units and then simply remove this feature once they are insinuated heavily into the market, effectively getting the best of both worlds. Very similar to what they did by removing capabilities from the PS-3 previously, which lead to the PSN attacks. At the end of the day, I don't trust Sony to actually hold up their end of the deal, they might seem to give you what they promise to begin with, but have changed the terms after the fact before and taken back what they sold without recourse when it has become inconveinent for them before.... sorry if that comes accross strong, but yeah... I haven't forgotten about the whole OS situation with the PS-3, chasing around Geohotz, or any of that stuff, it might be yesterday's news, but it still happened and did a lot to form my opinion of the company and it's policies when it comes to consoles... you just can't trust them.

The bottom line is that we'll see what happens, we might not see how this plays out fully until a year or two into the next generation, given the abillity and willingness of console manufacturers to change things. If the new consoles are always online, and require hard drive installations and verification, that opens up all kinds of options for them to give you something, and then take it back later.

First thing: I'm going to wonder out loud if Gamestop Kids is what bled those 250 stores dry. I went into a GS-Kids out of sheer, morbid curiosity and it looked like nobody had ever been in there apart from staff. It was really kind of sad.

I agree with Gamestop though for once. If Microsoft and Sony release new consoles that reject used games then I sure as Hell won't be buying them. A part of me is kind of hoping this happens though but not because I want Gamestop to fail: I want Gamestop to finally have some competition. They won't be able to sustain their stores if new consoles block used games and stores like Play n Trade can finally rise up to compete with Gamestop for better or worse. I may say I don't support Gamestop because they're a monopoly and while that's mostly true, all I really want is a game retailer that repairs discs on site and, sells me Super Nintendo games. If Gamestop of 2014/2015 can't sell Xbox 720 and, PS4 games used then maybe it'll go back to selling GBA and PSX games.

GameStop's past success in the used game business does suggest that there are plenty of people looking to save a few bucks by buying used.

a few bucks? are you high? you can save over 50% buying used. New games sell for only $50~60 usually, but used can go as low as $10 if given enough time or the demand for the game as fallen. Seriously there is no rush to buy day 1 games. i have never bought a game on day 1, (well i have, but not in a long long time)

The game Hunted: The Demon's forge was 60 brand new, it looked interesting to me but i held off. About 5 months later it was already 30 used and about 45 new if you could still find a new copy. Half the damn price in less than half a year. That's really not that much time and it saves a ton of money.

I actually think mainstream gamers are a bit on the nutty side, anyone willing to buy 60 for video games is out of their mind. Used games is probably the only thing keeping games at a reasonable price and allowing them to become as popular as they are.

edit: also i'm pretty sure i just read an article stating that a CEO at Sony has already said that they are not going to be blocking used games. not sure about Microsoft but i can almost guarantee they aren't going to do that. whoever is spreading these bullshit rumors is just looking to stir shit up, like usual.

erttheking:

DVS BSTrD:
So guys, how many of you would refuse to buy a console that didn't play used games?

To be perfectly honest, I probably wouldn't.

I wouldn't either, I'm painstakingly picky when I'm buying a game and usually I buy brand new games, I only buy used games when I can't find brand new stuff, or if I'm not so sure about the game and the used version way cheaper...
It would be a dream come true, for me, if every game was made available digitally as soon as the physical reaches retail.
Last but not least, I would really enjoy backwards compatibility, but let's be honest, all consoles right now "have" it, but it doesn't work properly, so yeah, I'd like to have it but i haven't used it, so to hell with it as well.
Basically, if I like the console I'll buy it.

Milanezi:

erttheking:

DVS BSTrD:
So guys, how many of you would refuse to buy a console that didn't play used games?

To be perfectly honest, I probably wouldn't.

I wouldn't either, I'm painstakingly picky when I'm buying a game and usually I buy brand new games, I only buy used games when I can't find brand new stuff, or if I'm not so sure about the game and the used version way cheaper...
It would be a dream come true, for me, if every game was made available digitally as soon as the physical reaches retail.
Last but not least, I would really enjoy backwards compatibility, but let's be honest, all consoles right now "have" it, but it doesn't work properly, so yeah, I'd like to have it but i haven't used it, so to hell with it as well.
Basically, if I like the console I'll buy it.

