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California GameStops Must Post Warnings For Used Games

Don't worry; the boxes won't lie to you anymore. Well, at least not in California.

The latest news involves a settlement Baron and Budd reached with GameStop in the United States District Court for the Northern District of California.

According to the report, the settlement concerns used video games sold by the retailer to consumers who are unable to access downloadable content and online features unless they pay an additional $15. The problem with this is that the packaging of the games always say the DLC is available for free with purchase of the game. Now, GameStop must (for the next two years), post signs on used game shelves and online, "warning consumers that certain downloadable content may require an additional purchase." Seems like a reasonable solution.

Furthermore, consumers will get the chance to recover the $15 they would've had to pay for access to that DLC: Those who purchased "qualifying used games" and are part of the PowerUp Rewards program can receive a $10 check and a $5 coupon. If you purchased a qualifying title but aren't a PowerUp member, you'll receive a $5 check and a $10 coupon. Said Mark Pifko, Baron and Budd attorney and counsel in the lawsuit:

"We are pleased that as a result of this lawsuit, we were able to obtain complete restitution for consumers, with actual money paid out to people who were harmed by GameStop’s conduct. The in-store and online warnings are an important benefit under the settlement as well, because if GameStop discloses the truth to consumers, it is unlikely that they will be able to continue selling used copies of certain games for only $5 less than the price of a new copy. In fact, we already know that not long after the lawsuit was filed, GameStop lowered prices for used copies of many of the game titles identified in the lawsuit."

The lawsuit mentions that GameStop purchases used games from consumers "for only a fraction of the original price, and then sells them to other consumers at a marked-up price, usually around $5 less than the price of a new game, to maximize their profits." This results in over $2 billion/year in used game sales, and they still don't have to pay royalties to game publishers or developers. Yeah, that's still a problem.

Tags: gamestop, online fees, dlc, downloadable content, used games, preowned games

4/10/2012 8:51:42 PM Ben Dutka

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Comments (49 posts)

Highlander
Tuesday, April 10, 2012 @ 9:54:15 PM
Reply

LOL, that's awesome news.

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Highlander
Tuesday, April 10, 2012 @ 10:10:27 PM

Isn't this exactly what Ben, myself, Underdog and one or two others have been saying for a long time now? Why yes, yes it is...

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Ben Dutka PSXE [Administrator]
Tuesday, April 10, 2012 @ 10:44:08 PM

Amazing how GameStop gets a free pass in the used game arguments...well, of course it does; they're saving the consumer money so they must be "good." Even if they're one of those giant corporations just like game publishers that everyone seems to hate.

'rolling eyes'

Last edited by Ben Dutka PSXE on 4/10/2012 10:44:37 PM

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WorldEndsWithMe
Wednesday, April 11, 2012 @ 3:33:36 AM

Gamestop gets less scrutiny because only unwise gamers use them for their used game buying and selling. It's kind of like "Don't talk about your 'slow' cousin".

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Beamboom
Wednesday, April 11, 2012 @ 4:19:17 AM

@High & Ben: It looks as you guys seem to think "used games market" equals "GameStop". It's two *entirely* different discussions, and I haven't seen much love for GameStop anywhere, no matter what their stance is on the used games debate?

But to use one "corporate pig" (to quote Temjin below) as an argument for removal of an entire market is as rational as wanting to ban gaming because some titles are too violent.


Last edited by Beamboom on 4/11/2012 8:01:29 AM

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Phoenix
Wednesday, April 11, 2012 @ 7:51:24 AM

Agree with beamboom, gamestop is only a piece of the used game industry.

lets face it, the used game market only exists because of the consumers, so why do you hate gamestop so much? it's a business that saw an opening and went for it. Do you hate them because they make money? it's a business that's what they all do. Is it because they dont give to the devs on used game sales? they already get a piece of the action when the game is 1st sold. And please, dont even start with the arguement that it could be resold 30 times a month garbage, that just doesnt happen.


