used games – Techdirt (original) (raw)

David Braben, Once Angry At Used Games, Now A New Business Model Embracer

from the good-decision dept

If all you knew about David Braben was what you found via a search on Techdirt, you might think he’s someone unprepared for the future of his craft. There’s only one article, featuring him many years back in a story in which he appeared to be very angry about the way retailers promoted used-games sales instead of pimping new games. But, as most truly hardcore gamers will know, Braben is so much more than that. Sometimes called “The Godfather of Gaming”, Braben was one of the chief creators of Elite, the breakthrough game produced in the 80’s that was both wildly successful and still serves as the unacknowledged inspiration behind many present titles.

And now he appears to be recognizing the importance of new business models, while also realizing that piracy isn’t the all-out evil many claim. In a fascinating interview with The Telegraph, Braben spoke about Frontier: First Encounters, the latest iteration in the Elite series, which Braben’s company funded through Kickstarter.

The project was launched on US crowdfunding site Kickstarter in November 2012 and aimed to raise £1.25m. “Take a ship and 100 credits to make money legally or illegally – trade, bounty-hunt, pirate, assassinate your way across the galaxy,” read the pitch. The project smashed its funding target, raising over £1.5m, and the subsequent media furore saw a further £700,000 (and rising) added to the pot by eager investors. It is the most successful British game ever to raise funds on Kickstarter.

While I wouldn’t dream of losing sight of what a sign of the times it is that a legend like Braben is turning to new business models for his company, allow me to highlight the importance of that last bit about investors. As I’ve suggested in the past, embracing platforms like Kickstarter is wonderful, but it doesn’t have to be the first and only step. Building up interest through Kickstarter is also a wonderful way to prove the marketability of a product to investors, whose money and backing can then be used to build up a blockbuster-style budget. This is the answer to the question of, “How is Kickstarter going to fund the next AAA game, or international record release, or $200 million movie?” It isn’t, in and of itself, but it can be a demonstrative step one in the process, far more open to the general population than the antiquated process of submitting ideas to traditional gatekeepers.

While that would be enough for a hearty “Huzzah!”, no interview with a video game producer would be complete without questions about piracy. Here, too, Braben finds himself looking on the bright side.

“Piracy, while frustrating, can contribute to game evangelism,” he said. “It can also help you reach new territories. For example, we are huge in China now. In the old days of silver discs, it would have been impossible to break the whole country. We would have needed an office in every province but through piracy, our games are circulating and fans are now seeking us out.

“Piracy goes hand in hand with sales,” he continued. “If a game is pirated a lot it will be bought a lot. People want a connected experience, so with pirated games we still have a route in to get them to upgrade to real version. And even if someone’s version is pirated, they might evangelise and their mates will buy the real thing.”

This is the kind of thinking that can create massively wealthy businesses. He acknowledges that, from his perspective, piracy of his games is irritating. I can understand that. Who couldn’t? But his ability to put that into its proper perspective while also strategizing a way to turn pirates into customers is a beautiful thing. For it to come from the Godfather of Gaming only makes this more important. It’d be like the largest record labels flipping their script completely and attempting life in the new world for once.

The game, as noted, is already funded, so we’re getting it. Here’s hoping it proves to be an even bigger success than it is already so it can serve as a beacon to other creators.

Filed Under: business models, crowdfunding, david braden, used games, video games

Microsoft Capitulates, Removes Online DRM From Xbox One

from the customers-win dept

So, remember when the Xbox One release confused the hell out of everyone and then Microsoft confirmed a bunch of hated, needless restrictions on used games and internet connection requirements? Then there was that whole thing at E3 where the crux of Sony’s presentation was, “Hey, at least we’re not Microsoft?” The backlash, as you can imagine was immensely fierce, with pissed off gamers who know inherently how important the used game market is and how stupid and insulting online requirements are.

