Retail Stores Killing Game Industry?

[killakanz 0]

InstantAction CEO Louis Castle has launched a stinging broadside on the bricks-and-mortar retail sector, branding it as a "parasite" that's "abused the industry horribly" by pursuing the second hand game sales and rental route.

 

And Castle - who co-founded EA's former Westwood studio and whose current project is aimed at revolutionising the discovery and sharability of videogames online - believes that physical retailers have threatened the very existence of the games business by such activity.

 

When asked if InstantAction would be the thing that killed bricks-and-mortar, he replied: "I hope so. I have no love at all for the Wal-Marts and GameStops of the world - they've abused the industry horribly with selling used games, and rentals.

 

"There's no love lost there at all. They're all desperately trying to figure out where to go next too, but at the end of the day they've killed the distribution method.

 

"They've put our entire industry in jeopardy by taking all of the money out of the system - between them and the pirates it's really a tough way to go."

 

He stopped short of predicting a timeline for the demise of physical retail, however.

 

"Oh, I'm not going to put the pennies on the eyes of traditional retail - those guys are going to be around for a long time, and it's going to take a while," he said.

 

"We're not going to be the only technology out there, but every one of them will be another brick in the wall, another step in the right direction to saving our industry from partners that became parasites. They're really no longer partners - they're killing the goose that lays the golden egg."

 

Wow, retailers branded in the same light as the pirates. Shocking...

The concept behind InstantAction is, frankly, brilliant for both gamers and developers (could be something Derelict Studios can play with). However it depends entirely on incremental payments from gamers, all games will be free to start off with (and you can share with friends on facebook etc) and when you get to the point where you want more of a particular game you can buy it piece by piece.

I'm not entirely sure that would make more money than pure retail. Afterall it doesn't guarantee that every player will spend their money on it.

[Rattuskid 0]

Retail and games don't get along too well, but I assumed that was due to the high turnover rate. Afterall, if you want some niche game from 1999 or so, you don't go to a brick and mortar store, you go online for it, hell Steam may even have it on sale... but I don't see how rentals or used games hurt the game industry anymore than rentals or used DVDs hurt the movie industry, or used CDs hurt the music one.

 

You're not guaranteed a profit with each transaction as the game designer.

[IconOfEvi 0]

Louis Castle, lol

[Korona 0]

This has been a problem for a while. While a resale may get 2/3rd the retail price the developers don't see any of it. This is why the smarter ones are introducing perks for having the actual game, codes and so on that can only be redeemed against a single user account, Dragon Age being one example. You can't get Shale unless you bought the game new or buy her as a separate download.

 

The best examples are the games like TF2 or Burnout Paradise where they just continually release more content for free.

[Rattuskid 0]

This has been a problem for a while.

 

Not for the consumer it isn't. Perks certainly help, but it was sold in the first place. The money has been made. Anything more one wants off resale is just trying to have your cake and eat it too.

[Korona 0]

Not if the retail store is selling it at near retail prices. It's a lost sale. The customer may think he is getting a bargain but if the developers aren't supported then the games won't get made again. Based purely on price piracy is even better for consumers because the game is free. Of course if the game is so bad that people are returning it after a week then I think that's pretty bad but a refund system would be the best option for everyone in this instance.

[Rattuskid 0]

So that's more the retail stores just being dicks to consumers than killing the dev team. Again, how often dose anyone who makes portable media get paid for 2nd hand transfers?

[Comrade Raptorkov 0]

It's not like they don't make enough money already...

[Korona 0]

@ Rattus, yeah digital sharing hurts the developers too but they are protected from 2nd hand transfers by piracy laws. If major high street retailers were offering to download new games for you for 90% of the retail costs they could get the lawyers in and shut them down.

 

@Raptor, large ones do, medium sized ones live mostly from contract to contract. Even in big studios the profits will go back into making new and better games. Unless you mean Activision-Blizzard or something. They control like half the PC games market with WoW alone and have a cashflow that is in the billions.

 

Personally I think selling games on a physical medium is pretty dumb. It costs so much more. If high speed internet were more prevailant it wouldn't be necessary. If your game is 100% based on line you can just refuse a connection to anyone without a unique key. It makes piracy almost obsolete. WoW is a good example, the hoops you need to go through to get a private server are pretty major and the experience is so degraded. Not that Blizzard needs more money, but this mechanism is surely a part of its success.

[killakanz 0]

This seems a decent idea to solve the second-hand market issue...

 

THQ has become the latest publisher to ask those that buy second hand copies of its games to pay for online play.

 

The first title to adopt the controversial practice will be UFC Undisputed 2010, which ships with codes for access to online features.

 

Those that buy the game second hand will be asked to stump up around $5 to gain access to the Fight Camp mode, which allows up to 40 players to train together online.

 

"This multiplayer content for UFC Undisputed 2010 will be available via a one-time code included with the game at purchase," said the company in a statement to Destructoid.

 

"Codes for accessing the content will be available for second-time buyers for an additional $5."

 

EA Sports has already revealed plans to charge pre-owned users $10 for an Online Pass and access to multiplayer features, and French publisher Ubisoft said this week that it has a similar infrastructure already in place, and is watching EA very carefully.

 

THQ UK has said that it will release details of pricing in the UK and Europe within the next 24 hours.

 

Not sure why they think it's controversial. It seems a sound idea keeping the publisher's hand in second-hand sales.

[Rattuskid 0]

I bought a DVD form a flea market, should I have to pay the studio to view it again?

[IconOfEvi 0]

The MPAA would prefer yes ;)

[Rattuskid 0]

See that's the issue, it's not the developers who will prosper, but the publishers. Not the people who made the games, but their bosses. It's BS.

[killakanz 0]

It's BS.

It's business.