Monday, December 8, 2008

Retail Unplaying: How Games Sell and Trade at Game Stores- Xbox 360

The gaming industry is like the car industry, some people buy games with older gamers in conjunction with money. Whether or not the game companies like it, this is something that cannot be stopped. There is however, a guide of how successful a game can be and how often your game could get traded in. Obviously the retailers profit off the eventual used games that come in, so this complicates long term success of most games. We first focus on the Xbox 360.

Those who own Xbox 360’s have probably been doing business with these retailers because they succeed from new and used 360 sales the most. Xbox 360 games sell the most on week one. That’s because these games are bought with credit from games bought mere weeks ago. Sales die after a few weeks of a game’s release because of the competition with their own game: the used version. Sadly, 360 customers will pounce on the used versions as soon as they can get their hands on it. Used game sales make the retailer profit and give the game’s actual developer nothing.

Xbox 360 games mostly launch for $59.99, but eventually certain situations make the game drop its price, like losing to preowned games sales. So to battle the used retailers, publishers drop the price to make their sticker price seem more appealing. This also crashes the trade-in value and tries to make gamers lose interest of trading their game in. Though retailers do find ways around that too via trade bonuses and discount cards, like GameStop’s Edge card. There’s the fact that most customers do not care what they get as long as they get something.

There’s some light for the publishers that feel ripped off though. These newer, higher valued 360 games that do get traded in mostly go to new games. These games would have never gotten that sale if it wasn’t for the retailer’s trade program. In the end though, what plays more in this give or take? (Note: At the time of this writing, GameStop did agree that they’ll work with publishers about used games and their profits. Although no one knows what will be achieved out of this.)

Now while I talk about how all 360 games are bought with the blood of game developers, not all Xbox 360 games follow this. It’s a stereotype from the biggest genre on the system- the popular action/sports games. Microsoft has however achieved more variety in its library than its older, fatter console. The Japanese realized Microsoft exists as a console developer and thus started supporting it. Xbox 360 JRPGs, like Tales of Vesperia, are bought to be kept by their owners and aren’t traded in as often and the majority of their audience doesn’t trade in games towards it. Koei’s games, such as Dynasty Warriors 6, doesn’t see massive used figures versus the new sales they achieve either.

Unfortunately most 360 games will see this short-but-bittersweet success method unless every developer started making JRPGs. It’s a trend that has started with the original Xbox, and now that the majority of the hardcore gamer crowd has sided with Microsoft, it has only gotten bigger. Now retailers can have over a hundred copies of a single preowned game on shelves. Publishers should know that people will buy their games, but they need to learn that the idea of cherishing a personal library is nonexistent from their customers. Just be prepared to have your game thrown out like someone after a one night stand... in exchange of another one.

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