My good friends at MacGamer posted an interesting article today regarding the ongoing issues with the sale of second-hand games, being those games that consumers have purchased legitimately, and then choose after having played them to sell to another person. Corey Tamas spoke with Bungie’s Marty O’Donnell, the man who created the music for the newly released Halo Reach (and all Halo’s before it), about his views regarding this practice.
O’Donnell pointed to a practice in the industry in which the publisher determines that it must sell a certain number of the developer’s games per retail store in order to have recouped the expense of the development cycle. However, as O’Donnell states:
The publisher dictates to the developer that 50 people per store need to purchase the game in order for them to recoup and then share profits. The developer believes that their game will be played by 50 people per store. The publisher knows that they recoup their costs after the first 25 are sold. A retailer buys 25 copies and gets a small margin from the publisher. Then the same retailer buys those copies back from consumers and sells them again at a discount to 25 new consumers. On these sales the retailer gets a huge margin. The small developer needed 50 people to buy and play the game from that store and they did, however the store only shared from the first 25 purchases. Publisher is covered, retailer is doing fine but the developer is out of luck.
Now, I don’t know about anyone else, but it seems to me that this points to an atrocious behavior pattern on the part of the publisher, not on the relationship between the retailer and the consumer. After all, it is the publisher who dictated terms to the developer that they knew they needn’t have dictated in order to have recouped their expenses. The publisher required the sale of 50, not 25, games in order to recoup expenses…even though that wasn’t needed.
Obviously, as Tamas states himself in the article, this is not an issue that will be solved in one article, or a month. But certainly the more articles and discussions that are had, the more problems about the issue can be teased out. And the more solutions can ultimately be discovered.