Michael Pachter, analyst and all round videogames industry celebrity, has urged Sony and Microsoft to consider the impact that locking out pre-owned software will have.
Both the PS4 and the next Xbox could potential limit the use of second hand games on the consoles, with rumours circulating for months that some kind of tagging device (and an internet connection) would mean the death of the used game market.
Speaking on the latest Pach Attack, the Wedbush analyst said that the industry would “disintegrate” if this was to happen. “I think there will be no more videogames if next-gen consoles don’t support used games,” he said.
“You hear that, Sony and Microsoft? You have to support used games.”
He also laughed off claims from some publishers that pre-owned sales eat up a large chunk of potential profits. “What does it actually cost if people trade in used games and some people buy used games instead of new games?” he asked. “My guess is 5% of software sales, probably.”
He says that the majority of a game’s sales happen in the first three months, and although around 40% of games are traded, they’re not done so quickly enough to really make much of an impact.
“So what’s the cannibalization? I’d say probably 5%. I’d say about 5% of the time somebody buys a used game instead of a new game, that costs the publisher a new sale.”
Via TVGB.
Pesico
Oh my. This can only mean one thing…
Cutter.T
Honestly, I don’t get why publishers just remove convenience for the consumer. Its been shown time and time again, the more convenient the product, the more successful it will eventually become.
bmg_123
And that, in a nutshell, is why the games industry is failing.
Uhyve
And why piracy is sky-rocketing.
MrTwP
Thank god the video game industry has Pachter
Sympo
Erm what about Nintendo? talk about bias, now its time he Pach’d his bags.
Forrest_01
I don’t think there have been any rumours that the ‘wii U’ will lock out preowned have there?
I suspect thats why his comments weren’t also directed at ninty.
Faulker
If it weren’t for used games, I would have never played Folklore or Brutal Legend amongst some other games that are no longer available in stores. (or if they, by some miracle, are still on a shelf, the price is so high you can get two newer games from it)
a inferior race
I bought Brutal Legend new for about £8 last week
Crocadillian
This feels almost like the, ‘news’ published on what the name for next-gen consoles will be -____-
lewis
I work for a small independent game store. Last time I checked, the distributor we use to source our games don’t accept games as payment, but we do! Many gamers can only afford new games by trading in. Take the ability to trade and you can kiss 1/4 of your first weekend sales good bye. It’s we as a retailer that take the risk on trades. Not the distributor or publisher. We have to then sell on the pre-owned games for cash, if we are lucky, in order to purchase our next new release! It’s a fine balancing act for video games retail. Look at what’s been going on recently with GAME and Gamestation. The majority of the sentiment from publishers is anti bricks and mortar. which will lead to fewer jobs and more profits for the likes of Bobby Kotick. The games industry needs to make a U turn with all the online codes and anti pre-owned remarks. Or we will be left in app land. Playing games with a sheet of glass. And no “Gamer” wants that.
mrfodder
Does anyone else hear birds in their heads?
Adiemus
Aye it’s odd, whenever I hear or read his name.
TSBonyman
I’m going to wait and see what happens and in the meantime enjoy the time i have left with my current console.
JesseDeya
This whole story (rumour) is f’n ridiculous and Patchter is just cashing in on the hype.
Everyone knows that locking out second hand sales would be a death knell for whomever tries it. Neither Sony nor MS have hinted or confirmed in anything close to and official way that it’s even a possibility. In fact, Jack Tretton (CEO SCEA) went on record saying he thought it was a stupid idea!
Patchter is only saying this now so when the inevitable happens (2nd hand games aren’t locked out) he can say “Well I’m glad Sony and MS listened to me and changed their minds”. I also think his “guess” (isn’t everything he says a guess?) of 5% is way of the mark – but that changes nothing, MS/Sony/Ninty cannot afford the public rage that would follow a decision to lock out 2nd hand games. It’s not just sales after all, but it completely removes the ability to lend a game to your friends, or take a disc around to a mates house.