Devs/publishers already make quite a bit off of games as it stands, and even more so with the loads of dlc they put out. If they want more new purchases, they really need to raise quality of thier product, get people excited to pick it up on day 1, and stop cutting out game to repackage as dlc. Ofocourse, there will always be people who cant afford new game price tags, or people who just want to save some cash, and they have every right to, but I think the devs/publishers, and some people in the industy, are just looking to point the finger at something, they are in need of something to blame instead of really looking at the bigger problem.

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Temjin001
Wednesday, April 11, 2012 @ 9:17:55 AM

I dislike GameStop not because of their market position, their success is in part only a reflection of the purchasing/selling decisions of their core consumers who have little value of their time, but because they operate at a lower standard than the norm by way of professionalism and they appear to screw you over every chance they get as illustrated by the required act of the justice system to set ther business ethics right. I dislike their leadership and image in the market and Id rather see a more reputable retailer under less swine-like management fill the space, a smaller one, than the business that exists today. See, most businesses go out of business when there's so much consumer dissatisfaction, but GameStop exists on an entirely different means than the norm retailer, thus I see their ethics being totally screwed and cancerous to the rest of retailer practices.

Last edited by Temjin001 on 4/11/2012 9:21:16 AM

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Highlander
Wednesday, April 11, 2012 @ 10:21:13 AM

Beamboom & Phoenix,

Again you defend GameStop, and implicitly defend their conduct through obfuscating their role. No one has said that they are the entire used game market, but with over $2billion in revenue from used games in NA alone, they are a *HUGE* and very significant fraction of the over all sales picture. They also typify the behavior of used game retailers, not individuals, retailers.

Why are you so defensive of Gamestop's role in used game retail when they been found guilty of mistreating their customers specifically with regard to used games?

And Pheonix, devs and publishers only make money of games that sell past the break even point. In the case of a smaller developer where the differnece between profit and loss is 50,000 (or fewer) sales, used game sales can make the difference between losing money and making money on a project.

You seem to imagine that every developer/publisher works like Activision and makes money simply by breathing.

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BikerSaint
Wednesday, April 11, 2012 @ 10:23:27 AM

World,
I use GameStop to my advantage...and I have no 'slow' cousins". LOL

The whole key to dealing with GS is that, you've got to think smart......

Case in point, I'm savvy to GS's ways, so I will never trade in any games what-so-ever to GS(I support my local mom & pop store with any trades), I only buy at GS when at $20 or under "used", or up to $30 during a Buy 2, Get 1 Free" deal(so it still only winds up $20 each.

Or I'll buy new at GS during a huge price-drop sale(just got AC Revelations "NEW from GS for $19,99),

BTW, I've had "Borderlands" in my huge games backlog for quite a while now & I just finally got around to doing a full play-through.

Since I really dug the game, I then checked the PSN for any DLC for it, but I saw it was going to cost me over $30 in to get Borderlands additional "all 4 add-on packs" in one cheaper full package deal(The Zombie Island of DR Ned, Mad Moxxi's Underdome, The Secret Armory of General Knoxx, & Clap-Trap's New Robot Revolution)

But it was still way too expensive right now for me while I'm still collecting only 2/3's of my prior paychecks, through unemployment money now, so once I was all done my regular play-through, I then took my used Borderlands over to GS & swapped it out for a used Borderlands GOTY copy.

And I not only wound up getting all 4 DLC's included on the GOTY for "FREE", they even returned $1.97 back from my original purchase price due to GS's current GOTY priced=drop.

And I have plans over the next couple months to swap out my Batman Arkham Asylum & 4 other games for their GOTY versions


Ahh, always good times for me at GameStop.

Last edited by BikerSaint on 4/11/2012 10:29:52 AM

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Ben Dutka PSXE [Administrator]
Wednesday, April 11, 2012 @ 10:34:32 AM

Beamboom: No. GameStop IS the used game market, especially in the US. I'm not going to go into any more detail than that, but if they were forced to step selling used games, unless some other retailer took up the slack, pre-owned would fall off the map.

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Highlander
Wednesday, April 11, 2012 @ 10:45:22 AM

Ben, do you have access to the NPD market reports for video games? they give quarterly reports on the total dollar value of games (new sales, not used) at retail in NA. It might help people to see the significance of GameStop in this market.