Well, Microsoft apparently now knows it too, as they have done a serious about-face on nearly every single one of these plans. Xbox chief Don Mattrick stated on the Xbox blog:

“An internet connection will not be required to play offline Xbox One games – After a one-time system set-up with a new Xbox One, you can play any disc based game without ever connecting online again. There is no 24 hour connection requirement and you can take your Xbox One anywhere you want and play your games, just like on Xbox 360.

Trade-in, lend, resell, gift, and rent disc based games just like you do today – There will be no limitations to using and sharing games, it will work just as it does today on Xbox 360.”

So, all’s well that ends well, right? Fans pushed back and Microsoft listened. Well, perhaps not. When you consider that the chief reason for the backlash was the obvious nature of restrictiveness and money-grabbing in Microsoft’s plans, I expect gamers to not be assuaged by those plans being walked back in the aftermath. The company has made it quite clear what they think of their customers and where their priorities lie. Many jilted people won’t be fooled by this new conciliatory tone.

There is a lesson to be learned here about how a company should treat its customers. Customers meaning the gamers, not the game publishers Microsoft seemed so focused on. I don’t believe they have wiped the chalkboard clean without stain with this announcement.

Filed Under: consoles, drm, used games, video games, xbox, xbox one
Companies: microsoft

Sony At E3: Look How Unlike Microsoft We Are!

from the no-connection-required dept

It has been no secret that Microsoft’s handling of the launch of their Xbox One console has been controversial at best and a complete debacle at worst. As rumors of mandatory internet connections and fees for playing used games made the unsteady transition to reality, dedicated fans of other consoles mobilized to make sure their voices were heard. Most substantial was the fanbase of the Sony Playstation, who made their wishes for a more traditional and open PS4 known. I had mentioned in that post that Sony in particular had a real opportunity on their hands, assuming they were willing to both stick up for their customers and take the issues against Microsoft head-on.

Well, to some extent, that’s exactly what they did at this year’s E3 convention, going out of their way to point out all the ways in which they are not doing things the Xbox-way.

During their Electronic Entertainment Expo press event, Sony Computer Entertainment of America president and CEO Jack Tretton says its PS4 will not restrict used games, nor will it require an online connection.

Tretton specifically noted the PS4 “won’t stop working if you haven’t authenticated within 24 hours,” a jab at the Xbox One and its requirement to perform online checks of consoles.

Now, to be sure, this isn’t a completely unambiguous stance in favor of its customers, but credit Sony for doing what many of our commenters thought they wouldn’t: seeing an opportunity in sticking up for customers and running with it. Having said that, there are still many questions surrounding whether or not the Playstation platform will simply be agnostic with used games, leaving that decision instead up to the game developers and publishers. It might seem a better thing for Sony to simply say they won’t allow the kind of used game pocket-picking that MIcrosoft is codifying, but that might be a bit too much to ask. After all, Sony needs developers for their platform, too. Besides, as long as it isn’t Sony acting in an anti-consumer way, developers that might wish to be restrictive on used games can be judged on their own individual merits. In other words, we’ll actually get to see what the market impact of anti-consumer behavior on used games is.

And if some of the reaction I’ve seen thus far is any indication, such as Sony Entertainment now being listed on Wikipedia’s list of “burn centers in the United States” after they torched Microsoft at E3, developers might begin rethinking their plans.

Filed Under: consoles, drm, e3, online connections, ps4, used games, xbox one
Companies: microsoft, sony

Microsoft's Attack On Used Game Sales Asks Customers To Sacrifice Their Rights To Save An Industry

from the industry-is-not-responding.-kill-process? dept

As Microsoft stumbles towards the eventual release of the Xbox One (an all-in-one console apparently aimed at replacing all of your entertainment devices with a sleek black box equipped with eyes, ears and a frustrating inability to fire up a secondhand game without tossing some cash Points into the tollbooth), gamers (for the most part) have expressed their irritation and disbelief, even going so far as to call on Sony to not eff up the next Playstation with the same sort of purposefully limited feature set.

