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GameStop sees majority of digital sales from cash; won't pursue used PC game sales
GameStop is building its digital distribution business, having seen a 158 percent growth year-over-year in the third quarter, with strong returns thanks to customers who don't use credit cards."70 percent of our sales for DLC is non credit card. So that's a customer either paying with cash, GameStop gift card or trade credit," Steve Nix, manager of PC digital distribution for GameStop told us at DICE 2012. "Think about all those Call of Duty Elite subscriptions and all those customers who aren't using a credit card to purchase them.""We're actually growing [the downloadable content] market, because about half our DLC customers never purchased DLC previously. So, for game developers that want to sell more DLC, we're introducing gamers to DLC for the first time in our stores."Nix recognized that it may seem odd the retail chain's brick and mortar stores are so successful selling digital content. It's clearly servicing customers who don't have credit cards or don't want to use credit cards, but still wish to extend their favorite games. He "absolutely" feels this same situation is what's pushing their in-store PC full game sales, despite PC gamers having so many online purchasing options.Since Gamestop purchased Stardock's Impulse digital distribution store, we wanted to know if it would continue to pursue Goo, which would have essentially created a "used PC games market."Nixing the idea, he said "We don't see a lot of interest in that model from our publishing partners." He recognizes customers would be interested, but is not really seeing publisher support for such a model.
Rumor: Canadian EB Games stores merging used and new game shelves
Employees of Canadian EB Games stores wrote in to Kotaku to alert the site to an alleged new policy that will make your attempts to shop there even more difficult. According to the tipsters, Canadian EB's will no longer have dedicated areas for used and new games. For each platform, the two will share the exact same wall space. In addition, used games will be marked with white price stickers, just like new games. To make matters worse, one employee said that new games are to be buried behind the used ones. Another Canadian EB employee told Kotaku that these claims aren't accurate, and we have yet to see anything official from EB/GameStop, so don't start boycotting EB just yet -- at least not just in response to this issue.
Report: Used and digital sales make up 35% of total console spending in the US
American gamers buy more used and digitally distributed games than their European doppelgangers, according to a study released by market analysis firm NewZoo. The organization's statistical findings show that 23 percent of console games purchased in the U.S. are used; slightly more than the European market where used games account for 20 percent of total console sales. Digitally distributed titles rank lower in both regions, taking up 12 percent of the console market in America and 9 percent in Europe. That 12 percent, by the way, represents approximately $960 million, on account of 54 percent of American console owners reportedly spending an average of $49 a year on console downloads. American PC gaming culture appears to have adopted the idea of digital distribution much faster than the console market, as an estimated 58 percent of all PC gaming dollars are spent on digitally distributed games or DLC. Now, we're no market analysts, but we think the disparity between PC and console download shares has a lot to do with PC gaming's readily available plethora of hats.
Uncharted 3 will use PSN Pass to combat piracy, make money on used games
Uncharted 3 will use Sony's online pass system, much like we saw with Resistance 3, Sony España Software Manager Juan Jiménez told The Vault. Sony's PSN Pass features a one-time-use code for accessing content on PSN; the code can later be bought for $10 in used games. Jiménez said the pass system is a buffer against piracy, although we bet the added revenue from previously barren used-game sales doesn't exactly make Sony's decision harder. Uncharted 3 is the second Sony title to use the PSN Pass, but we expect to see it in all of Sony's future mainstream releases, as does Jiménez.
Pac-Man & Galaga Dimensions save files are permanent, unable to be reset or erased
When Resident Evil: The Mercenaries 3D dropped earlier this summer without the ability to reset save files, gamers were justifiably mad. And though it's been over a month since that story broke, it seems that another Japanese publisher didn't pick up on the resulting backlash. Namco's latest 3DS title, Pac-Man and Galaga Dimensions regrettably contains that exact issue. According to Wired's Game|Life blog, there is simply no way to erase a save after it's been written to the cartridge. "I've looked all over, even going so far as to ask a Namco Bandai representative, and it doesn't seem like there's a way to erase the game data," the post reads, noting that this design doesn't just affect the earned in-game awards (which can't be deleted), but also high scores. That means the most recent high score is the only one that the game records -- bizarre! As Capcom's version of the save file issue sparked reaction from both retail and consumers (and, eventually, Capcom), we've reached out to GameStop for comment about Namco's own misdeeds.
