EA sees second-hand sales of PS3, Xbox, and Wii games as evil
By Dave Parrack
Most people who own a console, be it a PS3, Xbox 360, or Wii will have purchased a second-hand game in the time they have owned their machine. And there’s nothing wrong with that, unless you’re EA.
I have a huge number of pre-owned games currently in my collection, including games for the PS2, Dreamcast, Gamecube, and GBA as well as the current-gen consoles. When you enter a games store, the biggest section is often dedicated to second hand titles. And while many are of a certain age, there are usually even very recent titles available at a great price.
While most gamers love this freedom to buy games that someone has already played and sold on, it’s obviously a problem for games companies who are already often struggling to make the money spent on development back in sales.
In an interview with GI.biz, Jens Uwe Intat, senior VP and general manager for European publishing at EA, explained how second-hand sales are a “critical situation”. Moreover, Electronic Arts is currently experimenting with various business models designed to put people off buying a pre-owned videogame.
I’d actually make the point that for us second-hand sales is a very critical situation, because people are selling multiple times intellectual property.
What we’re trying to do is build business models that are more and more online-supported with additional services and additional content that you get online. So people will see the value in not just getting that physical disc to play at home alone, but actually playing those games online and paying for them.
I have no problem with games companies offering bonuses for people who buy the game first, or offering extra DLC for a certain price. After all, these systems are still offering a choice to gamers. But what annoys me is EA’s opinion that consumers are somehow cheating the system by buying second-hand games.
Games are apparently different than any of the numerous other items sold second-hand every day of the week in every country in the world.
In our understanding of the business model we are actually giving away the rights to play, and if you just pass it on, pass it on, pass it on, that is not comparable to second-hand sales in the normal physical goods area where you have physical wear-out - second-hand cars, second-hand clothes, second-hand books… they’re all physically wearing out, so you have an inferior quality product.
But digital goods is not actually becoming inferior in quality, so people passing that on is actually very challenging for us.
Fine, but I really don’t see how you’re going to change the habits gamers have had for a lifetime. I remember having a Commodore 64 back in the day, and recording every single one of my friends games on to tapes. While that was piracy, the same principle persists: once a game has been bought once, it’s that person’s property to do with it what they will.
The other problem that EA’s position could create is where physical discs sold at retail could be released with less elements than they should have. Instead, the game’s developers could turn some of it in to DLC and then charge mugs like us extra to purchase and play it. That prospect fills me with dread.
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August 28th, 2008
A decent article and a decent read. Good article Dave. I’m impressed, I didn’t expect such things from you from all the flame bait pieces you admit to writing.
EA is always bitching about such things, and they never cease to give people something to laugh at.
August 28th, 2008
I don’t see how it isn’t “comparable to second-hand sales in the normal physical goods area.” Discs scratch and end up not being read. Every used game I have bought had some scratches on it, some more so than others. Just like a used car might have some scratches on it it still works, but after time, unless you take great care of it, it will wear just as a game disc does.
Oh yeah, lets not even mention that 360’s put a nice ring on discs and make them unreadable if you tilt the damn console while it’s on. There you go EA just put games on the 360 and people will have to buy new ones, even if they’ve already bought it new.
August 29th, 2008
Is EA insane!??? How dare they make such a statement! They ought to be glad anyone even BUYS their games anymore! They’re so full of crap. The best Madden football game I have ever seen or played was Madden 2004. It’s now 2008 and Madden still sucks. Madden 2009 received a lower rating than Madden 2008!!!
……Hey EA, if you want more revenue in sales of your products (games), then start making DECENT and beyond games!
August 29th, 2008
I dont even like EA games. the good games the have is sports and i dont even like to many sport games, but why would i spend $60 on a game that isn’t worth $60 because to game is trash.
August 29th, 2008
@timg: Exactly.
They want me to buy new then they should lower the prices.
I’m going to make an effort to avoid E.A. Games now.
August 29th, 2008
@timg: Exactly.
They want me to buy new then they should lower the prices.
I’m going to make an effort to avoid E.A. Games now.
August 29th, 2008
So I take it that EA just wants to sell their games online eliminating disks?? EA sux, I havent bought any EA game since Army of Two and we all know how much of a flop that turned out to be. So if EA wants us to pay $60 for a game, why dont EA lets us pay the $60 and if we dont like the game, EA can reimburse us the $60 so that I dont have to sell it to Gamestop and have another gamer buy it used. You’re full of crap EA.
August 29th, 2008
EA doesn’t need to tell me used games are evil. THEY ARE. Well not the games themselves but the stores that sell them. Looking at the used game shelf makes me sick…some examples:
Used Juiced 2 @ EB games $29.99 New Juiced 2 @ best buy $19.99 Used blazing angels @ EB games $24.99 New @ Blockbuster $9.99. Newer releases are even worse, they’re only $5 cheaper…why wouldn’t you pay the $5 more for something new. The best is that the poor guy who traded them in probably got a measly $10. Of course the used section is huge, they want you to buy used because they’re profit margin is through the roof. I’m with EA on this, as greedy as they are, the stores selling the games are greedier.
August 29th, 2008
Thats why I sell all my games on ebay, and buy used ones at Gamestop, but I will now check Blockbuster and Best Buy before I go to EB from now on. lol Basically, is good to have “choice” of where to buying and selling my games.
August 29th, 2008
I wonder how many games are in this guys collection? I personally have over 200 on multiple systems. I keep good ones. Maybe if EA made Madden games so you could download the new rosters people would still own Madden 92-2009.
August 29th, 2008
@ Eric……You’re right about one thing. Stores are greedy for money and they could give two shits less about the satisfaction of customers. Because the main goal of any company is “total revenue”.
But I recommend to you guys that you hold on to your “receits”. That’s the only way you can get your money back guaranteed
Without that you’re basically screwed.
August 29th, 2008
DLC is evil, anyway, if you ask me.
When I go buy a game, I want a finished product. I don’t want patches (this is one thing that keeps me from PC gaming for the most part). I don’t want staff added on later. I want your best shot.
If I have to download something, you have failed.
You have also alienated a vast majority of the potential world gamers, who, like it or not, do not have internet access or have internet access so poor as to be unusable for games. Sure these people aren’t as likely to buy the next Madden as your average American who is rich by comparison, but you’re losing potential sales either way.
Looks like EA is stuck between a rock and a hard place. Release something finished with all the bells and whistles and see second hand sales go on, or release an unfinished product that will required DLC to really be playable.
Hopefully EA makes their own console so they could see their ideas crash without making terribly inferior games for other consoles (which become normal inferior EA games with the downloads).
August 30th, 2008
Matt you are a genius!