But, this intentional limitation does have its supporters within the gaming community. One of them is Ben Kuchera, who penned an editorial in support of the new Xbox over at Penny Arcade. He argues that this combination of account lock-in and elimination of used games will be a net win for most gamers, who will presumably enjoy some sort of trickle down effect from game developers.

GameStop may not be able to aggressively hawk used games for $5 less than the new price to customers under these new controls, which is great if you’re a developer or publisher. Once that secondary market is removed you can suddenly profit from every copy of your game sold, and as profit margins rise it’s possible we’ll see prices drop.

Yes, that’s a possibility. But I would imagine it’ll take a few years before new releases start hitting the market on day one for less than $60, especially if Sony goes the other way and keeps secondhand gaming alive. Kuchera also suggests that Xbox may feature more Steam-esque bundles and faster price cuts, presumably because killing the secondhand market will flood game developers with price experimentation-type money. He could be right, but (again) I don’t see this developing the near future.

But here’s where Ben goes wrong.

It needs to be made clear, if all the studio closings and constant lay-offs haven’t made this explicit: The current economics of game development and sales are unsustainable. Games cost more to make, piracy is an issue, used-games are pushed over new, and players say the $60 cost is too high. Microsoft’s initiatives with the Xbox One may solve many of these issues, even if we grumble about it. These changes ultimately make the industry healthier.

Microsoft wants consumers to buy discs but come away with nothing more tangible than licenses when all is said and done. This push has been in the making for several years, with the PC gaming market leading the way. Of course, you can still buy the discs (and resell them — if anyone’s buying) but services like Steam have paved the way for gamers to load their hard drives up with bright, shiny licenses, and not much else. For many, the convenience is a decent trade-off. For others, the speedy application of price cuts makes giving up the right of first sale a little less painful. But Ben’s arguing that we, the public, should willingly give up another chunk of our rights in order to help bail out an industry. Is that what we really want?

In a brilliant response to both Ben Kuchera and another commenter in the Neogaf discussion thread (who maintains that the “detrimental effects” of used game harm the gaming industry), faceless007 argues that we don’t.

You admit you only hold this view because of the detrimental effects (you think) are impacting the industry. You are asserting that a fundamental aspect of property rights and consumer rights as it has existed since the beginning of trade should be adjusted and recodified on a per-industry basis, not because it’s inherently bad or unethical, but just because you think it’s a threat to the industry’s health. Which means you are essentially arguing for protectionism for corporations–consumers are free to exercise their consumer rights only up to a certain point, but if that free exercise is perceived to threaten the viability of the industry, then their rights must be limited in order to save the industry.

It’s one thing to see an industry mouthpiece tout the “benefits” (which, for the consumer, are often “limitations”) of replacing the right of sale with digital license boilerplate full of phrases warning that everything in the “agreement” could change at any given time. We expect that from those who directly benefit by removing or severely limiting the secondhand market. It’s rather galling to hear affected customers arguing for the health of an industry over their own rights.

But faceless007 isn’t done and turns on the industry itself, taking it to task for its self-inflicted inability to flourish in a market that it endlessly exploits to the nth degree.

The industry does not come first; consumers do. I have no sympathy for an industry that cannot properly stumble its way around a viable secondhand market like every other mature industry in the world… If this industry can’t find a way to make money off the primary market — even with DLC and exclusive pre-order content and HD re-releases and map packs and online passes and annualized sequels and “expanding the audience” and AAA advertising and forced multiplayer — then, if I may be so blunt, fuck it. It doesn’t deserve our money in the first place.

If an entire industry has its head so far up its ass, is so focused on short-term gains, and has embraced such a catastrophically stupid blockbuster business model in the pursuit of a stagnant market of hardcore 18-34 dudebros that it thinks it has no choice but to take away our first-sale rights as its last chance of maybe, finally, creating a sustainable stream of profits, then it can go to hell. It doesn’t need your protection, it needs to be taken out back and beaten until it remembers who its real masters are.

