Nintendo: Consumers don’t like used games
April 5, 2009 by Ruibo
Reggie Fils-Aime, President of Nintendo of America has said the company does not believe second hand game sales are in the best interest of consumers.
Quite ironic if you’ve asked me, I would usually prefer to pick up something cheaper even if its “used”. The fact is (at least for me), you’re still going to be playing the same game. The only thing you’ll notice is the cosmetic differences which are normal tear and wears on the game cartridge, and even so, it’ll be from the time you made the purchase to when you stick it into the wii. Nonetheless, as long as it works its still good.
According to this chart, 49 million have purchased a used game.
“We don’t believe used games are in the best interest of the consumer” Fils-Aime told Venture Beat.
“We have products that consumers want to hold onto. They want to play all of the levels of a Zelda game and unlock all of the levels. A game like Personal Trainer Cooking has a long life.”
“Describe another form of entertainment that has a vibrant used goods market. Used books have never taken off. You don’t see businesses selling used music CDs or used DVDs. Why? The consumer likes having a brand-new experience and reliving it over and over again. If you create the right type of experience, that also happens in videogames.”
“We just think it’s a bad idea,” he insisted. “The one retailer that has a substantial business in this has figured out a way that is effective for the consumer.
“That’s tough for other retailers experimenting with this, in part because their employees don’t have the expertise in this market.”
I wonder how businesses like Gamestop can managing their used game business if consumers does not buy used games. Additionally, Amazon launched their video game trade-in platform just about a month ago. I can’t help but to wonder how accurate Reggie’s statements are. If there was the slightest chance for his statement to be true, it would be the fact that Nintendo targets kids (in which the mommy and daddy pays for) and females (who just doesn’t like used things). What’s your intake?
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I recently bought a new Wii with 3 used games. New Wii games in the UK sell for around £40 each. I’ve never got my head around why most people buy new games because in my eyes, no game is worth more than £20. Without people buying new games, I wouldn’t be able to buy them used. I recently got No More Heroes for the Wii for £12 used, Mass Effect on the Xbox 360 for £8 used, and Gear of War 2 for the PS3 for £20 used. I rarely buy new games because they’re not worth it. Most games that I’ve played in say the last 5 years haven’t lived upto their hype, so I’d say I was a bit wary when you consider that new game cost around £40 each. Buying used games saves you a lot of money.
I pretty much agree with you about buying used games. But I still wouldn’t be too disappointed if I had to buy a new game, if I think its worth paying the full price for the work developers put into it.
But… Gears of War 2 for the PS3?
Interesting that you bought Gears of War 2 for the PS3 because it’s an Xbox 360 exclusive. Did you make a mistake or did you buy a pirated copy ported to the PS3? Just curious.
I would love to know where the poster before purchased gears of war 2 for the PS3
I hate buying used games. The wonderful smell of the inside of a new game box, the crisp, clear feel of a brand new instruction manual….these are all part of the game buying experience that used game sales can’t match.
Most of my DS games are secondhand.
I’m female.
You’re a moron.
hmm, I apologize if I’ve offended you in anyway but there’s no need for name calling. I can honestly say though, females tend to be a bit more materialistic than the average male.
I’m not saying this applies to all females but you get the point. Not trying to be sexist but its reality.
Doh!
bull*%@#, .. it’s a stereotype, like all black people love fried chicken, excellent way to lose business…moron
Uppity bitch.
Learn your place.
Women are usually to smart to be mesmerised by shiney objects. Lots of men are still attracted to nice shiney plastic boobies. And, when the mid-life crisis hits…. Cars, younger women…. the list goes on. Women materialistic? Naha!
Makeup, fashion magazines, the tyra banks show, purses, shoes, mmhmm.
When will men learn that we cannot win an argument against a women, cause we have a need to make sense, a woman isn’t goign to let a litte thing like sense F^<k up their argument!.
WoW, I never realized there were that many female readers. I guess I’ve lost this debate.
Do you have any figures to match what you just said or are you just pulling them out of your ass? Next time take a communications course on the effects of Mass Media before you dicks try and call us women materialistic. Advertising is a social construction of gender. College educate yourself, plzkthx.