Wait...oh damn it I fucked it up, I mean I wouldn't buy the console if I couldn't play used games on it.

This was pretty much my first thought when I started hearing about next generation consoles locking games into one console. I honestly rarely buy console games brand new at release... Admittedly I am a PC player mostly, so when I buy new games at release, I buy them for PC. My consoles are mostly to play games that are exclusive to that console, and to play with friends. So most of the games I buy for console are either used, or bought well after release when the price drops a lot.

Another thing that worries me about locking a game to a certain console is how will that work when your console dies? I haven't heard anything about that, but having been through several xbox 360s already... I would be very upset if my console dying would mean I had to rebuy all of the game disks I own as well, because they are now only useful as coasters...

erttheking:

Milanezi:

erttheking:

To be perfectly honest, I probably wouldn't.

I wouldn't either, I'm painstakingly picky when I'm buying a game and usually I buy brand new games, I only buy used games when I can't find brand new stuff, or if I'm not so sure about the game and the used version way cheaper...
It would be a dream come true, for me, if every game was made available digitally as soon as the physical reaches retail.
Last but not least, I would really enjoy backwards compatibility, but let's be honest, all consoles right now "have" it, but it doesn't work properly, so yeah, I'd like to have it but i haven't used it, so to hell with it as well.
Basically, if I like the console I'll buy it.

Wait...oh damn it I fucked it up, I mean I wouldn't buy the console if I couldn't play used games on it.

Too late now you're gonna have to change your mind in order to comply with what you wrote before and agree with ME lol

I don't play used games, I may be in the minority but I don't have that many games which belong in the mainstream popular genres that I care for, I don't play FPSs or sports games or racing which come out every year for a full retail price so I guess that's one area in which I escape lots of expenses. I mainly play games like fighters or RPGs which have a lot of replayability so you may just buy one game but out of that one game you derive playtime equal to that of 20 other games of different genres. It is indeed worth the full price and I enjoy supporting the developers so that I'll get more of these games that I love.

I think if you'd be willing to miss out on those really awesome must have games for any one system, ones you'd buy new, simply because of being unable to buy games which you don't care about enough to buy them new in lower pre-owned price, you likely are not that much into the games to begin with so I am fine with you not getting the next console. It is likely we never played the same games to begin with (these types seldom play 2D fighters and Jrpgs - the main types of games I play) so it's not like it's gonna affect me. What it WILL affect is the popularity of genres of games which I wish were not quite so popular...so on that leg, I am fine with it.

Naturally the kind of people who shop at a gamestop wont buy a new console if it means they cant buy games for 5 dollars less than the new copy costs.

I would buy the new console if it didnt allow used games, as none of the games in my collection are used anyway.

While I completely agree with Gamestop (despite their whole business being based off used), being able to by used this next generation isn't going to compel me to go into one of their Godforsaken stores.

It's not even not giving any money when you try to sell used to them. I couldn't care less about that. But when you refuse to sell a game to me on day 1 because I don't give you 5 bucks 2 months in advance and I just have to go across the street to get the game... I'm going to continue to go across the street. You've lost me completely.

Besides, Gamestop's model will be completely useless in 5-10 years. They're Blockbuster video, and will follow the same route

Jandau:
Totalbiscuit had a nice segment about it in his Content Patch news show and I agree with him for the most part

http://www.youtube.com/watch?v=NU6iA9IuF6A

Relevant part starts at 10:56

In short, one possible scenario goes like this: While gamers might not be into it initially, the publishers will be (no used games = more sales), so they'll flock to the console(s) that blocks used games, while abandoning those that allow them. As a result, all the major titles will be coming out for that console, forcing the players to switch to it or not get to play the major releases.

