EA moans about used game sales

Tue Sep 2, 2008 11:24AM EDT

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Electronic Arts isn't content with the fistfuls of money it earns on the video games it sells. Now the company says it's working on ways to grab money from second-hand sales of its titles, calling used copy sales a "very critical situation, because people are selling multiple times intellectual property."

Now never mind that U.S. law only gives EA the right to profit from its games the first time they are sold. (In law this is known as the "doctrine of first sale" and it's been part of copyright law since 1908.) EA is arguing that video games should be exempt from those laws because "digital goods is [sic] not actually becoming inferior in quality, so people passing that on is actually very challenging for us."

The situation is clearly dire: Electronic Arts had revenues of $3.7 billion this fiscal year, up from $3.1 billion in 2007. Tough times. Tough times.

Let's consider the issue rationally. Of course the reason so many people choose to purchase used copies of video games is the exorbitant amount of money they cost in the first place. If EA is serious about increasing new copy sales, the solutions are obvious: Either lower the price from the usual, absurd $60 per title, or make games so compelling that users will insist on having them new (and refuse to ever sell their old copies). For many gamers, the only reason they're willing to shell out $60 for a new game title is the knowledge that they'll get $20 or $30 of that back a few months down the road when they sell it to another player. Price gouging has been part of the game industry for years, and that's an issue that's actually getting worse. (Only a few years ago, $50 was the top price on a console game. When the Xbox 360 hit, $60 suddenly became the norm, though most Wii titles are considerably less.)

Fortunately, it looks like EA is not going to try to take a legal approach to halting second-hand sales but is planning to build a new business model that leverages "additional services and additional content that you get online." Does this mean the company will move toward no longer selling physical media sooner rather than later, so there's nothing that the gamer can actually resell? (That's an eventuality all digital industries will have to face someday, but it's one which scares them immensely due to the fears of piracy.) EA is mum for now. It's, as they say, "complex."

Until you figure it out, EA, I implore you: Quit your whining about used games and have a little empathy for your cash-strapped customers.

Comments on EA moans about used game sales

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  • 6 Posted by muscogeekid on Thu Sep 3, 2009 7:30PM EDT Report Abuse

    It's funny that the image you chose to attach to this story is from the "Space Invaders" game because this is a game that was developed 3 decades ago, yet it still generates revenue. As a lover of vintage video games, it just amazes me that they are still selling these games. I have several disks of them that I play on my PC. Must be pure profit by now. So, is it possible that all video games can look forward to such longevity? I agree; the video game industry does seem to be in gouge mode instead of giving its customers a really good reason to keep coming back for more. Take heed from the music industry, EA.

  • 7 Posted by alexgannis on Thu Sep 3, 2009 2:50PM EDT Report Abuse

    EA use to be good but greed have taken over, even their game quality have falling, if they keep this pace up soon it will back fire at them just like the music company no body will want to pay anything and start to find a way to download games for free if this have not already happen.

  • 8 Posted by cnull on Thu Sep 3, 2009 3:27PM EDT Report Abuse

    @albloch69 - That's not exactly true. The company is specifically worried about sales, not overall profitability, in its complaints about used games. (That is: If there were no more used game sales, there would be no real impact on the expenses within the company.) EA is in fact having a rough year, profits-wise, but that says more about its internal mismanagement than it does about sales -- and since EA is alluding to worries about used sales cutting into new, that's a more appropriate data point to analyze. Still, your comment made me think... I wonder what would happen to GM if used vehicle sales were banned...

  • 10 Posted by rogueist on Thu Sep 3, 2009 8:49PM EDT Report Abuse

    I only buy my games used, usually months if not years after they first come out. About the only thing I keep up and current is WoW and some other MMORPGs. That is the way EA should be looking at - giving away a MMORPG for free and just charging people a monthly fee to use it. They could make that $3.7 billion every MONTH with a hot game.

