Sony and Microsoft rumoured to restrict used games. Blasphemy? Not even close...

 I know I haven't kept up with the blog much lately, but with good reasons (moving, doctor visits, work, you know...life......................) But there's one topic I feel that needs to be addressed, and though not completely major to some, it's a perspective that needs to be looked at carefully.

 

So... Next gen consoles are (rumored) to be restricting used games you say? 

Good.

Think I'm an ass for thinking that? look at it this way, currently new games are running at $60 a pop, compared to $30-40 from a few years ago. why? used game stores (i.e Gamestop, Just Press Play, etc.)... Why is this significant? prepare to be learned.

We'll use Gamestop as an example (seeing how they're the most popular/widespread). Notice that Gamestop keeps their new games section limited and small. They make a maximum of $0.89 profit on new games, so why go big on it? Say you beat a game and don't wanna keep it anymore (or whatever reason), so you decide to trade it in. Gamestop gives you, say, $15 for it, right? They then turn around and slap a $40 price tag on it, and then advertise it used for $40 vs new for $60. great deal isnt it? not how you think though. Gamestop just made ~120% profit and the developers of the game didn't see a penny.

Look at it from a developer's POV for a sec. On average, 1-out-of-3 games that are developed today actually support the developers. What do Imean by that? Developers only profit from 1/3 or less of the actual number of game sales for 1 individual game. Now, imagine 500,000 total copies of a game are sold in a year. It's safe to assume that approximately 160,000 were sold as new copies. At $60 per game, developers only saw $9,600,000 instead of what should have been $30,000,000. think $9,600,000 is enough though? with payroll, equipment, publishing fees, etc, youre looking at a roughly $25 Million budget, and just lost money. ($16,400,000 loss in this case over the course of a year... idc who you are, $16,400,000 is A LOT...) This bit of info, btw, is exactly why THQ went under, Nintendo cut the "Nintendo Power" classic magazine, Capcom has been cutting close to bankruptcy, Square-Enix has been treading carefully and spent almost 3 years staying silent, and also why you constantly see so many DLCs for games now, including Mass Effect 3's infamous release-day DLC...

Now look at it another way. over time, developers regain profit, and once again can afford to make quality games again. $60 for new games suddenly become $40 again (or about $45 to adjust for inflation, but whatever) and games are once again worth the price tag.

Now, where does that leave us, the consumers, in this console war? Do we upgrade to the Playstation 4 or Xbox "720" (or whatever they're gonna call it) and bite the bullet on the price of a new system with the restrictions? Abso-fucking-lutely... And besides what I have listed above, look at a real-world (outside of gaming) perspective on this.

According to Forbes in 2009 (I believe that's the year anyway), the video game industry has a decent impact on the world's economy (similar to how smartphones have an impact on it) due to worldwide trading from major publishers. Just remember, in that regard, that not every company is from one country/location. Like Bethesda Studios (Dishonored, Fallout 3, Skyrim, etc) is based out of Bethesda, Maryland, USA. Square-Enix Ltd. (Final Fantasy series, Kingdom Hearts, etc.) and Capcom Co. Ltd. (Devil May Cry, Resident Evil, Street Fighter, Lost Planet, etc.) are based out of Tokyo, Japan. And Electronic Arts, Inc. (EA Sports/EA Games) (Madden NFL series, FIFA series, Crysis, Mass Effect, etc.) is actually based out of 2 locations, Redwood City, California, USA and Montreal, Quebec, Canada. Just to name a few.

Keeping that in mind, it's no wonder why the global economy relies in part of the video game industry (obviously among PLENTY of other industries, but it's still a good portion) to help level out the economy, and this is a step towards recovery. Don't get me wrong, it's FAR from an overnight effect, but just remember that everything takes time for both an adjustment period and a financial effect. This is a step in the right direction, assuming consumers/gamers (such as myself) don't try to counter it too much, because otherwise, things will begin to backfire and nobody neither side will benefit at all.