Amen.

There are many industries that love having customers but actively hate granting them the control to resell their purchases. It pains them to watch money change hands without taking a bit off the top.

Look at the recording industry. It likes licenses for music on platforms like iTunes. Digital means a lower distribution cost. But it still handles each sale like a physical CD — at least when it comes to paying their artists. The end format is malleable for those who control it. Want to sell your purchased mp3s? Sorry. It’s just a license. Looking for your larger license royalty? Sorry. It’s a CD.

The motion picture industry is no better. Please jump through our DRM hoops and get your entertainment through our portals… until these shut down and you are the only one getting screwed. Why? Because the industry won’t make it if it can’t find the next $200-400 million to throw into holes like “John Carter” and “Green Lantern.”

Do we really need more examples? We need to pay more for games in order to save an industry that’s done things like hand customers a fully, purposefully broken SimCity and then spent the next several weeks denying every contradictory fact gamers dug up? Microsoft may get more developers on board by promising them they’ll never have to “lose” a sale to Gamestop again, but if this is the only sustainable route, then the gaming industry has problems that run much deeper than used game sales. If the Xbox is the “new way,” then purchasers are paying for the privilege of being victimized by an industry that wants its customers to pay for its bad habits.

The game industry thrived for years alongside a secondhand market. If it can’t make it now, it has no one to blame but itself.

Filed Under: consumers, economics, failures, used games, video games
Companies: microsoft

Xbox One Release: Tons Of Questions, Very Few Answers

from the confused dept

Unless, like me, you are looking at the release dates for the next generation of gaming consoles the way a starving hyena watches an approaching gazelle that’s been eating nothing but butter for weeks, perhaps you’re not up on all the information coming about regarding Microsoft’s next console. Actually, as I’ll discuss in a moment, even if you are paying constant attention, you probably still don’t know a whole lot for sure. See, after months and months of speculation on possible features of the next Xbox, Microsoft stupidly decided to not firmly address any of that speculation at the release event for the Xbox One. The most troublesome in terms of bad press have been rumors about online connection requirements and how used games would be handled. I say press, but perhaps I should rather say non-mainstream press, because it’s really been the smaller blogs and citizen journalists that have produced a roundly negative buzz for the Xbox One.

You would think that in a negative and uncertain climate that’s been brewing for the past several months, Microsoft would use the official release press event as a way to clear all of this up. Good answers or bad answers, it’s important that the public and the press have a firm understanding on what to expect out of the console. Aren’t we constantly told that uncertainty is four letter word in economics and business? That’s why it’s so curious that Microsoft appears to have provided very little in the way of answers and what answers it has chosen to supply have been both contradictory and confusing.

So, let’s take the two issues in order. First up is rumors about online requirements.

It turns out that the detail we were murkiest about was the one Microsoft themselves are the murkiest about. The official Microsoft party line on the day the company revealed the Xbox One: “It does not have to be always connected, but Xbox One does require a connection to the Internet.”

Welcome back. I say that because I assume you just spent the past fifteen minutes rereading that last sentence over and over again trying to figure out what the hell it means. As it turns out, the key word is “always.” The Xbox One will require an internet connection at certain points, but it won’t need to constantly be connected to function. So, what are those certain points? Well, nobody, including Microsoft, seems to know, which is strange of them to admit since it’s their nun-punching freaking product. Microsoft executive Phil Harrison told Kotaku that he “believes” a connection is required once every 24 hours. Oh, and possibly one is needed in order to play a new game for the first time. Also when you first use the console. The lack of finality in these answers is astounding, particularly coming from a Microsoft executive giving interviews at the release event. Imagine going to your local auto show and having a Ford Motor VP telling you how wonderful their new car is, but can’t firmly answer any questions about its motor or how many miles-per-gallon it gets?

