Video Game Downloads Harming The Used Video Game Market?

from the well,-that's-a-flip dept

We've had a bunch of articles in the last couple years about video game execs complaining about the used video game market, saying that they deserve a cut of any such sale -- or that the used market should be banned altogether. This, of course, is short-sighted, as studies have shown that a healthy secondary market improves the primary market by adding value to the product (i.e., people may be more willing to buy the new product, knowing they'll be able to resell it later). And, of course, the market has a way of dealing with these things.

So, it's a bit amusing to now see sort of the flip side to that story (sent in by the amusingly named "Just Another Moron in a Hurry") -- with some warning that the rise in direct downloads of video games is threatening the used video game market, and that may be bad for consumers as well. Obviously, those games can't be resold (at least not easily), and thus there isn't a cheap price entry point for consumers, as there is with used packages games. Again, even though this is complaining from the other side, I'm not sure it's really that big of a deal either, as the market again should start to deal with this situation. Being able to offer games direct to consumers should lower video game production costs (no more packaging/shipping/logistics/hard goods/etc.) and, even they don't initially, eventually the prices should reflect that, as well.

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Nintendo Boss: Used Video Games Aren't Good For Consumers

from the oh-really? dept

The folks over at GamePolitics are highlighting the most ridiculous part of a VentureBeat interview of Reggie Fils-Aime, the president of Nintendo of America:

VB: Used games are coming up as a big issue again. Why?

RFA: More and more retailers are experimenting with the used game model. We don't believe used games are in the best interest of the consumer. We have products that consumers want to hold onto. They want to play all of the levels of a Zelda game and unlock all of the levels. A game like Personal Trainer Cooking has a long life. We believe used games aren't in the consumer's best interest.

VB: Because?

RFA: Describe another form of entertainment that has a vibrant used goods market. Used books have never taken off. You don't see businesses selling used music CDs or used DVDs. Why? The consumer likes having a brand-new experience and reliving it over and over again. If you create the right type of experience, that also happens in video games.

First off, it's rather stunning to claim that a vibrant used market isn't in the best interest of consumers. As studies have shown repeatedly, healthy second-hand markets actually help both consumers and original producers because it adds more value to the product. That's rather obvious once you think about it. If someone knows they can resell the product at a decent price later, then it both lowers the risk and increases the value of the original product. On top of that, the used market also helps better differentiate on pricing, again benefiting both customers and producers.

Second, it's quite odd to claim that there's no used book, used CD or used DVD market. A few years back we noted that the used book market had become a multibillion dollar industry, and you just need to look on, say, Amazon or eBay to see thriving sales of used books, CDs and DVDs. To claim that there's no such market either shows ignorance of the market or is an outright lie -- neither of which is a good thing.

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