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#Gaming

Edited by FoMan123: 6/18/2013 4:35:30 AM
14

Why used games are bad.

I will begin with a video that you can watch to show how used games are bad. First off, i would like to say, this is not a defense of either console, i am purely stating why used games are bad. Second, if someone sees a issue in my math please tell and i shall correct it. Ok, many people buy used games. Most people do, but it is hurting game developers and publishers. It gives them less money, thus cause them to lose more money. So many studios have gone out of business this year alone, so i would like to show how, with math, why used games are bad. [url]http://www.jjgames.com/page/used-games-infographic[/url] This is the link i am using to draw my statistics from. As it says, is 2008 Gamestop had a revenue of 8.7 billion dollars. Pretty good if you ask me. But their is a chart that shows that 23% of their revenue is from used games. Now lets start the math. I will go ahead and point out these constants. New game = $60 Used game average cost = $40 (i came up with this number myself, but i feel it is pretty accurate) 23% is converted into .23 Now more math. 8,700,000,000*.23 = 2,001,000,000 billion dollars So Gamestop's revenue in 2008 was 2 billion dollars from used games. Now if the average used game cost $40 you can divide that 2 billion by 40 and see how many used games where sold. 2,001,000,000/40 = 50,025,000 million used games sold Now with that many used games sold at the average of $40, multiple the 50 million by the average of the new game price of $60. That would be the amount of revenue from those 50 million games if they were sold at the new game price. 60*50,025,000 = 3,001,500,000 billion dollars if those games were sold at the new game price. So now just take the difference. 3,001,500,000 - 2,001,000,000 = 1,000,500,000 billion dollars that would have been made off those games if they were sold at a new game price. So that means that not only does Gamestop lose a ton of money, so do the game developers and publishers do. But mostly we are just worried about the developers who lose money, and some even close down their studios. And that was only Gamestop, that doesn't count other retailers too that sell used games. As you can see, developers and publishers lose a ton of money from used games. And those stats were from only 2008 too.

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  • Edited by Mega Blaziken: 6/18/2013 11:32:31 AM
    one flaw in your calculations, all the publisher gets is whatever gamestop/other retailers pay for in buying the copies, not individual sales, hence if you make a shit/boring product, gamestop has to give consumers their money back so that they can reimburse their consumers, which then means they either have to A) send the copies back, causing the publisher/dev to lose out, or B) sell the bad game at a lower price in order to make the profit that they originally made in order to pay off the dev/publisher back, now which makes more sense? A) selling a product at a lower price in order to attempt to cover losses, or pay your debt to the source of your product, or B) just sending the games back and causing your source to lose out, and eventually go bankrupt from all the refunds THEY have to do for the retailer? there's a reason 60-70% of all game sales happen in the first week, and that's because the retailers pay off the devs after they turn a profit from the product.

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