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pkt-zer0: Misplaced concerns, since car manufacturers don't lose significant amounts of cash to used car dealers, pehaps?
Perhaps? So you're making an assumption now?
How are video game developers supposedly losing money to second-hand sellers where other industries are not?
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pkt-zer0: So? In other areas, second-hand sales don't take such a large cut of the revenue to stifle innovation, so there'd be no need for such measures there.
How does it stifle innovation when they were paid for the product? Once the product has left their hands, which it did once it went to the retailer, they should have no expectations to be paid any more money for that item, because it is no longer their property.
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pkt-zer0: And I'm still not sure how you can call the developers greedy...
... when retailers only make a couple of dollars from a new game sale (by GameStop's claim, which is why they are bullish to sell used games), then they want a percentage of a used game sale? Sounds greedy to me.
The developers are already paid by the publisher. The publishers then sell the developers games to the retailers, the retailers sell them to the consumer.
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pkt-zer0: Again this "just like every other" thing. I don't suppose every other second-hand retailer puts out a nearly identical product for 90% of the price, with a 50% profit margin, right in the window of opportunity for the original product, leveraging the marketing force behind it as well.
That's called marketing. They're working to their advantage. GameStop isn't the only company to do that, and again, if the publishers don't like it, they can either compete, directly or by forming a union between them, or by trying to make an agreement with GameStop and other second-hand retailers to get a profit from used sales, but in order to do that, they need to bring something to the table to make it profitable. And, to try and make an agreement with second-hand retailers, they would probably have to make agreements with movie and game rental companies for second-hand retailers to bite.
And besides, if publishers really feel that GameStop threatens their livelihood, why do they sell games to them? They have the right to deny selling to GameStop or other second-hand retailers. Or, even worse, they can start putting EULAs with console games (or worse, DRM) and "kill off" all capabilities of second-hand sales. And with it, the industry.
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pkt-zer0: So no, not like every other second-hand retailer. But, as before, feel free to prove that wrong.
I believe you're the one trying to argue for them in a way that is inconsistent with every other industry. The burden is on you to prove it right.
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pkt-zer0: Publishers turning into retailers as well, huh. Good idea in theory, doesn't seem too practical, though - how much of a chance would they stand against the already established large retailers?
It may not be practical, but if they aren't willing to compete for that money, they honestly don't deserve it.
You have to take a broader look at it. What you're asking for, for a cut to go back to the developers/publishers would a) require either a price raise for used games from the second-hand retailer, which hurts the company, b) causes less money to go to the second-hand retailer, which hurts the company, and c) cause other industries to want the same, most likely starting with movie and music companies.
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Weclock: Also, it has been said in here, that second hand sales, is protected by the U.S. goberment, on U.S. soil.
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pkt-zer0: That's nice, but pretty irrelevant. Sure, it's legal, doesn't mean it isn't driving gaming into the ground (it's not like it's in a good shape as it is, either).
Considering it is, as of right now, as "recession" resistant as it is in the US, means it isn't hurting nearly as bad as you're making it out to be.
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illegalyouth: your b) option is currently not legally enforceable.
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pkt-zer0: Doesn't mean it wouldn't be better for gaming.
Better for the game companies, but possibly not better for the consumer, and, being a consumer, that's where my concern lies.
Post edited December 11, 2008 by ChaosTheEternal
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Weclock: you might also want to give this a read, Clagg..
http://www.theinquirer.net/inquirer/news/306/1045306/is-the-half-life-2-eula-illegal
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Clagg: You're quoting the Inquirer's guesswork and questions as proof? And there was me thinking you were one of the less theatrical here.
Not one EULA has been proven to be illegal, except under business conditions where extra implied warranties were used not the EULA proper. For example "Opening the box implies that you have read and understood the EULA in the box " Extreme I know but I know how fluffy some people get when reading stuff.