As a woman, I can say that you’re right. The bulk of the female population is materialistic and has to have the hot new trendy “whatever” it is flavor of the moment. Not every woman is like that but far too many are. A stereotype has to be a good portion true or it wouldn’t be a stereotype.
Thanks, you’re the first female that “somewhat” defended me.
“You don’t see businesses selling used music CDs or used DVDs.”
Wait, then how come I often go to used CD/DVD stores if they apparently don’t exist…
Where have I been shopping?!
There are at least three businesses dealing in used CDs/DVDs plus one dealing in used games within a 15 minute walk of where I live. all of them are usually pretty crowded. this guy clearly hasn’t done his homework
The problem is that it’s not really about whether it is used or new, but the price. Here in Canada (and I assume the US) used games are far overpriced. Generally you will only save $5-10 on a newer $60-70 game by buying it used. Then throw in a beat-up box, missing manual, and potentially scratched disc, and the appeal all but totally disappears.
Another factor is that trade-in values are a joke. You’re lucky if you’d even get $30 on a new release that you just paid $60 for, only to see that reseller turn around and sell it used for $55.
Older games also become so cheap new ($30 or less) that for games over 1-2 years the trade-in value drops to a mere $5-10.
There needs to be better value. If the trade-in values were better and the prices of used games at resellers were lower relative to the new retail price, then more people would both be trading in their games AND buying more used games. As is, the best value is to buy a new game and keep it.
@Brian
Of course, if you raise the trade in value and lower the cost to buy, you eliminate the profit margin. And if you eliminate the profit margin the used game stores go under.
@Reggie Fils-Aime
Look at the Amazon marketplace, abebooks, and libraries now that the actual used bookstores have (nearly) died out. And used DVD is a huge market, it just comes in the form of Blockbuster and other rentailers.
Also, trade it rates tend to be heavily dependent on game quality (outside of sports games.) I used to work at a used game store and the two most expensive games in the store were FF2 and Chrono Trigger.
But even if I only pay $1 less than the new price for a used game, it’s still a dollar a didn’t spend. And if I sell my game back, even for $5, that’s still $5. Sure, there are some games that I have kept for almost ten years, but for the most part, and there are some games that I buy new, collector’s editions and whatnot, because it’s worth it to me, because I fully expect the game to live up to its hype. But for the most part, I may buy a used game on a whim, and then sell it back a month later when I’ve finished with it. So, I end up paying $30 for a used game that came out 6 months ago, then getting $10 or so of that back when I sell it. I just paid $20 bucks for a game that you paid $60 for. And I played the same game.
Of course this guy will say this, because new games makes his company more money. Though most of my games I have gotten new, it is because I can’t find used copies of them, or I don’t want to wait to buy it, which sometimes I admit I do neither and play it by other means.
But I do always eventually buy the game…
Thats not really true, Used games make more money for the retailers. Thats why when you go into a store like gamestop they try and push you to buy their used games, rather than buy the new copy.
Pft… I’ll buy a used game as long as it’s Used: Like New… or Used:Very Good. I have no problem with that… at all.
Reggie stands with his wide-eyed statistic-twisting smile trying to bring you closer to an ideal consumer reality where you buy only new games.
Crime: Reggie claims fewer gamers buy used games than buy new games and thus that the consumer doesn’t like new games. While this may be true, Reggie makes no note of the market share used and new games occupy, which may be of more relevance, ie: the amount of money spent on expensive, new games vs. inexpensive, used games.
Motive: Nintendo occupies a market of vague intellectual property. Since they still sell cartridges and discs, selling a game used is as easy as a regular transfer of property. The fact is, the _actual_ used game market for Nintendo is difficult to quantify; what we do know about the market dynamics of used games come from outlets who specialize in used games such as GameStop, which reap enormous profits from the sale of used games.
Unlike Microsoft or Blizzard, Nintendo doesn’t reap license benefits and have the power of tested EULAs on their side to keep the used game market at bay. Thus, the used game market poses a particular threat to Nintendo.
The Problem: Nintendo doesn’t have a right to profit from every point of sale of a video game. If an owner doesn’t want a copy of Cooking Mama, the owner has a reasonable expectation for their item to meet the Warranty of Merchantability so they can sell it to someone else.