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Ben Dutka PSXE [Administrator]
Wednesday, April 11, 2012 @ 10:51:53 AM

In all honesty, I'm not sure it would do any good. Some people are going to defend their "right" to save money.....wouldn't matter if Satan was the chairman of the corporation and they cloned Judas a thousand times to be a manager of each store.

And Phoenix, a game absolutely WILL sell 30 times a month if you count all the GameStop locations around the world. In fact, a hot game that just released that saw a ton of trade-ins (as they almost ALWAYS do), will see FAR more than 30. You can't defend what GameStop is doing to developers and publishers. You really can't.

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Beamboom
Wednesday, April 11, 2012 @ 11:50:09 AM

Well then let's discuss the business practises of GameStop then, and not the consumers right to trade games!

It's two *entirely* different topics! I do NOT defend GameStop Highlander and you have never found me defending GameStop, not once, ever, so stop telling me what my opinions are cause that's just annoying.

What I defend is my rights as a consumer to let me hand my old games down to my son and his PS3. I defend my right to trade games with my buddies, being able to borrow my colleagues games, and do nice deals on our regional used market website.
That is what I defend. And it is an entirely different discussion. It's about consumer rights.

Want to discuss GameStop? Sure! But I doubt that'll be a long discussion:
I trade IN games at GameStop if I get a good price for them, and I trade them in to buy new games.
I never buy used games at GameStop, never will, and I suggest you all do the same cause there are much better deals to be found elsewhere.

Furthermore I think it is 100% right that the real, final price is informed with a sticker, and that GameStop and any other store include the online pass cost into the deal.
So, there's my contribution to the GameStop topic. Roll discussion! Anyone disagree?


Last edited by Beamboom on 4/11/2012 12:48:48 PM

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WorldEndsWithMe
Wednesday, April 11, 2012 @ 11:57:13 AM

no, gamestop is not the used game market.

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Beamboom
Wednesday, April 11, 2012 @ 2:46:25 PM

Let me just add that I never buy new games at GameStop unless I got some old ones to trade in, simply cause the new games are far too expensive there. That is also an element that should be taken into consideration when all this is discussed. No used trade in at GameStop *will* mean fewer NEW games sold at GameStop too.

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Phoenix
Wednesday, April 11, 2012 @ 8:18:40 PM

Ben you are out of your mind if you think a single copy of a game gets resold 30 times a month, hell I'd wager it prolly doesnt get resold 5 times in it's life.

Yeah, gamestop takes advantage of thier customers, show me a business that doesnt. I dont defend them directly, I almost never shop at eb/gs, and I never sell any of my games, and rarely buy used, and again I dont buy from them if I'm forced to buy used, but I do defend a persons right to have options while shopping. And again highlander, even though it has been said countless times, a used sale doesnt equal a new sale lost.


I really dont understand why you hate on EB/GS, yet you just love the dev/publishers, I hate to break it to you gents, but they are in the same business, to get money our of our wallets and into thiers. EB/GS takes advantage of thier customers, but so do devs/publishers with DLC, overpriced games, and poorly made games that seem to get remade every year. Both only care about money and do just about anything they can to get it, in the case of dev/publishers they'll point the finger at others to come up with a reason why sales are down, and I'm sorry but that is total crap.

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Underdog15
Thursday, April 12, 2012 @ 1:01:06 PM

"wouldn't matter if Satan was the chairman of the corporation and they cloned Judas a thousand times to be a manager of each store."

-AMAZING lol's from me!


I find it absolutely mind-boggling that even now as the courts have found them guilty of mistreating consumers, the consumers, like Phoenix, -STILL- defend them.

Face it... the used game market, which is primarily dominated by gamestop, is hurting the industry... whether a game is resold once or 30 times doesn't matter. The current set up ISN'T WORKING. Keep used sales... fine. Go ahead. But you HAVE to change the way it's designed. It will come to a breaking point. I guarantee it.