EULA's have been challenged as Illegalyouth has just quoted but if you, illegalyouth, were to read what it states instead of just quoting, (no offence intended but have a proper read) the EULA was challenged in the context of a boxed set which could be distributed under the Copyright act 1976 as an exhaustion rule. They did not rule the actual EULA to be illegal just a boxed collection to be placed under a blanket standard EULA which prohibits resale. You need to understand what you're quoting.
As a systems maintainer and general bodgit and scarper for my company my bosses read, understand and scrutinise EULA's for a living to escape nasty pitfalls with new software. If EULA's were illegal they would have been stopped many, many years ago by the business sector well before us mere consumers.

Nope, I never said it was fact, just said you might like to read it. It was an interesting read, was it not?
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honorbuddy: You're saying that the state of game companies is in a bad place? As in they are spending way too much money for how much they are making or what? I feel like the game industry is raking in more money than it used to, but I may be wrong.

Revenues are higher, costs are WAY higher, prices still pretty much the same, end result being they don't have enough cash lying around to be able to afford more risky, innovative titles. For example, In '97, Fallout could get away with being a simulation of PnP RPGs - many would argue that nowadays, Fallout 3 couldn't have gotten away with being anything but a shooter-RPG. Games becoming less diverse is something I find to be very unfortunate.
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honorbuddy: And second, your problem is with stores like Gamestop that make money by selling overpriced used games or with people selling used games like at a yard sale or through craigslist and the developers not getting any of that cut?

The former.
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illegalyouth: if you don't want to buy used, you don't have to.

Yeah, you can buy the exact same game for slightly more money. Fair choice?
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illegalyouth: er, no. i don't recall any of your linked articles stating that developers can legally require retailers to share the profits from used games.

I wasn't too clear about this, sorry. I meant retailers not being allowed to sell second-hand PC software being legally enforceable: that'd mean the first sale doctrine isn't absolute, then.
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ChaosTheEternal: And besides, if publishers really feel that GameStop threatens their livelihood, why do they sell games to them?

Because then they'd be losing a significant amount of their retail sales as well. Lesser of two evils, basically.
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ChaosTheEternal: Or, even worse, they can start putting EULAs with console games (or worse, DRM) and "kill off" all capabilities of second-hand sales. And with it, the industry.

I believe Steam is actually doing pretty well, despite the lack of second-hand sales.
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ChaosTheEternal: I believe you're the one trying to argue for them in a way that is inconsistent with every other industry. The burden is on you to prove it right.

Oh, come on. I've already provided the numbers I'm going by, all I'm asking is that you do the same.
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ChaosTheEternal: How does it stifle innovation when they were paid for the product? Once the product has left their hands, which it did once it went to the retailer, they should have no expectations to be paid any more money for that item, because it is no longer their property.

They expect the game to be sold to one person (see the EULA), so the game's priced accordingly. Ever noticed how other software differentiate between single-user/multi-user/unlimited licenses as well?
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ChaosTheEternal: Better for the game companies, but possibly not better for the consumer, and, being a consumer, that's where my concern lies.

So does mine. I just don't think Gamestop's bloated existence contributes much to making better games.
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ChaosTheEternal: Better for the game companies, but possibly not better for the consumer, and, being a consumer, that's where my concern lies.
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pkt-zer0: So does mine. I just don't think Gamestop's bloated existence contributes much to making better games.
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Weclock: yeah, but it shouldn't contribute, it should be the consumers who contribute. If a game results in no sequels being made, despite being loved by everyone then they will learn the perils of second hand sales.
Post edited December 11, 2008 by Weclock
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Clagg: EULA's have been challenged as Illegalyouth has just quoted but if you, illegalyouth, were to read what it states instead of just quoting, (no offence intended but have a proper read) the EULA was challenged in the context of a boxed set which could be distributed under the Copyright act 1976 as an exhaustion rule. They did not rule the actual EULA to be illegal just a boxed collection to be placed under a blanket standard EULA which prohibits resale. You need to understand what you're quoting.

