HMV UK & Ireland CEO and MD, Simon Fox, has voiced his support for the pre-owned market, suggesting that the ‘vast majority ‘of trade-ins allow gamers to purchase a new title. Mr. Fox said he understood publishers’ views on the pre-owned market but became the first ‘industry’ person to say what we’ve all been thinking:
“The fact is, in every case, the manufacturer of whatever it might be makes their profit from the original sale, transfers the IP or ownership to the buyer – and if the buyer then chooses to sell that item, it’s up to them. You don’t hear book publishers asking for a share of the second-hand book market. I’ve never heard that.”
“I think it’s slightly odd that publishers should somehow think that they have a claim to profit that a customer might make on a second sale.”
Mr. Fox said that HMV try and provide trade in offers which promote purchasing another game rather than sellers taking the cash. The pre-owned market has also helped HMV compete with price slashing supermarkets.
“By providing a trade-in offer on a new release you can make that new release affordable, perhaps even cheaper than the supermarket price – but it’s part of a deal. They bring something back, and in exchange they can have the latest product at a very competitive price.”
Source: GamesIndustryBiz
hazelam
this is what i’ve been saying for ages, i bet many publishers, especially ea, benefit more from trade ins than they ever lose, if they can be considered to be losing anything at all.
how many of their roster updates sell because people traded in the old version?
how many games are sold because they’re sold for less than the rrp because preowned sales allow stores to cut into their profits to sell the games cheaper than rrp?
publishers have a very narrow view when it comes to preowned sales.
colmshan1990
You know, I wonder how long it will be until publisher’s try to actually get into the pre-owned market? I mean, actually buying and selling pre-owned games?
If some online retailers and eBay can do it, why can’t Activision and EA? Then customers would save money, and publishers get their cut of the resale.
A true win-win situation.
Peter Rushton
if i can trade in games and get good discounts on new games, then colour me in!
skibadee
man is speaking sense.