Game retailers go back and forth on Resident Evil: Mercenaries 3D sales policies
Used games retailers across the globe have adopted a number of uncharacteristic policies regarding sales and trade-ins of Capcom's one-save-only title, Resident Evil: The Mercenaries 3D. When news of the game's unrestartability first surfaced, North American Gamestops announced they would not accept the game as a trade-in -- a policy which reversed today. Speaking to IGN, a Gamestop rep explained, "GameStop did ask the U.S. store base to stop accepting trades on Resident Evil: The Mercenaries 3D as we evaluated the save system for the game." The representative added, "Upon further review of the process with our publisher partner, Capcom, GameStop will resume taking trades on the game effective Wednesday, June 29." Overseas, British retailer HMV has ceased taking trades for the title -- and EB Games Australia has apparently stopped stocking the game altogether. A representative on the EB Games Facebook group explained, "If you would like to purchase it with us then of course we will sell it to you, it will be a case of an order with our store." They added, "We made the tough decision to remove it from sale because we have everybody's best interests in mind, and don't feel its fair that you guys would be paying $60 for what is essentially a one use game."
Rumor: Warner Bros. joining 'online pass' camp with Mortal Kombat
Warner Bros. may be following in the (very large) footsteps of Electronic Arts and THQ when it comes to discouraging -- or at least profiting from -- the sale of used games. Joystiq has learned from a tipster that when Mortal Kombat hits shelves on April 19, its box will include an "online pass" token that must be redeemed before playing online. At present, WBIE evidently intends to do the same for its high-profile releases F.E.A.R. 3 and Batman: Arkham City. Since the latter won't feature multiplayer, though, the token would have to unlock some other (equally attractive) content. According to an email obtained from our source, which appears intended for retailers, WBIE won't be promoting the pass -- in fact, no reference to it will appear on the game's packaging. Instead, it is apparently providing retailers with details on the pass, including how to purchase a new one if you're buying a used copy of the game. Unsurprisingly, a new pass will run 800 Microsoft Points / $10 for Xbox 360 and PS3, respectively. As with EA's titles, there will be a free two-day "trial period" before players are prompted to either enter the code or purchase a pass. We've contacted WBIE for comment on this information. You can find an excerpt from the retailer email past the break.
Select Walmart stores offering $100 credit toward 3DS with old DS trade-in
This Sunday, the 3DS launches in the US and, to celebrate the occasion, US-based megastore Walmart is offering quite the deal for anyone who lives in one of a dozen states. When purchasing the new handheld, consumers in Alabama, Arkansas, Florida, Georgia, Kentucky, Missouri, Mississippi, Oklahoma, North Carolina, Tennessee, Texas and South Carolina will have the option of trading in their used DS for a $100 credit towards their 3DS purchase. If they've got two old DS systems laying around, both can be traded in for $200 towards a 3DS, but that's as high as Walmart's willing to go. The trade-in program will start this Sunday with the 3DS launch and continue through April 30. This promotion is in-store only -- sorry, no online orders.
PSA: PS3 copies of DC Universe Online tied to one-time-use codes
If you bought DC Universe Online on PS3 and decided not to commit to it for the usual MMO lifespan of forever, you won't be able to recoup your losses by trading it in. At least, you shouldn't trade it in, even if you find a store who will accept it, or you risk being a super-jerk. Sony Online Entertainment confirmed to Lazygamer that the serial key included with retail copies of the game is a one-time-use thing, and each disc only includes access for one account. That means that the first person to use a copy of DCUO is the only person who can use that copy. This kind of restriction isn't exactly new to consoles, with trade-ins of every iteration of Phantasy Star Online refused by retailers due to the unique codes tied to each disc. But it's not common -- mostly because MMO-type games on consoles are so uncommon.
GameFly's year-end sale deals up used games on the cheap
GameFly has begun its annual year-end sale and some of the prices on used games are just insane. We can tell you right now that you'll probably want to pick up Splinter Cell: Conviction on Xbox 360 for $9.99, Wet on PS3 for a buck more or MadWorld on the Wii for just $8.99 if you haven't played any of those yet. Unfortunately, some of the games on the list are already sold out but, if you hunt through it, there are bargains to find. With prices this low, we worry that the kids of GameFly employees will have to go without Christmas presents this year -- just so we can finally play The Saboteur for under 12 bucks.