i did read them before linking. the point is that the EULA was challenged and found to be non-binding. another case, Step-Saver Data Systems, Inc. v. Wyse Technology, came to the same conclusion regarding EULAs as in the adobe case regarding non-bundled software.
the basis of the challenge against EULAs is that they are a form of contract law used for the purpose on circumventing consumer rights and federal statutes.
no one is arguing the illegality of EULAs. the argument is whether or not they are legally binding. the terms have different meanings.
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pkt-zer0: Yeah, you can buy the exact same game for slightly more money. Fair choice?

it's still your choice. no one is forcing you to buy used.
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pkt-zer0: I wasn't too clear about this, sorry. I meant retailers not being allowed to sell second-hand PC software being legally enforceable: that'd mean the first sale doctrine isn't absolute, then.

no, you misunderstood what i had written. when i said legally enforceable, i was not referring to what you have written directly above. i was talking about forcing retailers to give a percentage of the profit of used game sales to developers, which was your suggested option b) several pages back stated. you wrote, "used games for 20$, where a) 0% or b) 10/20/30/X% of which goes to the devs." option b) is not legally enforceable because developers do not own the copies anymore -- ownership was transferred to the first buyer. courts will not budge on this.
retailers can sell used PC software; however, developers have made the sale of used PC software valueless by tying the software to unique CD keys. therefore, retailers have no incentive to sell used PC software.
Post edited December 11, 2008 by illegalyouth
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ChaosTheEternal: And besides, if publishers really feel that GameStop threatens their livelihood, why do they sell games to them?
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pkt-zer0: Because then they'd be losing a significant amount of their retail sales as well. Lesser of two evils, basically.
Publishers had no problem selling games before the existance of GameStop. I would think if they stopped selling new games to GameStop, many people would not shop there due to a lesser expectation of buying a game. Hell, there are games I can't even find in GameStop, used or new, that have been out long enough to possibly have been sold to a GameStop.
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pkt-zer0: I believe Steam ...
Steam doesn't do console games.
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ChaosTheEternal: I believe you're the one trying to argue for them in a way that is inconsistent with every other industry. The burden is on you to prove it right.
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pkt-zer0: Oh, come on. I've already provided the numbers I'm going by...
Which were only the numbers saying how much GameStop made and their profit margin, not how much the video game developers and publishers have lost due to second-hand sales, which is what you are claiming, but what I'm not seeing.
Quite frankly, I don't believe they can come up with those numbers, because, just like piracy, there is no way to correlate someone who did not purchase the game (in this case, new) to a lost sale. For all they can know, that person wouldn't have purchased the game at all, in which case the amount of money they would see is the same: $0.
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pkt-zer0: They expect the game to be sold to one person (see the EULA)...
PC games do. Console games do not have a EULA as PC games do, therefore, the publishers should not necessarily expect the game to be sold to only one person.
Since PC software, including games, are usually installed onto a system and do not always require the disc to use the software (bet you'd love Windows if it required the disc in the drive to boot up, huh?), they include licenses that state that it can't be resold, so one person can't install it, then pass it to someone else who also installs it. That would be two copies for one purchase, which is what they do not want.
There are ways in some cases for the license to be revoked so it can be transferred to another or returned, but, quite honestly, most companies wouldn't even handle it.
Console games don't have a EULA, but also require the disc to actually play. Therefore, one copy per purchase, no matter if it is the first purchase or the fiftieth.
Oh, and since we're talking about second-hand games and retailers, GameStop in particular, it's pointless to keep coming back to PC software. They refuse to buy them second-hand due to license agreements (officially) and limited use registration codes (primarily), but they will buy console games, which contain neither.
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ChaosTheEternal: Better for the game companies, but possibly not better for the consumer, and, being a consumer, that's where my concern lies.
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pkt-zer0: So does mine. I just don't think Gamestop's bloated existence contributes much to making better games.
I don't think the fact that they keep trying to sell tech demos or "eh, good enough" games to people contributes much either. In fact, it's probably worse, because it lowers the people's trust in the company, makes them less inclined to purchase games from them in the future.
I don't know how many times I tried to convey the fact that PC game resales and console game resales are two different things..
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ChaosTheEternal: Console games do not have a EULA as PC games do, therefore, the publishers should not necessarily expect the game to be sold to only one person.