Now, that's just one possible scenario, but it's not an unlikely one. Also, while dedicated gamers fuss and protest and boycott and whatnot (as consumers should do when faced with bullshit), the general public is willing to accept quite a bit of punishment and still fork over the cash. Since the publishers follow the money, the market segment that is actually sufficiently aware as consumers to actually care might end up being too small to be truly relevant.

Basically, if they want to block used game sales, they'll most likely get away with it. Sucks.

It would also be a good time for PC services like Steam and GOG to start pushing hard to fill the vacuum, especially if they market things like Big Picture, ease of installation, and other things current console owners "prefer" over PC gaming.

Part of me hopes that these rumors of locking out used games worries me. Games are getting so high in price that it's almost not worth it half the time. Plus, what if your console breaks? Will they allow you to transfer the games you purchased, often at ludicrous prices, to transfer over to a newer console? As much as developers don't like used games for many of us that is the only way to play the games as it gets harder and harder to purchase them. Heck if these rumors are true than the Wii U looks like it'll be the only console I'll be getting for the 8th generation. I'll continue to play my PS3, PS2, Wii, and Gamecube games. I've been a console gamer all my life and the news like this always makes me sad because soon developers will probably raise the game prices to like $70 or $80 (even worse for Australians) which in the end is never worth the costs, even if it one of the best games ever.
In short if these rumors are true than I'll go to PC gaming mainly and play the Wii U a lot. Developers, this will really shoot you in the foot.

I don't mind if the games are used or new, I just want to see the prices moving. If a console does block used games, I'd better see an eventual decrease in price of new (old) games, and some way to prevent price gouging.

If the price of the games doesn't go down, I won't be buying that console. That will probably also be the day I purchase a higher end PC, or quit playing games all together.

60% sounds way too high, but they are fundamentally correct. Consoles will loose a HUGE market share if they don't support used games. Piracy will likely go up too.

After reading the article again, I will bet they only interviewed people coming into gamestop and who were buying used games at the counter as to if they would buy a console that doesnt allow used games.

I certainly wouldn't buy a console that didn't support used games.

If there wasn't any consoles that did I'd just go over to PC, where although I'm forced to buy games new I can get them at a much lower price.

Milanezi:

erttheking:

Milanezi:

I wouldn't either, I'm painstakingly picky when I'm buying a game and usually I buy brand new games, I only buy used games when I can't find brand new stuff, or if I'm not so sure about the game and the used version way cheaper...
It would be a dream come true, for me, if every game was made available digitally as soon as the physical reaches retail.
Last but not least, I would really enjoy backwards compatibility, but let's be honest, all consoles right now "have" it, but it doesn't work properly, so yeah, I'd like to have it but i haven't used it, so to hell with it as well.
Basically, if I like the console I'll buy it.

Wait...oh damn it I fucked it up, I mean I wouldn't buy the console if I couldn't play used games on it.

Too late now you're gonna have to change your mind in order to comply with what you wrote before and agree with ME lol

There's another factor that doesn't seem to get much attention: A lot of people who do buy games on the day of release do so with the intention of trading it in shortly thereafter. I've done this myself on a few occasions (no desire to hang on to Dead Island). If you didn't enjoy a game, aren't going to play it again, or just need the cash, trades-ins are a convenient way to save money. If that avenue of savings is eliminated, many gamers are going to be a lot more judicious with their game purchases (this would be true of a large number of gamers I know personally).

I have one it's called my PC.

I play it more than any other of my 'consoles'. Funny that.

DVS BSTrD:
So guys, how many of you would refuse to buy a console that didn't play used games?

If I don't have a physical copy, used or not, and if the console requires CONSTANT internet access in order to turn the damn thing on, I might as well just give up gaming all together.

Self serving for Gamestop, but frankly I think they're right. I'm sure not going to pay 60 quid for whats offered, unless whats offered changes substantially. Every form of digital media has always cried out against the second hand market, even though time and again it's shown to be good both for the market and for the consumer. Bands used to protest the sale of records for gods sakes.