Maybe a more effective PR tactic on Nintendo’s end would be to emphasize the resale value of their games (Chrono Trigger? Earthbound?) versus the redundant bullshit of the other game systems (You ever seen a playstation game sold for more than $20 in 2009? Ever seen a Madden past 2000 cash out for more than $10?). Seriously, Nintendo is like the BMW of the game market: they should emphasize investment to increase sales, and paint the other guys as throwing away larger sums of money forever.
I own a Wii and most of my games were bought used. It’s just more economical. And I sell most of my games when I’m done with them. They always sell really fast on Half.com. Seems to me like plenty of people want used games.
Its not in his best interest most of all… But yea, you like a clean crisp new product… but sometimes, like buying used cd’s, you dont think its worth it to shell out 50 bucks for some of the “eh” game thats been out for a while.
What’s the guy talking about used books and music don’t sell. I’ve seen plenty of used book stores and used record stores. Most movie stores and cd stores even have a used section!
Well, we all know that used books, compact discs, and movies enjoy a lucrative second-hand market, so clearly cognitive dissonance has forced him to reconcile the incongruity of his position with reality by editing out parts of his reality which don’t fit. This is extremely common and not necessarily a deliberate lie, though that cannot be ruled out, either. However, when someone says something that is very demonstrably false it is usually cognitive dissonance, as it wouldn’t be very smart to attempt such a feeble lie.
On a side note, it always bugs me how so many people misuse the word “irony” …so please, PLEASE don’t follow this author’s example because it is wrong. Yes, there is some small amount of wiggle room around what constitutes irony, but this definitely is not it. You have only skimmed the surface of the meaning of irony, as you have left out its essential core and missed the point entirely. Look deeper.
I work at a Gamestop, and honestly, most customers seem to like buying used games. It’s cheaper, and they can try it out (and if they don’t like it, they can have a full refund within that week at our store). I know other places sell used games, but I’m not sure where Nintendo is getting their evidence from. Maybe some other places don’t give the benefits EB Games/GameStop does? I’m not sure.
Heh. It also might be that Nintendo is upset that they don’t get money from the used game sales. I know tons of people who work for the publishers come in to our store, telling us that they’re disappointed in GameStop/EB Games for selling used. I would be mad too, seeing as the publishers don’t get any profit from it.
So MAYBE Nintendo is being a little biased here? I’m not sure.
Clearly when he says “in the best interest of consumers” he means best interest of “our” profits. Nintendo doesn’t get residuals for 2nd hand sales, otherwise they wouldn’t complain about it. They make money by selling new products, pure and simple, and that’s what they want to sell to people and would like nothing better than to see used games, etc. go straight to the trash heap rather than being re-used.
Are people really stupid enough to think any differently?
The thing is, is when someone buys a used game, the people that profit are the stores themselves, not the developers/publishers. So of course they aren’t going to want people to buy used games. They want consumers to buy new games, so they can get their cut. In the developers’/publishers’ eyes, a consumer buying a used game is getting the experience they created without giving them their credit.
That being said, I have bingo cash, and I fucking love used games.
The two most untrue statements on this page:
“You don’t see businesses selling used music CDs or used DVDs.” -Reggie
Really, Reggie? I don’t know what stores you go to, but out here in California used CDs and DVDs are big business.
“Women are usually too smart to be mesmerized by shiny objects.” -Sara
That is not only the most untrue thing on this page, but is the most untrue thing I have ever read. You stick the ugliest guy on the planet in a Ferrari and they’ll be lining up. And it isn’t guys lust for bling that keeps the jewelry industry fat and happy. Women aren’t just mesmerized by shiny opjects, they are obsessed with them.
Hey Mr. Bigot, can I buy you a drink?
I always recommend customers to buying used games. It’s not that I want to loose the sales on the games we sell, but I see alot of families trying to please their kids and themselves, especially now when there’s alot of families trying to not spend as much money. Also, many games get discontinued or the store I work in might not carry anymore or never did carry, and I get a lot of pissy customers in those cases too.
I’m a girl, and I enjoy new games, but I have and will by used games if they are at a decent price for being used and in mint condition.
Sometimes places like EB games and Gamestop are charging almost as much for a newer/used gamed then what I would pay new.