And with the question of used games, we do no better. Harrison told one reporter:

“We will have a system where you can take that digital content and trade a previously played game at a retail store. We’re not announcing the details of that today, but we will have announced in due course.”

Then told another:

“We will have a solution—we’re not talking about it today—for you to be able to trade your previously-played games online.”

What you immediately notice is not only the lack of any specifics to one of the major questions hanging over the console like a set of rain clouds, but even these two non-answers are different. The first talks about used games being traded at retail stores, while the second seems to mention trading games online. That’d be a huge development if true, with some kind of Microsoft online trading platform threatening GameStop and other used game retailers. Speaking of which, reports are already surfacing that Microsoft is requiring agreements limited to select retailers to actually be able to buy and sell used games. If those reports are accurate, trading games will only be possible through those select retailers and the game publisher and Microsoft will take a massive cut of the transaction, leaving retailers with very little margin. The end results of this setup will be higher prices for used games and the inability for gamers to trade games with one another.

Still, as bad as that would be, Microsoft hasn’t even officially confirmed that program either. Between that uncertainty and that of online connection requirements, it’s no wonder the general public hasn’t been keen on the Xbox One release yet. There is a market, sadly, for the kind of walled gardens and restrictive requirements discussed above. Apple’s mobile devices prove that. But where Apple officially and boisterously owns those concepts, Microsoft’s opaque stance on these questions can only mute any release buzz for their new console. It’s high time the company got everyone on message.

Filed Under: always on, used games, xbox, xbox one
Companies: microsoft

Sony Patent Application Takes On Used Game Sales, Piracy With Embedded RFID Chips In Game Discs

from the Sony-obviously-feels-it's-not-hated-enough-already dept

As has been covered here before, many game developers and publishers are actively searching for ways to scuttle the used game market. Efforts to date have usually included some sort of online requirement (which doubles as DRM) or withholding additional content from secondhand purchasers through the use of one-time download codes.

The argument that used game sales are adversely affecting the profitability of games would seem to be debunked with each year of record-breaking sales, but somehow major publishers are still able to convince themselves that no one should be allowed to purchase games for anything less than the full retail price. Also ignored is the fact that money made from trade-ins is often put toward the purchase of new games — and that the secondary market gives new purchases additional value, as they can be traded in down the road.

Ars Technica reports that Sony seems to have found a way to prevent secondhand sales without having to rely on one-time codes or any sort of online component that could potentially be circumvented. Sony's patent application details the deployment of embedded RFID chips as a weapon against secondhand sales.

A newly published patent application filed by Sony outlines a content protection system that would use small RFID chips embedded on game discs to prevent used games from being played on its systems, all without requiring an online connection. Filed in September and still awaiting approval from the US Patent Office, the patent application for an “electronic content processing system, electronic content processing method, package of electronic content, and use permission apparatus” describes a system “that reliably restricts the use of electronic content dealt in the second-hand markets.”

The used-game blocking method described in the patent involves a “radiofrequency tag” and a type of programmable ROM chip that are paired with each game disc and can communicate wirelessly with the game system. The tag and chip can be used to store “unique information” about each console the game has been played on. Thus, when the game is used on a second system, the unique information stored on the disc can be compared to the information stored inside the new hardware, and in turn checked against “use permission” data stored on the EEPROM chip itself. As described in the patent, this “unique information” could be a system identifier or some sort of unique user ID that is somewhat portable between systems.

As Ars Technica points out, this could double as an anti-piracy device, ruling out off-the-shelf media for copying. In addition, the patent mentions using the RFID tag to “decrypt content” on the disc, which could be used to lock up certain content until its paid for. In theory, this would allow secondhand sales, but allow the publisher to charge purchasers a fee to unlock the full game.