Is it a risky move on Sony and Microsoft's part? No question. 

Is it a small (maybe even microscopic) effect on both local and global economic recovery? Absolutely.

But just remember one major thing, and it's something that most Americans fail to realize on a consistent basis... Every small step counts. If, for a political example, 75% or more Americans want the president out of office for whatever reason, they can do that. All it takes is a phone call, and your opinion will be counted. Once enough people make that call, then it will go to the government, and action will follow. HOWEVER, many, if not most, will shrug it off and think something along the lines of "eh, I think we need a new president, cause this one is screwing things up, but I'm sure other people will make a stand or something and change will happen, so it's all good..." (aka, not doing anything because they think that other people will do it instead so their "tiny little voice" wont make a difference...) and it doesn't work that way. Why? It's more or less like an ant colony. If you see just a couple ants walking by, it's just...eh...whatever... but when you see a whole army of ants coming towards you, you pack up your picnic and get the fuck out of there... In this case, it's not just one or 2 voices that speak out, it's an entire fleet of voices that they would be worried about.

 Now that we've gone a bit off topic, lets bring it back to the gaming industry.

 Put the political example into play here. Yes, you could switch the government with Sony and/or Microsoft and still have the same thing play out, but in this case, again, remember when I said that it would backfire on both sides simultaneously. Sony loses millions, Microsoft loses millions, and remember, both companies don't focus ONLY on video games... Sony Entertainment (which is also responsible for several major movies and movie studios, as well as media equipment for both residential and big/small businesses) would suffer all around if that were to happen, and Microsoft (who obviously runs Windows operating systems, which you're probably using right now to read this blog, among other services such as Windows Phone 7 and 8, Microsoft Office programs for all businesses, as well as supporting colleges, universities, and other post-secondary institutions) would take a decent hit as well. 

At this point, I do have to say a few things. 1) No, I don't work for, or in any way affiliate with either company... 2) I'm not saying to buy either system if you don't actually want them... However, I am saying that if you refuse to get either system for the sole reason of restriscting used games, then 1) you're kind've an idiot, and 2) you have to look at it from every angle. So it might make a decent dent in your wallet, alright, THAT I understand more than you might think, but look at it long term.

 Also look at the past. I mentioned earlier that games used to be about $40-50 just a few years ago. Why? For one, the economy didn't fucking suck so bad... But for 2, companies could afford it. People were going out and buying new over used more often then they are now for whatever reason they had. Now, Gamestop's stock alone jumped up by about 10% within one year around 2010, then leaped another 20% over the course of 2011. As of 2012 and so far in 2013, it's dropped back to normal from the rumors, and they adapted smart phones and Apple *gags* products, which goes against what Gamestop stood for for all these years. Gamestop refuses to sell any next-gen games if this gets implimented for the new systems, and it further proves that Gamestop doesn't actually want any new games anymore. Just Press Play though, for example, will gladly sell next-gen games though, and don't resort to going outside of video games. So this actually opens another idea. Will this open the door for new video game based companies? Maybe, and not only would that idea create new jobs, but it would also add to supporting more small businesses, thus expanding even more down the road. 

Even if all this didn't make much sense to you, just leave with this in mind: There are MUCH greater benefits down the road if/when Sony and/or Microsoft impliment the restrictions on used games. Would this ban all used games? nope. But there will be a fee of some sort to access a used game. This not only benefits the developers and the publishing companies, thus benefiting the gamers themselves, but it also adds an extra step towards piracy, which has lately become a significant issue in the industry itself. All I'm saying, in a nutshell, is to give it hope, and don't completely count it out. There's always a reason a method behind a company's madness, and in this case, it's to benefit all sides of the equation. Now get back out there and game your ass off!    

 

 

 

 

(Tags: Sony, Microsoft, Play, Station, Playstation, 3, 4, 360, 720, Xbox, used, games, video, gaming, game, gamestop, just, press, play, new, restrict, ban, ps3, ps4)