Amazon.co.uk now taking game trade-ins for credit
No longer are our United Kingdom-based friends left with few gaming trade-in options other than ... whatever the British equivalent of Gamestop is (Gamestoppe?). Amazon.co.uk has begun extending the "trade your games and accessories for Amazon credit" program to its shoppers, some eighteen months after the program first arrived on the U.S. Amazon page. Shoppers interested in hocking their ludological wares in exchange for Amazonian currency can search for eligible games on Amazon's trade-in splash page, and can then print off a shipping label for free. Provided the items are shipped off within seven days, and don't arrive covered in scratches, bodily fluids or crumpet residue, the available credit will show up when the items arrive.
Analyst: Walmart could 'expand' used game market
According to a recent report from Lazard Capital Markets' Colin Sebastian, the firm's "industry checks" have revealed that Walmart has begun selling used games in over 500 of its stores. We decided to perform our own industry check, and the very first Walmart we called (in Tulsa, Oklahoma) was indeed stocking used games. The clerk we spoke to said that the store "just started carrying them." Further investigation revealed that used titles are also available on Walmart's website. The company revealed plans to begin a used game program earlier this year, and Sebastian believes Walmart will "focus on the deep-value end of the market (e.g., games under $20 ASP)," potentially preventing "overlap" with used game juggernaut GameStop. Cheaper, older games do seem to dominate Walmart's used inventory, although we did spot Rock Band 3 for $50. Assuming Walmart maintains this focus on cheaper games, Sebastian believes the program could "ultimately expand the market for used games." Sebastian notes that getting into the used game business isn't easy, requiring extensive inventory tracking, refurbishment and restocking. He concludes that it's unlikely for other used game distributors to be as "tightly integrated" as GameStop. We've certainly seen big names try and fail at the used game racket before ... Walmart included.
New NPD report to factor in digital, used, mobile and rental sales
Changes to the NPD Group's reporting practices sent a few waves through the game industry earlier this month. Now, NPD's Anita Frazier has explained some of the reasoning behind the change. Frazier notes that NPD has "long acknowledged" that its coverage of only "new physical sales of hardware, software and accessories" doesn't accurately represent consumer spending in the game industry. Furthermore, with new physical sales dwindling this year, Frazier notes that the old NPD reporting practices "caused unnecessary angst" for many industry followers. In other words, sales of physical game copies simply don't account for all the money pumped into the industry anymore. As such, the NPD will soon release the debut issue of its new report, Games Industry: Total Consumer Spend. While the report still includes data on sales of new games, accessories and hardware, it will also feature data on "used games, rentals, mobile apps, social network games, and digitally acquired content in the U.S." NPD has had plans to track downloadable sales for over a year now, though this marks the first time we've heard of plans to track so many other forms of spending. Depending on how comprehensive the report is, it could have hefty ramifications for anyone looking to follow industry trends.
Gamestop's Buy 2, Get 1 Free on pre-owned goods offer is back on
Every couple of months or so, GameStop gets bored with its usual routine of selling all of its used games and accessories, so it goes on weekend-long tears where it starts giving them away with the purchase of two other items. Fortunately for all of us, this is one of those weekends.
Toys R Us to start selling used games at 500 of its stores
Toys R Us is looking to get in on the used game biz. We know -- back in September, Toys R Us said the opposite, but it would appear that was all a ruse. (That's the last time we let The Giraffes trick us!) The retailer will sell these used games at 500 of its 850 stores in the US, GameSpot reports. The games -- which are handed over to a third-party company for testing before being sent back to be resold -- will go for no more than $30 each. Those trading in games can do so at an in-store kiosk for gift cards redeemable at any Toys R Us location and through its online store.
Best Buy and Target announce video game trade-in programs, clearly don't read webcomics
For some reason the used-video-games-as-controversy stars have aligned, and Best Buy and Target picked now of all times to announce new used game trade-in programs. Target is going to offer in store credit for all sorts of electronics trade-ins, including games and DVDs, with just a few stores for now, but expanding to 850 stores by the end of the year. Target isn't making any mention of reselling that stuff just yet, but Best Buy plans to start selling used games "soon," on top of the 600 stores it's launching it own trade-in program in this week. What's so special about all this? Well, THQ CEO Cory Ledesma just made headlines for a bit of a rant about the topic ("We hope people understand that when the game's bought used we get cheated"), and then Penny Arcade weighed in with a comic, as is their wont, which kicked off a bit of a gamer vs. publisher vs. retailer internet battle of the words. Which is our favorite kind. With online distribution, one time unlock codes, and DLC all warring to make used games obsolete, this debate might be moot in a few years time, but for now there's no shortage of opinions on the subject, and we'd love to hear yours in the comments!