Two concerns pop up immediately. There’s a possibility that the still-theoretical RFID system would make games unplayable if lent to others or taken to a friend’s house and played on their system. This seems a bit extreme, but publishers, who are actively seeking to destroy the secondhand market, very likely wouldn’t mind if these two options were taken off the table. This leads to the second concern: creating discs that are “locked” to a certain system would seem to violate the right of first sale. This means reselling or lending the game would no longer be an option, both of which are currently permitted by law. (Although under debate at the moment…) As Ars Technica points out, though, there are ways publishers and developers can skirt this issue:

While this kind of resale-blocking technology would seemingly run afoul of the first sale doctrine codified into US law, legal experts seem unsure about whether that doctrine would be enough to overcome the end-user license agreements common to video game sales. After all, the practice of restricting game resale is already taking root through the wide adoption of digital distribution, which prevents players from reselling downloadable games in almost all cases.

If this patent is granted and results in any of the above scenarios, we’ll have finally reached the point where physical items are just as ethereal (in terms of rights granted to the purchaser) as the “licenses” currently being sold under the name “ebook,” “digital download” and “mp3.” This would be great news for overreaching copyright holders, not so much for the rest of the public which is being asked to shell out larger amounts for AAA titles with each console generation.

It seems unlikely that Sony would pursue this hardline against used sales, but it’s not like it hasn’t run up a string of bad decisions in the recent past. Not only that, but the additional “anti-piracy” features of the system, combined with curbing secondhand sales it receives nothing from, may be just too irresistible to turn down.

Filed Under: patents, rfid chip, used games
Companies: sony

Video Game Developers Continue To Ignorantly Attack Used Game Sales

from the not-this-again dept

Every few months or so we see yet another story of a video game developer or publisher hating on the used games market, claiming that it’s totally killing video games. Of course, the actual video game market is thriving, but facts aren’t that important. Furthermore, as we’ve been pointing out for many years, studies have shown that a thriving used market helps the primary market, because buyers know they may be able to resell products in the future, and possibly make back a portion of the money in question.

Still, it doesn’t stop game developers from insisting that the sky is falling and the world is ending because of used video game sales (thanks to Silence8 for being the first of many with that link):

Game designer Richard Browne has come out swinging in favor of the rumored antipiracy features in the next-gen PlayStation Orbis and Xbox Durango. “The real cost of used games is the damage that is being wrought on the creativity and variety of games available to the consumer,” Browne writes. “The real cost of used games is the death of single player gaming.”

The HotHardware post on this does a nice job debunking the claims, though it seems that earlier comments from the same site, noting that used game sales don’t appear to be economically different than used books, should have ended this debate long ago. If video gamers are struggling to compete with the used market, they only have themselves to blame. Unless they want to overturn the first sale doctrine, they’re just going t have to suck it up and learn to live with it. The idea that there’s less creativity in the video game space because some people buy used games is simply ridiculous and not supported by any facts. If some publishers/developers are struggling to make money, then they need to work on problems with their own business model, rather than lashing out at the used market.

Filed Under: first sale doctrine, used games, video games

Want Revenue From Used Games? Just Have GameStop Buy DLC Codes For The Customer

from the that's-one-way dept

We all know that many game companies are really upset about being locked out of the used games revenue stream. Warner happens to be one of those companies. With the release of Batman: Arkham City, Warner is giving a free code to new game buyers that lets the gamer play as Catwoman during the game. If you buy the game used, you will need to buy a new code to access Catwoman. That is if you buy it used anywhere other than GameStop.

According to a memo sent to Kotaku, Warner and GameStop have partnered up to give free codes to buyers of used copies of Batman. Granted, GameStop is most likely paying for these codes for the customer and is most likely getting them at a discounted rate. This happens to be a great deal for both companies and even some customers. Warner gets the satisfaction of capturing used game revenue with a reduced risk of customers deciding not to buy the redemption code. GameStop gets a leg up on the competition which don’t have the same deal. Finally, customers of GameStop don’t have to shell out the extra cash to play as Catwoman.