To make matters worse, people seem to think every publisher/developer is like Activision making the big bucks. Hey, Phoenix... I hate to break it to you... but 95% of publishers and dev owner, and 99.99999% of their employees... are -NOT- living in extravagant mansions.

And Gamestop CEO's? They are richer than Activision and all other publishers -COMBINED-. They -LITERALLY- get rich off the work of others.

Slow cousin, indeed....

Last edited by Underdog15 on 4/12/2012 1:03:59 PM

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Phoenix
Thursday, April 12, 2012 @ 6:48:43 PM

I hate to break it to you underdog, but they arnt exactly living off of food stamps either.


There is a good reason why sales are down, it's because they arnt making good games anymore. Look at all our big budget titles this gen, now take the ones that had a huge fan base coming from older consoles, now how many of them have stuck to thier roots this gen? pretty small list isnt it. Devs are trying to westernize games, trying to make them more action packed, and pretty much destroying everything that got them there in the 1st place, THIS is why sales are down, not because some1 buys used.

Devs need to stop trying to westernize games, they've gotta stop trying to cash in on the cod sucess by adding in more action into games, and maybe they've gotta take a step back, look at what got them there, and build off of that.

And once again, I dont defend gamestop/ebgames, if they went away tomorrow nothing would change with my buying habbits, I dont do business with them, I infact go out of my way to give business elsewhere.

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richfiles
Sunday, April 15, 2012 @ 9:42:59 AM

Maybe CA Gamestops were being douchy, but the GS I work at in MN has had reduced pricing on online pass afflicted games for so long, I don't even recall when we started doing it. Between Buy 2, Get 1 free deals, and the lower price, we've been pretty OK with customers here. When we have those B2G1 deals going, we often will stop a customer at the register to let them know, that if they look for another game the same or lower price as what they have, they can just pick it up for free.

Different districts have different pricing structures, and I suspect that a lot of you are being influenced by poorer practices in another district, or you are just butthurt over the fact that Gamestop buys games at approximately the same 30% of retail rate that most pawn shops buy at.

Around here, Gamestop is big in the used game market, but if you go to a pawn shop, they are FAR WORSE, yet still have a fair share of preowned sales.

At a local Pawn America and another local Pawn shop, I found PS3 and Xbox 360 systems that had their security seals clearly tampered with (aka, modded or repaired by the user). One PS3 wasn't even properly reassembled, and you could pop off the top plastic panel by hand. I've found game discs in WRETCHED condition.

We examine every system and every disc. At least at the store where I work, we check those security seals, we turn systems away if they aren't in compliance. I look at discs before sale, and if I see a defect, i pull the disc from the drawer and report it as defective. Better than the pawn shops I seen!

People complain about trading at Gamestop... So don't trade! Use ebay or amazon, a garage sale, or craigslist. Sell it to your friend. Look at all the games on Amazon and eBay, and tell me Gamestop is the only major game resaler.

We make a point of offering and at least making customers aware of DLC for their games. We always ask if they intend to play online. We mention the games that require online passes. In my area, we have a lot of rural customers without any access to broadband internet. A lot of them have no internet at all, or still use 56k dialup. I frequently turn away PC gamers with that once simple question... "Do you have high speed internet?" It also lets some of our customers get even better deals on used games. When they answer no, they are basically getting a preowned game for $12-15 off the new price. Adding the discount to used games to cover online passes is not new. Not in my district anyway. A lot of the games here have rung in at $47.99, so they are less of a discount, but they do cover the $9.99 online pass.

You also will never convince me that Devs are hurting due to used sales. Used sales have always existed. The difference is that now, they are selling way more than what they sold a decade ago, and they also have DLC as a profit tool. One used came can sell to 5 different users, and maybe the first and the third get DLC. That's 2 additional revenue sources. You would be surprised at how many people only buy CHEAP games. These are the ones who still persist in holding out for $1.99-9.99 games, and still ask about Original Xboxes and PS2s and such. We still get people coming in asking if we carry N64 and PS1!

I GUARANTEE you... Those people do not represent a lost new sale.

