Game Consoles Are Dying: A GDC Talk

[Menegrothx]

See that is the thing that never makes sense to me.

Not to mention that games that cost 60 dollars in the US cost 60 euros in Europe, almost 80 dollars. Dont know if the average European has more money to consume than your average American.

[AznKhmerBoi]

Disagree with teh video, personally think the console will keep on going, as long as the software is good with plenty of fanboys.

[MrPopo]

Downloadable is fine, the companies like it because they make more per unit since it cuts out manufacturing costs. If you switch exclusively to retro that just tells me that you aren't actually that interested in new games.

One thing you're overlooking is that the very price of the console itself becomes unworth it to buy if the library for it becomes too expensive. That might make Microsoft and Sony shrug their shoulders, but as Breetai said, people who buy used games often also buy new ones.

It's not that complicated.

So you're saying that you're unwilling to purchase a console unless there are X games you want to play on it? Do you have to be able to purchase them all right away? Or can you stretch the purchases over 5 years?

I think the thing that keeps getting us stuck is that we're arguing two different things. I'm arguing that used game sales hurt the industry because that's less money going into the developer's pockets, which can include things such as promising IPs being dropped due to disappointing sales. You're arguing that used game sales enable you to get games at the price point you like (though whether that price point is "cheaper than new" or a specific dollar value is a question unto itself). It seems to me, then, that game consoles should all move to the Steam model, where the people who want to play the game right away purchase it for full price, the people who are cost conscious wait for a sale, and no one gets to resell anything.

[Flake]

Or publishers could open up "Micro Economics 101" and look at the supply and demand graph on page 2.

[MrPopo]

Or publishers could open up "Micro Economics 101" and look at the supply and demand graph on page 2.

The graph that doesn't take into account public perception?

[Phades]

It seems to me, then, that game consoles should all move to the Steam model, where the people who want to play the game right away purchase it for full price, the people who are cost conscious wait for a sale, and no one gets to resell anything.

I think the part you're missing is mind share. When a game comes out it is "the new hotness" so to speak. If I have a few games sitting on a shelf, I may rush out and sell those so I can afford to buy it. After several months, it's lost that mind share and I may or may not care anymore.

With the way new games are handled nowadays, used gaming is already pretty much dead to me. The result of this is that I now refuse to pay full price for any game and have actually started buying far fewer games in total. Two years ago I was psycho and bought pretty much anything, knowing I could resell it and get a good chunk of my money back as long as I beat it quickly. Now, that's a little harder to do because of DLC vouchers, online passes, and the sort. As a result, there's a number of AAA titles I've passed on as of late. Those developers used to get their share of $60 from me, now they'll be lucky to get their share of $5 from me on a Steam sale (assuming the game is on Steam)

[Flake]

Or publishers could open up "Micro Economics 101" and look at the supply and demand graph on page 2.

The graph that doesn't take into account public perception?

"Console gaming is dying because mobile games are so inexpensive"

"I buy used [console] games because I do not feel like paying for the price of new"

These are familiar arguments, yes? If that is the case, then I think the public has long since gotten over any possible perception that expensive games are naturally better.

[o.pwuaioc]

So you're saying that you're unwilling to purchase a console unless there are X games you want to play on it?

Yes.

Do you have to be able to purchase them all right away? Or can you stretch the purchases over 5 years?

Irrelevant.

I think the thing that keeps getting us stuck is that we're arguing two different things. I'm arguing that used game sales hurt the industry because that's less money going into the developer's pockets, which can include things such as promising IPs being dropped due to disappointing sales.

But you're ignoring marketing entirely, which is crime #1 in business. I'm pretty sure you're the one in the back of the room saying, "But wouldn't selling our new console at a loss cost us money?" Moreover, if people couldn't sell back games, they'd be less inclined to get so many new ones. The used market actually promotes new games.

Or publishers could open up "Micro Economics 101" and look at the supply and demand graph on page 2.

The graph that doesn't take into account public perception?

"Console gaming is dying because mobile games are so inexpensive"

"I buy used [console] games because I do not feel like paying for the price of new"

These are familiar arguments, yes? If that is the case, then I think the public has long since gotten over any possible perception that expensive games are naturally better.

I can't believe you and I are agreeing on something.

[MrPopo]

Do you have to be able to purchase them all right away? Or can you stretch the purchases over 5 years?

Irrelevant.

Extremely relevant. It ties back in to my point of buying less games at a time. Unless you require something on the order of 50 games to make a console purchase worthwhile then I find it very hard to believe that you can't spread the library's purchases over the lifetime of a console.

I think the thing that keeps getting us stuck is that we're arguing two different things. I'm arguing that used game sales hurt the industry because that's less money going into the developer's pockets, which can include things such as promising IPs being dropped due to disappointing sales.

But you're ignoring marketing entirely, which is crime #1 in business. I'm pretty sure you're the one in the back of the room saying, "But wouldn't selling our new console at a loss cost us money?" Moreover, if people couldn't sell back games, they'd be less inclined to get so many new ones. The used market actually promotes new games.

False comparison. Used game sales is no where close to being comparable to razor and blades model, which is how non-Nintendo consoles are marketed. You are saying that everyone who currently buys used would stop buying altogether, instead of buying new. Remember that when you sell a game used that money is coming from another consumer who is buying used. Essentially the price of the new game is being spread across multiple people, with Gamestop taking a large rake off the top. If you cut out Gamestop you can lose a lot of overall customers in the ecosystem while still coming out with more revenue than you do today.

"Console gaming is dying because mobile games are so inexpensive"

Except people who are getting heavily into mobile gaming aren't expecting a Call of Duty experience. They come in expecting a cheap experience, but that can still be a fun experience. They aren't competing for the same mindshare.

"I buy used [console] games because I do not feel like paying for the price of new"

That is very different from pricing a game differently from the norm. When you sell a game new for $40 instead of $60 you send the message that you don't think your game is worth as much as a $60 game. With a used game the consumer expects a discount because it isn't new.

[o.pwuaioc]

Extremely relevant. It ties back in to my point of buying less games at a time. Unless you require something on the order of 50 games to make a console purchase worthwhile then I find it very hard to believe that you can't spread the library's purchases over the lifetime of a console.

It's irrelevant because when I was buying for consoles, I wouldn't buy even used games all at once. I don't think anyone does, except maybe rich Microsoft IT guys.

You are saying that everyone who currently buys used would stop buying altogether, instead of buying new.

No, that's not what I'm saying. Try to read better.