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Now the retailers are complaining about second hand sales Popular
   January 12th, 2012 clock image 9:00 am

So 2011 saw the introduction of online passes for certain video games where a one time code was included in the box for online gameplay but then if you sold your game to a BT Games or the like and someone else picked it up for cheap then they’d be forced to fork out a little bit more to get a new online code from the publisher.

This idea was implemented as a direct response to the second hand market where publishers bizarrely think they should get a share of the revenue of the sales because it’s their product or something like that.

Obviously that makes no sense and therefore it hasn’t ever really been considered as viable until now… yes the retailers in the UK are now publicly mulling over the possibility of giving the publishers a share of the second hand game sales if they agree to get rid of the one time pass idea.

Which points to these passes really hitting them pretty hard as they used to make a killing out of the second hand sales market and now when you are faced with a decision to get FIFA 12 for R450 or R300 + online code it’s unsurprising that more people are just buying new.

But since they are buying from the same retailer why are the retailers upset? Well because they are only making around R50 profit on the new game and R150 on the second hand one.

Will a revenue share solve this problem? No… simply because the portion of revenue the publishers will want would equate to the cost of the online pass and therefore you’re back in the same situation.

I’m oddly enjoying seeing the retailers squirm a bit but I think that’s simply because I’m not a nice guy.

What I’m not enjoying is seeing the death of the second hand market. At least we can pinpoint its death. It was 2011 and EA started it with Project $10

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  • http://twitter.com/Valshen Garth Holden

    The second hand market is one of the reasons I moved from pc onto consoles. Will be sad to see it die, and if it does, a LOT of retailers are going to have tons of extra, static stock that won’t move until the price drops.

  • Henk Roux

    It might not die completely. Good single-player games like Uncharted and the two Batmans for instance would still have value in the second hand market place. It’s only COD,BF etc that would suffer since their backbone is MP.

  • Ryan

    I went to a BT Games and wanted to buy a second hand game. I was told that i would need to sign up for an account at BT games. I asked if i need a account to buy a new game, to which they replied no. So i just said forget it. A second hand game is not worth walking back to the car for my ID and filling in a form for a BT games in a city i dont even live in. Plus i dont even use BT games a lot. They can keep there second hand games.

    Would anyone like to buy my second hand games? Here fill out a form 1st.

    • http://www.craiglotter.co.za/ Craig Lotter

      Ryan, you know the laws that were put in place to tighten up on second hand sales by the police in order to help fight crime? The ones applied to pawn shops and the like? Surprise, surprise, they actually apply to any second hand goods, hence the BT Games form filling when purchasing. One of the guys working there said they get hassled at the end of every month by someone for the paperwork, so rather safe than sorry! Sucky, but that is how it is.

      • Magius

        Isn’t that for the SALE of second hand goods?  That makes sense to prevent the sale of stolen goods, but why hassle the customer who wants to buy second hand goods.  Seems like an illogical application of a logical law to me.

        • http://www.craiglotter.co.za/ Craig Lotter

          Nope, it is quite correct. The law requires that the seller of second hand goods has a record of who they sold to/bought from. Helps prevent thieves moving goods, and at the same time, helpful to track down stolen items.

      • Anonymous

        As far as I know this was only the case when you want to sell. But not for buying. But then again, it has been a while since I bought something second hand, so things could have changed.

    • http://twitter.com/TriangularRoom Abigail Holden

      Once you’ve signed up, it’s pretty easy in future. Driver’s licence and scribbling down your phone number. No biggie. 

  • Theuberutang

    This will simply increase the all ready large inter gamer trade and sales, that is booming anyway.

  • Anonymous

    Sometimes you can skip the one time pass, I.E Fifa, I didn’t need the code as I dont play multiplayer. However other games like Driver:SF yeah I would use that. So it’s a 50/50 tbh.

    *edit how the hell do you get rid of the annoying bar in the corner?!
    Ok found it but now it’s asking for a survey … ahmygawd ….

  • Aussious

    Its time to hit the underground…

  • http://twitter.com/matthurstrsa Matthew Hurst

    It will just go to Gumtree and everyone loses. This is a typical game theory (pun intended) situation where the best solution is for no one to screw anyone else over and for everyone to work together. Stupid greedy fathead corporates. Making billions and still want more. 

    Didn’t know EA stands for Extreme Assholes.

  • Cyril

    I still don’t get why the games industry is the only one that feels they are effected by this. If second hand sales hurts them, then surly second hand books, for example, should do the same for publishing companies.

    I made the statement once to say that why car makers get no money from second had sales but still support the service plan. Maybe they would like to stop it if they could, but they know they can’t so they make the best of the situation. Also in the price there is budget for 5 services what do they care if it is the first, second or third owner.

    And the same applies for me to on-line play. If a game sells a million copies and there is a million players on-line. What is the difference if one player stop and another takes his place. The will not suddenly have to support a million and one players.

    If all the other industries can create successful second hand markets 
    (cars, books etc.) why do gaming companies still keep crying because they can’t get everything there way. 

    • AfroStalin

      Because the gaming industry is populated with greedy assholes. The only way to teach them a lesson is to pirate.

      #OCCUPYGAMING

  • Anonymous

    Retailer’s absolutely deserve to be in this position, they reaped the profit off of 2nd hand sales, giving nothing to the developer’s who actually MADE the game, and now they’re upset because they can’t steal more money from developer’s pockets.

    I’m absolutely thrilled to see the online pass option screwing with their profit margins.  Always thought it was incredibly shady that these retailers were never giving anything back to the devs.  Pretty underhanded.  That being said, it’s kind of sad that the online pass had to happen in the first place, it would’ve been much nicer to see the retailers play nice with these developers.

    Retailer’s do very little, in the grand scheme of things to put these games together, in fact, they do nothing, they just participate in the media/publicity hype machine.  It makes no sense for them to get so much money from reselling games.

  • Chaosritter

    I stopped buying used recent games when they came up with DRM and DLC, so that doesn’t really affect me. Whatever I play now, I either got it from eBay or Megaupload, fuck paying 50€ for a game that I don’t really own and need to complete by purchasing the stuff they took out right before the gold master hit the pressing plant.

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