I waited for Duke Nukem to drop to a ridiculously low price to buy it. I don't play shooters anymore, but seeing the price drop to under $10, I bought it for nostalgia's sakes. Duke Nukem 3D was the first game I ever bought for my old Mac. I still haven't touched it. I also NEVER would have bought it new for $60. EVER!!!

Why do devs INSIST that I represent a lost new sale then!?!?!

Stop listening to the corporate big wigs tell you the other corporate big wig is evil. They are ALL in it to get you to hand over as many $$$$ to them as they can convince you to let go of!

Gamestop haters need to get a life...

Or maybe a job even.
We might be hiring in your area! /)ᴖᴗᴖ(\

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Temjin001
Tuesday, April 10, 2012 @ 10:15:33 PM
Reply

Coolness take THAT you corporate Gamestop pigs. I was wondering why newer used games were being sold that knowingly had game passes for only $5 less than new. You would literally pay more to buy it used then get the game pass.

Leave it to GameStop to lower the standards of common business to consumer relationships by not only selling you opened games without manuals as new but also waiting for the judiciary to make them do what should've already been done.
I feel it every time, when I walk into a GameStop, standards are lower than any other corporate retailer I've ever visited.
It's as if they know that the majority of their best customers who need their obsessive fix, whether or not $30 goes down the drain within a 2 week turnover, are gullible idiots

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BikerSaint
Tuesday, April 10, 2012 @ 10:17:12 PM
Reply

And I believe that ruling is also causing GS to do this with other states now too, cause I just got a few some used games during GS's "Buy 2 used, Get 1 Free" deal last week, & I was also given a free in-store code for Batman:Arkham City after I bought it.

Plus, over the last 2 months I've also been given in-store free codes for some other used games I purchased too.

So here's a heads-up for everyone.....

If you do buy any used game from GS that says there's any extra's on the box cover art, then make sure to double-check your receipt because that where & how GS is putting these new free game codes.

Last edited by BikerSaint on 4/10/2012 10:19:13 PM

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Highlander
Tuesday, April 10, 2012 @ 10:20:14 PM

If they do it in one state and online, I'm fairly certain that they better do it across the US, or else face another law suit under the Interstate commerce laws...

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BikerSaint
Tuesday, April 10, 2012 @ 10:48:41 PM

Highlander,

Agreed.
And usually a judge's ruling(and unless struck down by an appellate, state, or supreme court), then that ruling stays & winds up being used everywhere else.

BTW, by my own observations, GS had to have surmised that the judge was going to rule in favor of the plaintiffs instead of GS months ago, just because I started getting those free on-receipt codes approximately 2 months ago.

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Nerull
Wednesday, April 11, 2012 @ 1:54:12 AM
Reply

it's a good outcome, but it's still the consumers' fault for getting used games there in the first place. if less people bought into the whole "8% savings for 2nd hand is somehow a good deal" bandwagon GS would actually have to change on their own.

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BikerSaint
Wednesday, April 11, 2012 @ 10:39:57 AM

Nerull,

FYI, I get no less than a 40% saving's each & every single time I buy anything "used" at GameStop.

Plus I get another 10% coming right off my total, just by using my PowerUp-Plus Rewards Card.

And even after all that's done, I'll then go and use my reward points to print out $10, $20, $25, & $50 off coupons for even cheaper games on my next visit.

"Just gotta think smart, is all"

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richfiles
Sunday, April 15, 2012 @ 9:53:48 AM

LOL! I super ranted above and I totally forgot to mention the 10% PowerUp Reward card, or the coupons! I'm such a bad employee! LOLOL!!!

Yeah, I can't even remember when my store started price dropping online pass games and adding stickers to cover free DLC bits. I know that the manager who was in charge then, as well as the DM were doing it preemptively because they were worried that what is apparently going on in CA would eventually happen, and they didn't want to be caught up in it.

Not sure how many districts were actually wise enough to do that.

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WorldEndsWithMe
Wednesday, April 11, 2012 @ 3:31:51 AM
Reply

Seems reasonable: make sure dumb people know what a purchase means.