Best Buy begins used game trade-in program
It looks like the "opportunity" Best Buy saw in the used game market has become "reality," as the company is now accepting used game trade-ins at nearly 600 stores in the US (with more stores on the way). Those who trade in games at Best Buy will receive a Best Buy gift card of equivalent value that can be used on anything in the store. Before long, Best Buy will begin selling used titles as well. Don't bother looking for some fancy, computerized trade-in kiosk either. In most stores, trades are accepted at the customer service desk, while "select locations" have a "dedicated Trade-In desk" inside the games department. If all that human contact is a bit much, you can also trade in games online at Best Buy's pre-owned games site. Gift cards will be mailed within two weeks. Also, "select titles" are eligible for an extra $20 credit. Update: Best Buy has issued a correction: This Sunday, August 29, the store will be offering a $20 gift card for select titles, not a $20 gift card in addition to a title's trade-in value. The website has a handy estimator to calculate the value of your used games. We're not quite sure what the basis is for trade-in value though, considering Alpha Protocol clocks in at $27 while Mass Effect 2 snags you just $8. If any of you out there take advantage of Best Buy's new program, be sure to let us know about the experience in the comments.
THQ not worried about upsetting used game buyers with new game bonuses
Poor pre-owned game purchasers -- you've been having a really rough time of it this past year, haven't you? Most of the major companies have battled your particular method of shopping tooth and nail by packaging DLC vouchers in with copies of their new games. Cory Ledesma, creative director for WWE Smackdown vs. Raw 2011 (new versions of which offered free DLC and online multiplayer access), recently told CVG, "I don't think we really care whether used game buyers are upset because new game buyers get everything." Ledesma explained, "We hope people understand that when the game's bought used we get cheated," later adding, "I don't think anyone wants that so in order for us to make strong, high-quality WWE games we need loyal fans that are interested in purchasing the game. We want to award those fans with additional content." That does it -- from now on, we buy all our WWE games new. Not for the DLC, mind you, but because we've got a strict policy against upsetting companies that are in constant contact with professional wrestlers.
Sony 'exploring' idea of Online Pass style system for its titles
In an interview with GamesIndustry.biz, SCE Europe boss Andrew House has suggested that the company is taking a serious look at implementing something similar to EA's Online Pass -- which requires those who buy its titles used to pay $10 to play them online -- with its first-party games. "On the principle of making online portions of the game available or unlocked from the disc-based release for a fee, we're broadly supportive of that," House said. "And we're exploring actively the same option for our own content." House admitted that such a system could be perceived as contradictory to Sony's long-running pitch of PlayStation Network's free online play model. "In terms of just a charge for basic online play, that's something that we have to talk about a lot more," he said. "We struggle with [that] a little bit because we feel very vindicated and base a lot of the success of PSN today -- a 70 percent connection rate across consoles -- on the fact that we've removed that major initial barrier to entry." Still, Sony has already dabbled with charging to enable online play for used (or, in the following instance, likely pirated) PSP titles like SOCOM Fireteam Bravo 3. In this case, the game included an online activation code which, if already used or otherwise non-existent, could be replaced for a $20 fee.
GameStop misses earnings target, used games make up biggest profits
[Image by moe_ on Flickr] Despite 99 new stores, continued strong used game sales and better performance than the rest of the retail video game industry, GameStop reported less-than-expected earnings for this year's second quarter, and delivered a fall forecast lower than analysts expected. Analysts were looking for $1.82 billion in sales this past quarter, but apparently the $1.8 billion GameStop earned in actual sales (31.4 percent of which came from used game sales) just wasn't good enough. Additionally, GameStop executives tried to convince analysts that they'd actually be saving money by spending $10 on a membership card and subscription to Game Informer, but analysts weren't interested, claiming that "all they wanted was to play Red Dead Redemption." Further attempts to sell the card also failed, despite assurances of 10 percent off used game purchases in the future.