  • 11 Posted by d_gunde on Thu Sep 3, 2009 3:50PM EDT Report Abuse

    EA's point is moot. Games (like other goods) DO become inferior by being used. New guarantees a shiny new game disk, while buying used means your disk is likely to have a few scratches.

  • 12 Posted by dubyac99 on Thu Sep 3, 2009 3:49PM EDT Report Abuse

    Used or new, most games play EXACTLY the same, doesn't matter what they look like even a few scratches does not affect game play. Having said that I don't side with EA. Also, another point, games in SNES days sold new for $70 as I recall, so price comparisons, to inflation, are invalid in videogames and electronics in general. I wait for all games to be used, cheap and on Amazon.com for 1/2 the price of new, and it makes it so I can buy more, thus doubling my pleasure.

  • 14 Posted by seawav26 on Thu Sep 3, 2009 9:11PM EDT Report Abuse

    the problem is that people can no longer afford to buy the games new.. when it comes down to buying groceries for the house and gas to get to work or the new game from EA the new game can wait. Right now I do not having any of the new generation of consoles. I want a PS3 but I can wait longer for it to get even cheaper. EA needs to lower cost and then they will sell more.

  • 15 Posted by rapmetal47 on Thu Sep 3, 2009 8:29PM EDT Report Abuse

    I agree with gullwingdoors 100%. Thank you for the informative article, Mr. Null.

  • 16 Posted by pcedor on Thu Sep 3, 2009 8:04PM EDT Report Abuse

    I am so sick of hearing these billion dollar entertainment conglomerates whine about losing money that is not their money to lose in the first place. If I buy a book or a movie or a game I should be able to give it away, show it to anyone, loan it to my neighbor, trade it for a miniature pony, destroy it if it stinks, toss it in the ocean for good luck, I should be able to do whatever I want to with it. Also I should be able to make a copy of the product on whatever media I choose, dvd, cd, reel to reel tape, whatever, just in case I really do somehow destroy it accidentally. I should never have to buy a second license to use that software ever again in my lifetime or in my children's lifetime if it is passed on to them if I have already paid for one license. Period. The same is true of the books on my bookshelf.

  • 17 Posted by jeffrey_wilinski on Thu Sep 3, 2009 4:32PM EDT Report Abuse

    Well, no offense to EA because I play and like their games. But, I bought the game with my good money so I own it. Just like my washing machine. So when it's time to sell it, well, what's the difference?

  • 18 Posted by arosadler on Thu Sep 3, 2009 2:58PM EDT Report Abuse

    Being able to resale your games is great, but like cassettes and 8-tracks, optical media is old and nearing obsolescence. Just like mp3s, digital download is the future of movies and games. EA would probably rather lose money to resale.

  • 19 Posted by falcongmp on Thu Sep 3, 2009 3:58PM EDT Report Abuse

    from what ive seen, large companies like EA are ruining the harcore seen of gaming. ----- them and there "release the same game every year with a new number at the end to make it seem as if its actualy a new game" buisnesses like them need to die.

  • 20 Posted by wittik on Thu Sep 3, 2009 10:48PM EDT Report Abuse

    Personally, I would be more interested in companies rereleasing working copies of old Out-Of-Print games instead of having to buy them used from people who artificially raised the price. I've seen some OOP expansion packs that originally sold for $20 posted on eBay for over a $100 - I don't see any reason that the publisher had to sell so few of them and make them that rare. Ditto for companies that already own the IP for established games but will not make a release compatible with new operating systems and sell it. I've been deliberately vague here, but you can draw your own conclusions about who I am talking about if you've seen the same symptoms.

  • 21 Posted by george_sepmeier on Thu Sep 3, 2009 4:08PM EDT Report Abuse

    I still play GTA3 on the PS2 I bought in 2000. Sure I've played newer games, but if I want to play Halo 3 or GTA4 I'll just wait till one of my friends has it and invite them over to have pizza, mountain dew, and beer. $60 Spent on booze and pizza is worth $1000 spent on games and flashy consoles these days. ;)

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