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___________
Wednesday, April 11, 2012 @ 6:07:17 AM
Reply

its a bit stupid people should know DLC codes are 1 use only so if the games used then chances are the DLC is too!
eh, whatever.
i hate EB though there CONSTANTLY selling used games as brand new!
i bought ninja gaiden 2 yesterday brand new from them, got it home to find the 360 seal broken and the game scratched to hell!
hows it brand new if the case has been opened and the disk damaged?
EBs lucky i dont have the time nor money to file a lawsuit!

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BikerSaint
Wednesday, April 11, 2012 @ 10:44:24 AM

Shame on you for not double-checking anything you buy from EB/GS, right at their own counter "BEFORE" you hand over your money.

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___________
Wednesday, April 11, 2012 @ 6:22:03 AM
Reply

a bit worrying to see $ony preparing to report a 6.4 billion dollar loss this past FY too!
bit of a worry, and 100 jobs lost.
hmmmmmmmm, i wonder why there in this mess.....................
could it have something to do with treating their fans like sh*t, nickel and dimming everything, and removing your god given legal rights?
just a hunch.........

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cthulhu_spawn
Wednesday, April 11, 2012 @ 9:50:54 AM

Sorry to burst your bubble dude, but the main reason sony is losing money is due to a nose-dive in sales of tv's, dvd's, blue-ray players etc due to massive competition in those markets. The gaming division seems to be doing very well given the current world-wide economic cluster-fuck going on

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Highlander
Wednesday, April 11, 2012 @ 10:22:55 AM

Actually the main reason for the loss is a truly huge Tax write off/adjustment. The TV nosedive certainly did not help, but Sony took an extraordinary accounting loss related to deferred tax credits. The numbers look way, way, worse than they actually are.

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cthulhu_spawn
Wednesday, April 11, 2012 @ 11:03:40 AM

Cheers for the correction Highlander :-) That's why i love the guys on this site, i'm always learning :-)

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Beamboom
Wednesday, April 11, 2012 @ 12:12:26 PM

I suggest you do some googling on the topic on your own, Chtulhu, but it's definitely not as simple as being mostly just a tax write off. They don't return bonuses, assign a new boss (the former head of the Playstation division!) and fire 10.000 employees because of a tax write off.

But don't trust me either - go check out some of the serious economy/news/analyst sites that cover this story and get an overview yourself. It's in all media now and Google is your friend.

The good thing is that it is not the Playstation division we talk about here so I doubt this means much for the PS. They have severe problems on the camera, music and tv divisions though. And that's a pretty darn large share of what Sony is built on.


Last edited by Beamboom on 4/11/2012 12:38:18 PM

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Highlander
Wednesday, April 11, 2012 @ 1:25:03 PM

Beamboom,

The tax right off basically doubled (at least) the apparent losses - from what I read. The TV division is making large losses, rather like the TV division at Sharp is making large losses. this is due to several factors not least of which are the erosion of prices in the commodity HDTV market, increased competition from manufacturers with a lower cost manufacturing base (aka the Chinese and the Korean conglomerates that receive government subsidies), and terrible market conditions putting further pressure on prices. Samsung (Korean conglomerate) has spun off it's LCD TV business because profits were falling rapidly and they are now focusing on higher margin devices such as OLED screens. Sony has made some similar moves, funnily enough they sold their stake in a joint venture to make lower cost LCDTVs with Samsung, to Samsung in late December, two months before Samsung announced it was spinning off it's LCDTV business. Sony are outsourcing their LCD manufacture to lower cost sources. It might interest you to know that Samsung's HDTV business unit lost something like $700 million last year.

Basically it sucks to be in the LCDTV business.

Last edited by Highlander on 4/11/2012 1:27:05 PM

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Beamboom
Wednesday, April 11, 2012 @ 1:59:23 PM

That is true, according to a BBC news business report last night their television business has lost money for eight years straight now (chew on that number for a while... EIGHT years? That's almost a decade, and long before the recession!).

