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Want to Solve the Used Game Dilemma? Here’s How to Do It.

by Deejay Knight: at November 12th, 2008, 4:29 am

Awesome, Editorials, How-To, PSN

The Solution

Anyone who owns anything knows that items are only as valuable as the price people are willing to pay for them. At $60 a pop, games are an expensive hobby to partake. So expensive, in fact, that the $5 discount that Gamestop extends on new titles ($10 if you have an Edge card) is enough to make cost conscious gamers overlook brand new copies of games. Of course there are hardcore gamers that overlook these used titles because they would like to support the developers, but many aren’t aware – and frankly don’t care either way. They want to save money, and who can blame them?

Keeping the developer in mind, there are a couple of ways to correct what these developers see as a major problem – erosion of their income by an outside force as large as Gamestop.

Suggestion One

One sugestion is to follow Epic Games’ lead. Mike Capps’ company has taken a simple, but effective attack on used game sales with Gears of Warwar reviewswar reviews 2. With each copy of Gears of War 2 comes a token which allows you to download a Map Pack containing the best multiplayer maps from the original Gears of War. This attacks used sales on two levels:

  1. It gives the maps to the gamers who bought the title new, subtly taunting users who bought the game used with maps they don’t own each time they go online.
  2. If properly priced, those gamers will then download the maps, giving Epic a bit of secondary income.

Simple and effective.

There’s also another way to lower used game sales that would only take one major developer or publisher to lead the charge: Lower the cost of new games. Not all at once, mind you (although that would be a good alternative), but hear me out.

I’m suggesting a simple, but fair, tiered pricing system.

Suggestion Two

Launch your game at $60, that’s all fine and good. After launch, however, keep an eye on sales of your title. Once the sales are below a comfortable threshold, let’s say 10,000 units per month, lower the MSRP by $5 – $10. The lower price would be coupled with press releases and advertisements in related magazines/websites announcing the lower price. This has two positive effects:

  1. Sales of the new copies are likely to increase due to the lower cost.
  2. Gamestop is then forced to lower it’s used prices, cutting into it’s income stream.

Keeping an eye on sales and adjusting prices accordingly would keep used game retailers on their toes, as each title would have different sales points. Also, let’s face it, every title isn’t a AAA title like Call of Duty 4 or Gears of War 2. Unknown titles or franchises could be lowered to $45 – $50 on launch, with $55 – $60 limited editions to spur sales and get the title in more gamers’ hands. then if they become profitable, the next title in the series – with properly updated features – would debut at the usual $60 price tag

Every time the title’s sales dip to unacceptable numbers, drop the price. Make $30 the lowest shelf price and price drop accordingly.

Suggestion Three

Break out the free DLC! That’s right, you heard me, give out free downloadable content. This pulls gamers who already own the title to keep playing the title and has the added benefit of brining in new buyers if the DLC is cool enough (make it cool enough). Gamerpics, themes, wallpapers, trailers, and a demo. You can even have free and paid variations of each on title launch, so none of your users feels left out.

While releasing free DLC, you can even introduce low priced DLC – I’m talking $0.50 – $3 max – at the same time, taking advantage of the incremental income. Levels and larger DLC would cost more, expectedly, but the price shouldn’t be higher than that. Any higher and you’ll scare most gamers off.

Yes, I’m serious.

A great suggestion is to do this for multiple situations. Free DLC on launch as well as free and paid DLC on price drop.

Suggestion Four

The best suggestion? Use each of the previous three suggestions simultaneously.

  1. Release your title with a downloadable content bonus to new buyers at an appropriate price. Don’t forget the free/low-cost DLC.
  2. When sales dip below a comfortable level for your title, lower the price by $5-10.
  3. Prepare downloadable content that coincides with the lower price. Both free DLC and low-cost content should be applied.

It combines each of the previous three suggestions to optimal results. Not only does your title stay in the gaming news spotlight, and therefore in the minds of gamers, but those gamers are happy. When your title is in the minds of gamers and they get bonuses over time, they stick with your game and they stick with your company.

Check Page 4 for the wrap-up.