Games are expensive enough as it is, pricing them with the expectation of only every fifth or so guy paying for it would be pretty bad.
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ChaosTheEternal: Which were only the numbers saying how much GameStop made and their profit margin, not how much the video game developers and publishers have lost due to second-hand sales, which is what you are claiming, but what I'm not seeing.

Yeah, people are willing to spend two billion dollars (that is, real, actual money, not would-be revenue as is the case with piracy) on used games, but if they had to fork out five bucks more for each title, not a single copy would be sold. That's quite an extreme price sensitivity you're suggesting there.
Instead of buying 12 used games for 55 bucks a year, you could just buy 11 new games for 60 instead. Not a horrible sacrifice that has to be made.
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ChaosTheEternal: I don't think the fact that they keep trying to sell tech demos or "eh, good enough" games to people contributes much either.

Well, they're just making what the people will buy, I guess. But even then, there are a couple of good games even on consoles, so saying "let 'em die" would be throwing out the baby with the bathwater.
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ChaosTheEternal: Quite frankly, I don't believe they can come up with those numbers, because, just like piracy, there is no way to correlate someone who did not purchase the game (in this case, new) to a lost sale. For all they can know, that person wouldn't have purchased the game at all, in which case the amount of money they would see is the same: $0.

You should've just started off with this, saying that no one can prove anything, anyway. I wouldn't have bothered, then.
in the instance of games hardware however, I find new to be the best..
as in I bought the rockband drumset new, because used it was only 5 dollars cheaper..
and we all know that the rockband drumset hangs around forever.
I don't disagree that developer costs have spiraled out of control, but a lot of THAT is there own damn fault. Stop trying to pump out 1000 titles a year, half of which are absolute B-list garbage you're not even going to break even on. Stop spending hundreds of thousands of dollars on insane high end graphics engines that only 20% of gamers can even USE, and ignoring making the game actually interesting and fun to play (Hi there, Far Cry 2). Cut down on overhead and insane development costs, and the cash 'loss' you're suffering is going to drop off substantially. Plus, as added bonus, you'll actually have the time and resources to SUPPORT your releases, which tends to make gamers happy.
Very well put, sir!
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pkt-zer0: Yeah, people are willing to spend two billion dollars (that is, real, actual money, not would-be revenue as is the case with piracy) on used games, but if they had to fork out five bucks more for each title, not a single copy would be sold. That's quite an extreme price sensitivity you're suggesting there.
Especially going into a recession, every dollar now counts. But, at the same time, quality of product counts too. New games (except from GameStop) are "guaranteed" to be in working condition. Used games, including from GameStop, are at most "guaranteed" to be just the disc and "in working condition". Note, that "in working condition" generally means jack squat when you're referring to GameStop, though.
At best, if a person can buy a game for $60 complete with the disc in pristine condition or buy the same game for $55 complete with the disc in pristine condition, what do you think they would buy? The only thing that works in favor of the video game developers is that the latter is not a guarantee.
Besides, I don't recall any specifics in those numbers of "how much GameStop made" that specified how much of those profits were from their second-hand sales of games actively being sold as new in the same time frame. Remember, GameStop and other second-hand retailers will sell games from older generations that you cannot buy new. Calculating that would be closer to any numbers they can claim as "lost sales" than just every penny GameStop and other second-hand retailers earned.
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pkt-zer0: Instead of buying 12 used games for 55 bucks a year, you could just buy 11 new games for 60 instead. Not a horrible sacrifice that has to be made.
It can be if you're not privy to buy them all at the same time and on the fence about some of those games, even worse if the publishers don't provide a demo. That way, if they're disappointed about the game, they won't be out as much money if they turn around and trade it in, as long as they would get the same amount for each trade-in (meaning the used copy is complete).
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pkt-zer0: ... so saying "let 'em die" would be throwing out the baby with the bathwater.
I'm didn't say "let them die". Never did, and I don't believe they should, either. But, I honestly think they're doing significant damage to themselves by focusing their resources too far away from the quality of the game, which hurts sales because more people will feel that the game is not worth the price, so those people will either skip the game entirely, wait for it to drop in price to what they want to pay, or wait for a used copy that is within what they want to pay.
Unfortunately for video game developers, the first and the third are more likely, and even the second would hurt their profits.
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pkt-zer0: You should've just started off with this, saying that no one can prove anything, anyway.
Won't stop some people from trying, but estimations can be made. The estimations should not assume a 1-to-1 correlation, but considering they've tried that from estimations of lost sales to piracy, I bet they would do the same for second-hand sales, which doesn't help their cause.
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Crassmaster: I don't disagree that developer costs have spiraled out of control, but a lot of THAT is there own damn fault. Stop trying to pump out 1000 titles a year, half of which are absolute B-list garbage you're not even going to break even on. Stop spending hundreds of thousands of dollars on insane high end graphics engines that only 20% of gamers can even USE, and ignoring making the game actually interesting and fun to play (Hi there, Far Cry 2). Cut down on overhead and insane development costs, and the cash 'loss' you're suffering is going to drop off substantially. Plus, as added bonus, you'll actually have the time and resources to SUPPORT your releases, which tends to make gamers happy.