As you know they've now had to *double* their estimated losses for this year, who will be their fourth year in losses for the company. So this is most definitely serious problems. I believe the official explanation about taxes should just be considered as a means to avoid damage on the share prices. Basically, when a company reports losses the *least* interesting explanation is the official statement.

It's also worth noting that another Japanese company, Sharp, struggle hard too. And the strong Yen doesn't help their exports either.

Well, don't blame me cause I've done my share. I got a Sony phone, console, tv and surround system. ;)

But! It's often desperate times who foster new ideas and creativity. So from us gamers perspective (an egocentric view, I know) I think good things might come out of this. From a gamers perspective.


Last edited by Beamboom on 4/11/2012 2:13:50 PM

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Highlander
Wednesday, April 11, 2012 @ 2:13:50 PM

Personally, I think Sony and others should exit the commodity TV markets at warp speed. Sony in particular has always been in that upper echelon space where they bring higher quality and innovation, and can actually charge a premium price for a premium product. As soon as things start to go mass market, Sony should be licensing their technology, and letting the low cost producers pay the fees and take the chances of producing products with razor thin margins.

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Beamboom
Wednesday, April 11, 2012 @ 2:25:47 PM

Not sure how lucrative that can be if the margins are too razor thin as they are... Not sure at all.

I really do love my Bravia though. It's by far the best TV I've ever had. Plus I love how the stereo, tv and ps3 work together via hdmi so that the TV remote works to navigate in the PS3 XMB menus and while playing movies. It's not a perfect system, far from it, but it's really, really handy as it is.

In that discussion yesterday I referred to in my other post here (BBC World Business Report, a really good podcast) and they asked an analyst what Sony should do and he answered, "Innovate, innovate, innovate. That's what they need to get back to. They've fallen behind, they need to get back on the front. The market has changed and they have not followed those shifts", and used one example, "noone buys camcorders anymore".


Last edited by Beamboom on 4/11/2012 2:41:06 PM

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slugga_status
Wednesday, April 11, 2012 @ 9:14:43 AM
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This actually seems like a win-win situation if I'm looking at this correctly. So let me make sure I get this..If you buy a used game from GS and it requires additional purchase for dlc or online pass, a power up member gets $10 check and $5 coupon and the reverse for non-power up members..

That being said..it seems that GS is basically paying for the Online Pass or DLC. If that's the case it certainly works out for devs and GS. Plus the consumer doesn't necessarily come out of pocket for those additional fees. Unless that isn't how it works, seems like a win on all sides..

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Highlander
Wednesday, April 11, 2012 @ 10:33:40 AM

Gamestop eating the cost of the DLC and online pass seems fair since they want to sell the game at such an inflated price as if it were as good as new. Tell me how many other media products sold to consumers retail used for 8% off the new price...

On a typical transaction with a recently released game Gamestop makes their retail margin on the new sale. Then they give the gamer perhaps $25 for the game in trade-in value, and then turn around and resell the game for $55. Clear profit of approximately $30. By forcing them to eat the cost of the online pass Gamestop now can only clear $20. Alternately they could sell the used game for $45 or less in order to reflect the fact that the consumer buying used will have to purchase an online pass. Either way, this seems like a fair and natural solution to the problem.

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slugga_status
Wednesday, April 11, 2012 @ 10:42:33 AM

Exactly. So news like this should be celebrated by everyone. The consumer gets better pricing for used games at GS and/or compensation for said Online Passes and DLC. GS can still sell used games and make some form of profit and the devs see some cash back as well. Better yet the cash the devs could receive comes right out of GS pockets.

I think this is a proper action to take toward this ongoing issue. Not necessarily the answer or end all be all but certainly a great solution.

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Highlander
Wednesday, April 11, 2012 @ 10:49:27 AM

Definitely. One of the most disturbing things I have seen in this particular retail sector is the spectacle of GS (in particular) turning over the same copy of a game several times during the first 3 months after a game launches. So from a single new sale copy, Gamestop reaps 2, 3 or more used sales on the same copy of the game. Of course GS gives less in trade value for the trading of a used copy of a game as well, maximizing their margin. That kind of thing really starts to skew the numbers hugely in GS favor.