Pages: 1 2 3 4

  • mateo
    Haha! WOW! Keep it up game developers your starting to sound like the oil companies. Couldn't this hold true for any company manufacturing anything? Should car companies not let dealers sell used cars. This is total BS.
  • AmatorySuccubus
    Or maybe game developers should charge GameStop and any other store that sales used games for rights to be able to sell their game used. That way they see some money coming back their way. Then if GameStop didn't want to pay the fee, then they won't be able to sell that game used...but if they did sell it without paying the fee, you could treat it kind of like selling an illegal copy. This could also be used with some of the points you made as well.
  • J-R
    most other stores get 15-20% for got to say that hehe
  • J-R
    i say down with gamestop! i work for them and get a 10% discount on everything but new systems. 10%...???? wtf! they make so much money and thats all we get for 8 bux an hour!! plus we have to BUY an edge card for the extra discount!! i say all devs just don't release new titles at gamestop as well as the other aformentioned solutions let them just be a used game only store.
  • DjDATZ
  • DjDATZ
  • DjDATZ
    Yea. That's another problem. Companies don't seem to understand that gamers are willing to get games through out the WHOLE year. If they just spaced out some of their releases throughout the year and NOT the last 4 months of the year, then they would surely get more attention and sales. Heck, there are SO many games coming out this holiday season, it's impossible to keep track of!
  • DjDATZ
    Agreed. BP, GOW2 and RB2 are starting good trends. People don't care much for movies as it's usually a one way thing...the studio puts it out, and the buyer gets it. End of story. There is no real interaction between the studios and customers. Games are different however due to the fact that they last much, much longer and there usually is an interaction, however finite between the devs and the gamers. Also, games debut at a price point of $60 and movies debut at $30 or less...
  • DjDATZ
    Yep, Criterion would even get my vote for dev of the year for all the support they've been giving BP.
  • DeejayKnight
    Tony, First off, thanks for the comment. I completely understand what you mean on the creation end of the spectrum. It does have to be paid for, and if more titles were profitable those companies could afford to keep that DLC pumping. On that same note of profitability, more companies would make a profit on their games if all of the uber-major hits weren't released in the final three months of the year. Within the past month, I've seen no less than five games that I'm interested in buying, but I can barely afford to pay for one. I'd go more into depth about THAT problem, but that's an editorial for another day entirely... Again, thanks for the comment. These are the kinds of conversations I'm trying to bring about, so keep it up!
  • tr3Ks
    IMO i think that the gaming industry needs to open its eyes and see that for 60$ players want their moneys worth. they want to feel like there is a supreme reason to purchase the game as new. I was very impressed with the GoW2 DLC that shipped with the new games....eventually once even more titles sell you will start to see less people with the distinguishable golden weapons and that will be great for people, not to mention the map packs etc. I would love to see games drop to 50$ at title, that would make me so happy. But look at microsofts few titles that have recently been coming out....I'm not talking about their big games, Im talking about Viva Pinata and Banjo Kazooie. Microsoft has been trying to get game devs to drop their prices on new releases to make games more available. When I think of a hardcore market i think of people that are willing to buy games as new @ 60-70-80$ a pop. But for the low income gamer, they miss out on so many great titles that they have to depend on used games in order to find out what they miss out on., its terrible.... I believe that if gaming companies launched their titles with DLC/Limited Content to weigh in a few extra bucks then it makes it worth it to get that game at release date, and if they would drop the price within 2 months/3months when purchasing drops, I bet they would see more dramatic changes in purchasing due to the fact that Gamestop uses the same style of system, except they seem to base it on how popular the game is coming off of their shelves... I agree that I feel his statement was to tread water with this idea and see how the gaming community will react. And I don't think that it will happen anytime soon. Oh - and could you imagine if they actually did...Guarantee that Movie companies/computer software companies would immediately follow suit. - whats that? you want to render out in 3D studio max? 80$ buddy....or you want to slice this into website pieces? 250$ man. UGGGG This will never happen. there will be riots in the streets.
  • ?? ?? ??
    The problem with free content is paying people to continue cranking out content. If the game isn't good, you can't afford to pay people to continue to work on the game. I don't understand why it took console devs so long to realize they should be creating add-ons / download content while giving the user the ability to do the same. This has been almost standard for pc games now, and the only console game to do this right is Little Big Planet. But how many people are willing to stop making cookie cutter games that will sell to the masses (Saints Row, and all the other GTA rehashes) vs people who will make a high quality game and create a fanbase to sell to (Halo, MGS4, etc).
  • DeejayKnight
    Thanks a lot for the comments, guys! Replies like those are the reason I came up with these suggestions in the first place! Now, the question is, who's going to step up to the plate and make it happen?
  • sedington86
    Very good work! Something probably does need to happen. These people who work like crazy to create these games need to be compensated. Some may argue that used movies get sold, and no one worries this much, but a video game doesn't have a theater release... Burnout Paradise with their free DLC and Gears 2 with the download cards are great examples. Rock Band 2 also had a similar thing for 20 free downloadable tracks.
  • Assassin
    Awesome write up DeeJay! Burnout Paradise is by far the perfect example. More DLC keeps us coming back for more and gives us a reason to keep our games.
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