People are probably going to start thinking around here that I have no taste, but I just started playing Far Cry 2 and am actually loving it. Granted, I've only put in a couple of hours since I want to finish Still Life first.
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Crassmaster: I don't disagree that developer costs have spiraled out of control, but a lot of THAT is there own damn fault. Stop trying to pump out 1000 titles a year, half of which are absolute B-list garbage you're not even going to break even on. Stop spending hundreds of thousands of dollars on insane high end graphics engines that only 20% of gamers can even USE, and ignoring making the game actually interesting and fun to play (Hi there, Far Cry 2). Cut down on overhead and insane development costs, and the cash 'loss' you're suffering is going to drop off substantially. Plus, as added bonus, you'll actually have the time and resources to SUPPORT your releases, which tends to make gamers happy.

As much as I agree with that, 100% of Xbox 360 gamers can play xbox 360 games (we would hope) and same goes for PS3, Wii, DS, and PSP.
Some DS games even work on the PSP. SO :P
remember that for the most part, pc games aren't sold second hand.
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Crassmaster: I don't disagree that developer costs have spiraled out of control, but a lot of THAT is there own damn fault. Stop trying to pump out 1000 titles a year, half of which are absolute B-list garbage you're not even going to break even on. Stop spending hundreds of thousands of dollars on insane high end graphics engines that only 20% of gamers can even USE, and ignoring making the game actually interesting and fun to play (Hi there, Far Cry 2). Cut down on overhead and insane development costs, and the cash 'loss' you're suffering is going to drop off substantially. Plus, as added bonus, you'll actually have the time and resources to SUPPORT your releases, which tends to make gamers happy.
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Weclock: As much as I agree with that, 100% of Xbox 360 gamers can play xbox 360 games (we would hope) and same goes for PS3, Wii, DS, and PSP.
Some DS games even work on the PSP. SO :P
remember that for the most part, pc games aren't sold second hand.

I agree with you. I guess I'm sort of looking at the fact gaming companies are crying about lack of revenue from used sales. Well, okay, instead of trying to get extra revenues that by ever business law you are not entitled to, maybe try reducing your costs and overhead to balance it out.