Take-Two Grumbles About Used Games

***wraggster*** · January 30th, 2009, 22:32

Take-Two Games, publisher of such mega-hits as Grand Theft Auto IV and BioShock, is increasingly unhappy with the healthy used videogame market, which it says is eating away at its bottom line.

That's according to industry analyst Doug Creutz, who met with Take-Two CEO Ben Feder this week. Creutz then spoke with videogame business Web site GamesIndustry.biz about Feder's concerns.

"GameStop continues to aggressively push their used game business, which is having a meaningful negative impact on sales of new games," Creutz told the site. "Management is frustrated with this trend and is examining ways to ameliorate the problem, which includes strategies around online play and downloadable content which extend the lifespan of AAA titles."

Take-Two recently helped extend the life of its latest title in the flagship GTA franchise by dating the release of The Lost and the Damned, a substantive chunk of downloadable content for GTA IV.

Used game sales were healthy before the economic downturn, but consumers are increasingly turning to specialty retailers like GameStop and Game Crazy for pre-owned games in an effort to save money. This month GameStop reported that it expects to sell $2 billion worth of used games by the end of its 2008-2009 fiscal year, which represents 23 percent of the retailers revenue. That's a $1.6 billion increase over last year.

http://uk.psp.ign.com/articles/949/949217p1.html

**juiceface** · January 30th, 2009, 23:09

sounds like they need to call the waaaaaahhhhhambulance

**jungletek** · January 30th, 2009, 23:11

Boo-frigging-hoo.

No sympathy for those whining about money. You have less profits because the consumer has less money to spend. Why is this hard to understand?
Also, how do they think they have any rights to secondary (used) game sales? The only problem I have with the used game market, in regards to Gamestop etc., is that they give you a horrible trade-in value, and then charge way more than if you'd bought it from a private party. This, of course, if their 'lock-in', and it sucks. But until people refuse to play their game, this is how it will be for the foreseeable future.

**Uberman** · January 31st, 2009, 03:00

No sympathy here either. It's software, which means that the price of the box + disc is only a few dollars. If the price of a new game wasn't so frickin' expensive, the used game market might not be doing such a hot business. Lower the price by $10 or $20 and watch your new-game sales go up, and the aftermarket exchange decrease. Simple economics.

However, I'm sure they wouldn't want to discuss that.

**jungletek** · January 31st, 2009, 03:43

Originally Posted by Uberman

No sympathy here either. It's software, which means that the price of the box + disc is only a few dollars. If the price of a new game wasn't so frickin' expensive, the used game market might not be doing such a hot business. Lower the price by $10 or $20 and watch your new-game sales go up, and the aftermarket exchange decrease. Simple economics.

However, I'm sure they wouldn't want to discuss that.

Granted, there are development costs, etc., but I think you're right. If devs and pubs bring down the retail price by 15-25%, it would put a serious dent in the used game market, and make such stores that take advantage of it perhaps reconsider whether it's worth it to them.

But still, I have a feeling that too much money goes to management for luxury trinkets, and is spent on DRM and other bull$#@! to antagonize the customer... when it probably should be spent on quality control, etc.

**apex05** · January 31st, 2009, 05:10

I can't see them dropping the game prices, because games have a very short sellable life, a few months at full price and a few years in bargain bin, unlike videos and music which never gets outdated, and devs don't have to spend a lot to make a profitable game, i mean for the price of GTA IV nintendo could probably make another 10 really good games and probably make 15 times the profit

**Veskgar** · January 31st, 2009, 13:37

Its been my experience that used games at GameStop aren't even that affordable. We're talking like maybe a $5.00 difference between new and used with a lot of games. I always buy new at GameStop. Even when it comes to accessories. Most people don't take that great of care with their things anyways. Don't want their sloppy seconds.

**RV2006** · January 31st, 2009, 16:09

The way i see it, this economic problem has caused people to maybe buy second hand more, and maybe sell some games of, but
used games have always been a threat to companies like Take-Two, because its always been a great way for gamers to rate games.

Take-Two are probably worried about long term sales because a lot of their games end up in the used section.
From my experience I have been cautious to buy a game if I see a lot of used copies.
A real gamer looks to see which games give you the best bang for buck, and if they see alot of copies in the preowned section, they will question if their going to get thier money's worth if they buy it new.

Take-Two's problem is not the quality of its games, but the fact that people drive to complete them so quickly that they run out of things to do and ditch them...
Theirs no longetivity in their games, no change. I've played Dragon Warrior Monsters again and again, as I can complete it in so many ways, different combinations of monsters.

DRM is NOT the answer. Especially if there is no reward for staying loyal to the game...
Thats why I like DLC more, it doesn't punish gamers, but personally, its not much better.
In general terms, DLC is way overpriced now, and alot less games are offering it for free.

Little big Planet is a good example of how to do DLC. The free costumes are a nice gesture, and the free sharing of levels gives the game a great potential long-term following, and the expansion content gives the player the opportunity to support the developers while increasing the tools available, but it does not punish other gamers or create an exclusive club. People without the metal gear pack can still play metal gear levels, (at least I think you can... might need to check that...),so you can still share your ideas with your friends!

**mike_jmg** · January 31st, 2009, 17:08

To Take-Two

If you're whining about it so much then put your own stupid game trading store and quit complaining

Once bought the games aren't yours anymore, why is that so damn difficult to understand? I could set them on fire If I want to, why should you care?

**goshogun1** · January 31st, 2009, 18:49

LOL, makers of one of the greatest selling games of all time is bothered by the sale of used games? I mean, how many new copies did they already sell.

I hope they don't lobby for EB to stop or something stupid like that. ie: EB can't sell used Take-Two games so says us. Or something dumb like that.

I guess all they can do is whine now anyway.