Is Blocking Used Games 'Anti-Consumer'?

by Gaetano Prestia Featured 7 Comments 19 Votes 1786 Views 15/05/2012 Back to Articles

"For the record, I'm totally opposed to blocking used games. I think it is great for the consumer that they can buy those. We have a customer that buys our console late in the cycle, pays less and is looking for value-priced games. I think it would be anti-consumer for us to do that." - Jack Tretton, Sony Computer Entertainment of America CEO.

Mr Tretton's comments are especially poetic, particularly engrossing, and certainly pleasing as a gamer. The notion that used games are “anti-consumer” hits pretty close to home, and paints an engaging rhetoric that is obviously kind to buyers of Mr Tretton’s company’s products.

However, I’m not entirely convinced. I’m not surprised by his comments, but I don’t believe there is as strong a genuine care for the consumer as we might be made to believe, at least when compared to the prospect of a growing digital retail landscape.

Is Mr Tretton’s commentary truly indicative of consumer support, or is there just not enough drive of digital growth to truly justify the ending of retail’s most profitable business: pre-owned games?

Let’s say hypothetically that next-generation consoles completely blocked out used-games. Considering that retailers like EB Games rely almost exclusively on the sale (and exuberant mark-up) of pre-owned games, it would be a devastating blow to an industry already reeling from a seemingly broken business model.

Fascinatingly, video game retailers make peanuts from selling new products. The stores are typically small and compact, making stock numbers limited and therefore large quantities to drive profit essentially impossible. JB Hi-Fi, for example, buys in high numbers to reach a profit, justified by its large store space.

Still, the retailer relies on pre-owned games to increase profit for video games, driven seemingly by a ridiculous pricing model that punishes Australian consumers. Thankfully, a long overdue inquiry into video game pricing is set to be undertaken by the government.

The most pressing matter here is the growth of digital purchases and the affect that the blocking of used games would actually have on consumers. Nintendo is poised to offer new games for Wii U at retail and online, something Sony has already done with Vita.

If used games are blocked, it would force consumers to buy a new product, and would perhaps push someone further to simply buy the game online from the comfort of their couch. Is this notion really “anti-consumer”?

I’m personally on the fence, because I’m already conflicted by both the notion of ridiculous markups, and the prospect that video game publishers don’t see a cent from used game sales. That’s fine for a game that’s five years old, but for a game that’s recently been released and still has such a strong level of consumer awareness, the publisher is most certainly losing out on an expanded install base for a product.

There must be correlations between the lack of new franchises, an obvious lack of “original” ideas, and a growing number of sequels coming from major publishers, with the unbalanced and broken retail model currently employed by video game retailers. Piracy is a contributor, particularly for PC, as is the GFC, but publishers must be factoring in pre-owned sales into projected sales figures for their products. It would seem irresponsible for them not to.

So I’m really asking myself, what’s more “anti-consumer”: blocking used games for future hardware, or allowing retailers to sell used products with ridiculous markups? Then there’s also the notion of being especially hostile to big business, seeing as though video game retailers are relying on a market that offers absolutely nothing to the creators of the products being sold.

It seems that Mr Tretton is treading a fine line with retailers, following EB Games’ reluctance to stock the PSPGo in certain regions because of a lack of physical game copies, as well as the struggles currently plaguing major UK-based retailer, GAME. The blocking of used games would be as much a favour to publishers as it would be for the pro-digital crowd, as it would really just be a market that digital distribution could replace.

What’s really driving this “anti-consumer” rhetoric is a lack of digital competition and a pretty awful pricing structure, where the likes of Microsoft can afford to charge full price for a digital copy of a game that was released a few years ago.

It’s just especially mind-boggling that an entire industry can rely on a market as unbalanced and hostile to publishers as the pre-owned market is. Retailers have created their own market, which in turn has surely contributed to an industry that is reeling from major losses (Nintendo recorded its first loss ever last financial year) and is holding back on a new generation of hardware that is long overdue.

That, to me, seems more “anti-consumer” than the prospect of blocking (over-priced) pre-owned software, especially if it’s compromising publisher confidence and restricting the ability to offer gamers new and exciting products.

By Gaetano Prestia - Bio

Do you agree that blocking used games is "anti-consumer"? Why/why not?

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Is Blocking Used Games 'Anti-Consumer'? Comments

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Keen to hear some thoughts on this.

I don't think it's so black and white, because I think that the pre-owned market isn't as "pro-consumer" as we think it is considering the mark-up.