I made the move to PC a while ago but reading this has told me I am definitely not gonna go back to consoles. Most of my games were bought used for my Xbox because I'm on a very, very tight budget. This is the same reason why I rarely buy games on Steam outside of sales. As much as I would like to play games on release day, I rarely do. I'd rather wait for people to start trading them in and buy them at a lower price.

There's also the fact that this would then stop people being able to trade in their games once they're well and truly finished with them. While I do understand that from a business perspective, used games are painful but it's somewhat unfair.

Plus, console games are priced higher than PC anyway, plus there's the fact that PC drops faster (Steam sales). If I'm gonna be restricted by my platform to only being able to buy games "new", I think I'll go for the one that makes "new" a much cheaper and more viable option for me...

I buy new copies exclusively. It doesn't feel right in my heart of hearts to own a game that once belonged to someone else.

So I would buy a console that didn't allow used games.

I have zero interest in a console that won't play used games. I do a lot of lending to my friends, and the idea that I couldn't let them give my copy a go to see if they want to pay for the game is very unappealing.

Also, I'm very much into retro gaming- I just got a "new" Atari 2600, for example- so being able to buy secondhand games years after the system has become obsolete. Banning used games puts a distinct 'shelf life' on the system. I'm just not OK with it.

synobal:
I can't imagine risking my cash on a product that may or may not be even viable. I dunno I just don't get the used game market love that console gamers have. I can understand wanting to trade/borrow games with friends but I can't understand wanting to buy used games it just seems like a big risk.

Fair enough. I've bought enough used games that it's just kind of instinct to tell if a game is in good shape, needs to be cleaned/reapaired, or should probably be ingored. I've only encountered 2 games since the PS1 era that couldn't be restored to full working order- and one of those was brand new when I bought it.

Basically, it's not really that risky if you keep some scratch-fixer around, and the more you do it the easier it is.

I'm really not crazy about not being able to buy used games, especially once original copies go out of print. There are some people that are pretty into game rentals, and I don't think that would be possible with the rumored model. Also, how would the handle blocking used games? Would the game be permanently tied to the one console you own or your one PSN/Live account? How would that work if you wanted to bring a game to a friend's house? I don't really see a way of successfully blocking used games without severely limiting what the consumer can do with the product. I feel like even if I bought a console that blocked used games, I wouldn't be able to build a game library at all with my way of purchasing games late, and the restrictions definitely don't seem like they would be worth it for me.

Totally hypothetical, but what would you folks think about this: Consoles without used game support (it would be tied to your console and/or your gamer profile) but new games cost $40 on launch. Thoughts?

Like GAME in the UK the removal of preowned from the market will destroy whats left of highstreet game retailers. But the point Gamestop makes has some sound logic behind it, consider people's spending on games within a month is off set by trading in old games take that out of the market and you loose a % on new sales, how much? I don't know but surely thats something.

On the note of will people buy the new consoles without pre-owned? some will, i know a few people who never trade in. But on the other hand it will alienate those who religiously trade in and buy a lot of pre-owned as they may not want to trust new released by say demos(e.g alien cloinal marines) or see crappy reviews and not want to waste 40/$60 on it at full price but may want to try it out(and maybe enjoy and buy online passes/dlc). Its a wide bredth of risk for everyone to go fully digital.

Final note is we still use real cash/coin in the world due to a distrust of total digital(although without a gold standard its as good as nothing) same goes for games. The big componies best tred crafully or otherwise loose a lot as people stick with those who offer hard copies of games. Or a wild idea of people maybe just going over to pc with steam(or the like) as they know there games from there will almost always work on any pc they get and not just vanish into the aether when a new console is released and they shut down the update/download servers.

No used games? Why even have a disk? Fine, sell them at 30 bucks brand new on launch day. Otherwise, where is the resale value? You buy it and it's suddenly only worth sentimental value. If they block used games, I will have to switch to PC gaming. I don't want to do that. I like to lay down when I play :( Not to mention this would probably kill the privately owned rental store around the corner... Also, what happens if I get in a bind financially? I won't be able to sell them to ANYONE

IMO there is also no cause for digital games to be full retail price either, no disk, no paper, no box, no distribution cost.

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