This is an interesting move on Warner’s part. GameStop is the poster child for the evils of used games, according to many games industry veterans. However, even the toughest critic of GameStop’s policies recognizes the power this one brand has over the game consumer, thus the deal. If GameStop is willing to make such a deal with Warner, would they be willing to do the same with other companies such as EA or Ubisoft?

Of course, there are additional ramifications to consider. How will this affect the relationship with other game stores, both in and outside the US, which don’t have the same leveraging power? Will those smaller stores be coerced into deals that are not as sweet for them and their customers? Regardless of the ramifications, it is nice to see a company actually be proactive about capturing used games revenue rather than just complain and punish players. Why can’t more companies act this way?

Filed Under: batman, catwoman, used games
Companies: ea, gamestop, ubisoft, warner

Video Game Exec Claims Used Games 'Cheat' Developers

from the lets-learn-you-some-economics dept

For whatever reason, every few months or so, yet another clueless video game company exec spouts off about how the used video game market is somehow unfair or hurting video game developers. We’ve seen it again and again and again. However, since a whole bunch of you keep submitting the story that Cory Ledesma from THQ has made the downright laughable claim that the used video game market “cheats” developers, it seemed worth discussing.

This shows a fundamental misunderstanding of the law, basic economics and the customers THQ is failing to serve. On the law, Ledesma and others should familiarize themselves with the First Sale doctrine before making silly statements. On economics, repeated studies have shown that a healthy secondary market for products actually significantly helps the primary market. If you take more than a second and a half to think about it, it’s easy to understand why. If there’s a healthy secondary market for products, it reduces the risk for the buyers in the primary market. That is, if they buy the product and don’t like it, they know they’ll be able to resell it and recoup some of their losses. That makes it effectively cheaper for them to buy the primary product, increasing the number of sales. On top of that, the secondary market also helps in markets like video games in acting as a good way to segment the market, and get new buyers into a game or series of games. I’m sure many of the folks who are now buyers in the primary market, at one time purchased an earlier game in a series used. How is it that so many video gaming execs have so much trouble recognizing these basic concepts?

Filed Under: cheating, cory ledesma, secondary markets, used games, video games
Companies: thq

EA Continues To Piss Off Lots Of Customers By Trying To Block Used Market With Single Use Codes

from the such-anger dept

Late last night, people started submitting variations on this story about how EA is expanding its controversial program to use one-time use codes on EA Sports Games, which basically let purchasers access more aspects of a game, but only with the purchase of an additional 10or10 or 10or15 code. The only real reason for this is to hold back the used video game market — something that the video game maker has been bitching about for ages, saying totally nonsensical things, such as claiming that used video games defraud the industry and are bad for consumers.

Of course, the actual research suggests exactly the opposite. A robust secondary or “used” product market actually helps boost the original market in a variety of ways. First, it creates some product segmentation, allowing those who wouldn’t necessarily buy the product at the higher price to get into the market. Second, it actually makes the original game more valuable, because buyers know they can turn around and sell it and get some of their money back at a later date. Taking that option out of the market actually hurts the demand in the primary market.

But, an even bigger issue is just how much people absolutely hate annoyances like this. I wasn’t going to post the story originally, because it’s just a continuation of EA’s program. But people have been submitting it non-stop all morning — and every single one of them is expressing serious anger about this decision on EA’s part. Compare that to the widespread love and admiration from people buying the Humble Indie Bundle of video games, where the developers specifically decided to focus on rewarding customers, rather than punishing people for doing stuff they didn’t like. Now, obviously, EA is much bigger than a bunch of indie developers, and perhaps they feel they can get away with obnoxious practices because they’re so big, but it’s a strategy that is likely to backfire in the long run. Pissing off your biggest fans and customers is not a long-term strategy for success.

Filed Under: used games, video games
Companies: ea