If thats the case I will buy new.
Ok, wait “You don’t see businesses selling used music CDs or used DVDs.” So here in Utah USA I guess that stores like Graywhale music/DVD stores exist, or the superstore chain FYE, or the numerous used game stores that also sell DVDs and CDs. I’m so confused here. As far as i am concerened, I have a 90% used game collection, very few games are worth my money to purchase new, when i can buy 2 or 3 used for the same price!
“According to this chart, 49 million have purchased a used game.”
Can you not add? 45 million in the “New + Used” section, 2.3 million in the “Used” section = 47.3 million. Even if you round it up, you don’t get 49 million.
used books have never taken off? it’s called a library
Why buy new or used games when you can get them for free? I havent paid for any new games since i got my Wii, Xbox 360, PSP and DS Modified. Only took 1 minute to run the mod software and no i have unlimited games to play.
As a female I find your logic faulty, but not offensive. After all, when was the last time a woman you know didn’t wander off to follow the siren song of the big red and white SALE sign? ^_~
As for Nintendo consumers not liking used games, it’s not that we don’t like them, it’s that no one ever brings them back which is why Chrono Trigger is still $35 used. o_O
If you’re buying used from Gamestop, /quit and go to amazon or ebay. I’m sure you’ll find much cheaper there.
BTW, your blog looks great.
Aw, why thank you. ^_^
And /quit GameStop is easier said than done. I worked there for three years, and while the store itself can go die in a fire, I enjoy visiting my former employees.
You can always grab a cup of coffee at a cafe but I assume its much easier when they’re already gathered together.
FYI, your 2 RSS urls are broken on the top navigation bar.
Your about page somewhat reminds me of my own dilemmas with the economy.
I know. That’s why I added them to the upper right hand side. They’re unfortunately part of the wordpress theme I picked though and I can’t get rid of them.
So until I think of something witty enough (and not already bought up) URL, I’m stuck with them.
You should definitely be able to edit the theme to adjust the urls, the codes should be in the header file. There’s also a feedburner plugin that detects and replaces your old rss feeds with the new one. http://wordpress.org/extend/plugins/feedburner-plugin/
No no dear. You’re thinking of wordpress.ORG not wordpress.COM
We little folk don’t get nifty things like “plug-in” options or altering the CSS because we aren’t greasing the gears with teh monies.
But the RSS feed in the upper right corner (either to add to your RSS stream or to email) is set up with Feedburner.
Thanks for the false hope though.
Hmm, I didn’t mistaken but I figure that feature would included. I am pretty sure you’re able to edit the CSS or at least with limited capabilities.
Why not host your blog elsewhere and on your domain? Shared hosting is relatively cheap and does have its perks. Additionally, I believe wordpress.com offers hosting solutions as well if you have your own domain. Not sure if there are any restrictions of any type but I think it beats being on the WP platform.
Can’t decide if Fils-Aime or the author of this ‘thing’ is a bigger moron. Is it crazy to think that someone who writes an article in English should at least have a basic command of the language? The baseless opinions in the ‘article’ are almost comical. This reminds me of submissions to my middle school newspaper.
Also the thing about Used Games at Gamestop is if you buy a game used and you don’t like it you can return it within 7 days and get a refund. If you buy a new game and you hate it you are screwed.
I don’t think that it’s just this interview that makes Reggie sound like an idiot. What he should have said was “Our demographic, senior citizens, housewives, and toddlers, don’t like used games,” and left “gamers” out of it. Any respectable gamer only buys one or two new Wii or Nintendo DS games a year because there are only a handful of actual games coming out for the platforms in the endless stream of low-quality-but-somehow-full-price shovelware that Nintendo seems fit to pass off as legitimate software.
I know Nintendo needs to make money, but isn’t this exactly what led to the video game crash of 1983? A bunch of simple games and knock-offs playing on low-quality hardware? I feel that by making the market more approachable that they’re hurting the industry as a whole – it won’t be long before the majority of their new demographic becomes discontent with waggling the Wiimote and will want to move on to more complex games, which Nintendo and its third parties no longer provide.
Reggie should just stfu.
This isn’t the first time this has come up. They just want to ban sales of used games so they can make more money. Dont let them do it.
It’s very good