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slugga_status
Wednesday, April 11, 2012 @ 12:45:04 PM

You know..I don't see how I failed to even realize that in regards to previous discussions about this issue. When you look at it like that I completely understand where yourself and Ben are coming from.

As you know I'm strongly for consumer rights. I do not agree with the practices of GS. The lines get blurred there as the discussion gets closer to the core issue. I don't think we'll ever see a median in regards to that. But this ruling is a positive step for all. Hopefully people will understand and be able to differentiate consumer rights and bad business practices.

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___________
Wednesday, April 11, 2012 @ 9:24:32 AM
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sorry correction 10000 jobs!

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Highlander
Wednesday, April 11, 2012 @ 10:27:55 AM

They also made all their execs give back their bonuses and such.

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anjpikapp3
Wednesday, April 11, 2012 @ 1:08:19 PM
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AWESOME! One step closer to (Game Stop) being charged a royalty fee to developers for selling used games.

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Neo_Aeon666
Wednesday, April 11, 2012 @ 5:37:32 PM
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Did you guys know most of the people who buy used games do it to actually buy a NEW one?

Sure the used market hurts but it also brings sales. Its a give and take thing. Thanks to it people can keep buying all those expensive games... Yes they lose in the process but it keeps them buying. They trade 2 for a new one and the likes...

The used game market is good. Good for clients that want to get some money for games instead of letting their old games rot on the shelves and also good for DEVs since with that used game money they are most likely going to get a NEW game.

Yes it also makes them lose sales to some cheaper people who buy the game used for less... But some of those people would simply not even buy a game if not used and cheap (I get alot of those clients. And I am not talking about those used games that go 5$ under the new one... They wait for used games to drop to 19.99 while the new is still 39.99)

Anyway if they remove the used game market, the DEVS need to give a bigger cut of $$ to the retailer aswell. Heck they only make about 5$ a game... How is that supposed to keep a business going? Console? They are literally sold at cost price. So unless the Devs plan on giving a bigger cut to retail stores they better just stop crying because there are also good points about used gaming.

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Raze22
Wednesday, April 11, 2012 @ 9:39:21 PM
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I said it once and I shall say it again, but in a different manner. Why do publishers and developers go through gamestop to sell their games if they know they are being screwed in the bum? It's in a "in your face manner" TOO!!! I would think they make a lot more money.

I don't like giving my games to gs either bikersaint.

There has to be a decent way to balance out the new and used markets in the video game industry. Out of all the industries I hear the most about getting financially hurt it seems like it is only video games. Or some are just putting blame were it doesn't go (I kind of half-heartedly say this).


By the way I buy used, new, preorder, and not from the same retailer. I get download content also and would like to have all my buying options including a physical disc even though digital only won't steer me away from it depending on the title. I like the reward programs and preorder incentives (something physical usually.)
Online pass puts a hanker in stuff sometimes and makes me just skip the game. Dlc is fine when done right. Great example is kingdom of amalur and bad example is burnout paradise <------ chopped up like bloody hell!

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saintaqua
Thursday, April 12, 2012 @ 12:53:23 PM
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I live on the East coast and most people here realize if you buy it used the codes will be used too.

I don't have a problem with it as long as the mark down makes up the difference.

Here are my reasons for shopping at GameStop and buying used:
1. The seven day money back thing. I have yet to find a "Mom and Pop" store that offers this.
Heck, many won't even let you see the disc before you buy!
2.The prices are usually the same or less than Mom and Pop stores!

I am not defending all of their practices, but I do not think they are the major problem in the game industry.

Do you know how sick I am of buying $60 games new that I hate? And reviews are not always helpful. Soul Calibur V was horrible, it felt not even half finished and it sixty bucks. What a mistake. If I'd bought it used I'd not have had that problem. I could have swapped it no problem.
If used games go away I will be buying far less games unless the publishers start cutting prices big time.

In other words, sure, GS may only charge 5-10 bucks less on a used game but I have the comfort of knowing I can return it. (At least once.)

If a better alternative comes along (and no, Amazon is just as bad) let us know.

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