I'm not completely against the market, but it's especially broken, and considering retails reliance on it, is open to exploitation by the likes of EB Games (which I think they do with their mark-ups).

I buy pre-owned games if they're especially cheap, but I also acknowledge the concerns from publishers, and these are the firms we rely on for experiences and original products.

So it's definitely a hard issue to choose a definitive stance on!
I think as a consumer, we should be able to do what we want with our products.

Forget that we're talking games for a minute. If I buy something, keep it in good condition, and then decided I want to sell it, I should be able to.

I'm not going to buy or sell to someone like EB, but when I was a kid, I had no choice other than to sell old stuff on eBay to pay for new games. Otherwise I couldn't get them.

I guess this'll change when everything goes digital. How do you buy/sell digital items? You can't. The whole reason pre-owned stuff is cheaper (on eBay at least) is because you're not getting it in brand new condition, so you pay less for it to be a little used. That can't happen with digital, so I guess it'll be the end of preowned.
To long to read while walking, but I definitely will as soon as I can sit down.

The first thing I thought when I read the quote was that he doesn't really feel empathetic towards consumers. Saying that he approves the the notion to block used games would nigh on suicidal from a business perspective. They lose their customers respect and business. I'm sure that if he could block used games without any consequences, he would do it in a heartbeat. But he's obligated to say otherwise.

That said, I'd be happy with the blockage of used games on the condition that either titles never go out of print, or they'll be digitally available indefinitely.
I made up my mind about this a long time ago. Basically if developers prevent me from buying and selling used games, I will buy maybe 1 game a year. I'm sure this will be the case with many other people too.
People now expect a way to recoup their losses with selling their games back preowned. Which is fair enough, it's like a double sale item. You can't just stomp out this expectation.

As for buying the marked up preowned games, it's a rip off. You're buying a copy of a game, a disc with a digital copy, nothing more... we gain nothing from purchasing preowned games. The price is usually only cheap in comparison to the overpriced new item sitting on the next shelf. Only time that you buy preowned is when you're looking for something in store immediately. Import, buy online, wait for sales (or preowned sales) are all better options.

It's a win (getting to sell)-lose ('discounts' on overpriced PO) situation for us.

A possible resolution for the next gen... put blocks on games for the first 12 months. Make it so they can only be registered on one PSN/XBL account in this time. Allow stores to enforce this, so they don't buy back games in the first 12 months of the game's release. They aren't going to go under, they still have their current gen PO and they're selling a shitload more because of the new gen sales. 12 months later, the sales continue, people recoup their losses, everyone is happy. Next-next gen we will move to digital.

Beta said: Keen to hear some thoughts on this.
I don't think it's so black and white, because I think that the pre-owned market isn't as "pro-consumer" as we think it is considering the mark-up.
I'm not completely against the market, but it's especially broken, and considering retails reliance on it, is open to exploitation by the likes of EB Games (which I think they do with their mark-ups).
I buy pre-owned games if they're especially cheap, but I also acknowledge the concerns from publishers, and these are the firms we rely on for experiences and original products.
So it's definitely a hard issue to choose a definitive stance on!


At the end of the day, EB is only one of many forums for people to buy and sell used games. Yes, EB exploit the system, but it's how they survive. As long as people are happy (and lazy or stupid enough) to go in and trade their games for peanuts, I don't see a problem with it. Considering the myriad of other physical stores, websites such as ebay, or those based off-shore, I don't think the current model is "anti-consumer" at all. The EB situation is a bum deal for customers, but nobody forces someone to trade games in there.

Is the EB setup anti-developer? Well, I guess you could argue that. I'd be interested to find out how many pre-owned units EB actually sell though, given their prices are often $5-10 less than new (which can then be price-matched with competitors anyway..!).
I don't think EB exploit the pre-owned system as much as people think. Yeah, for new releases within a few months, it's a few dollars short of a brand new title. But for old titles, let's say over 12 months old, it's a reasonable price. Yes, I have seen on occasion that brand new is cheaper than pre-owned, but I bet hardly ANYONE buys a very recent title second hand. Maybe someone who's worked in the retail sector could shed some light?

Silence said: That said, I'd be happy with the blockage of used games on the condition that either titles never go out of print, or they'll be digitally available indefinitely.


I'm kinda in this boat, but it's NEVER going to happen.

tommo47 said: Is the EB setup anti-developer? Well, I guess you could argue that.


It the publisher setup anti-retail? I guess you could argue that too. They make sweet FA on new titles.

I think that Jack Tretton is being honest with his words.

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