Article written by Alex C.
Published on 21/05/2012 at 10:36 PM.
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.”