I was walking around GameStop this holiday weekend looking at some of the great used game bargains, and something rather odd occurred to me looking at the boxes on the shelf. With the proliferation of buying content online through DLC (Downloadable Content), or on your device via an App store this maybe a thing of the past and if the game publishers have their way, it will be.
Lately I have been really questioning how long physical media is going to hang around for. This is because of the need for instant gratification in our consumer culture, I mean why go to the store and buy a game when you can simply get on the PlayStation store buy it, and download it to your device in minutes. I began to think how this is all playing to the Game Publisher’s advantage; who no longer wish for us to own something, but will gladly license it to us for the same price as buying the physical goods. Simply put when you don’t buy a physical game you can not resell it on eBay, loan it to your friends or trade it in for another game, which is money out of the game publisher’s pocket.
This is because 9 times out of 10 if you buy something online your technically not buying it, your simply licensing it for your device which your using it on. Your also agreeing to an insane EULA that is almost unreadable to someone is not studying law part time. The copy you end up buying is then usually somehow locked to your device in some way shape or form using DRM. If you’re not familiar with DRM it stands for digital rights management, and it’s what companies use to keep you from doing completely legal things with the media you purchase like lending it out or making a copy in case you lose the original. This is because DRM operates under the assumption that everyone is out to pirate their goods and treats everyone as suspect. Wonder why you can’t simply lend someone that game you bought on the virtual console, that’s DRM hard at work. It basically locks content to the buyer, ensuring that if someone else other than the original buyer wants to play it, they will have to buy another copy. So if you’re going over a friend’s house you can’t simply bring that game with you he has to buy a copy for himself, or if the game really sucks you can’t trade it in for another one. Last year GameStop ALONE made 2 billion dollars off used games alone that is a huge market, and that is money the game publishers feel should be going into their pockets instead of GameStop’s. How do you do this? Get rid of used games completely.
2 glaring examples of publishers who are trying to eradicate the used market are Apple with the iPod touch and Sony with the PSP GO. I mean when the PSP GO came out all I could think about is, why would you do this? After listening to Cory Doctorow talk about his issues with the Amazon Kindle it all clicked into place. Because if you buy something virtually, and download it to your device you can’t do the things with it that you could normally do with a more physical media, like trade it in. The iTunes App store is probably a better example if you buy a game on an iPhone or iPod touch you’re agreeing to certain terms and conditions and it is locked to that iTunes account. So if I buy a game on my account I technically can’t give a copy to my wife and let her play it on her iPod or iPhone, even if I bought the game and she bought the device. There are ways to get around that, but it’s a huge NO-NO in Apple’s eyes and when they figure out a way to make that impossible to do, it will be. Basically if you buy a game on either device you don’t really own it therefore can’t resell it, thus no used games for either platform.
So what to do? I suggest buying physical media whenever possible at least with this option you have a physical object that you can in turn do what you like with. Because quite honestly what happens if Sony goes under? Will your copy of Final Fantasy 7 you bought off the Playstation store still work? Keep in mind that with some EULAs you’re not covered if your device crashes and you loose your copy and you have to pay to re-download it. So keep this in mind this holiday season when asking for gift cards or buying stuff online because you can’t return a downloaded game or movie no matter now much it sucks, but FYE and Gamestop will gladly take your shovelware.
Interesting post. Now that we’re at a point that hardware is capable of supporting downloadable content (movies, games, music, etc.) I think we are going to see more and more game developers move towards that for exactly the reasons you stated. I can’t really say I blame them because they lose tons of money on the used game market. I’m not a fan of the way gamestop operates so I won’t give them any business but from what I’ve read, sites like Goozex definitely give the gamer the opportunity to stretch their dollar which cuts directly into the game developers profits.
The positive of DLC is that I think it gives independent or smaller development shops the opportunity to get their product out to a wide audience when previously that wasn’t possible. More selection and more choice is always a good thing.
I just finished shadow complex last week – and while it was a great game with a lot of replay value – the fact is I can’t really see myself playing it anymore. It will sit there and do nothing because I can’t give it to anybody else or sell it. Did I get 15 bucks of enjoyment out of it? Sure. But I like the fact that I can recoup some of my cost when I’m done with a game. Gaming can be a very expensive hobby.
While I do agree that we will see more and more DLC coming out in the next few years and see it be successful – I think it will be a very long time before the consumer wraps their head around not being able to buy a video game in a store – I don’t think thats ever going to happen actually. It will always be there in one form or another.
I’ve been worried about this for a while, and even posted about it myself back in May on my own blog.
Considering that Amazon actually deleted someone’s copy of George Orwell’s 1984 from their Kindle, I don’t like the fact that you don’t “OWN” anything when it comes to these downloads. Scary stuff to me. That’s why I always buy physical copies of everything.
“Amazon actually deleted someone’s copy of George Orwell’s 1984 from their Kindle”
irony x2
If you were one of the thousands of people who got banned from Xbox Live recently, you lost all access to any legally purchased XBL downloaded game or downloaded content to any game you owned.
Although, honestly, I have no problem with the used market getting eliminated. If only because GameStop is a horrible video game store, they push used copies on you for almost no savings whatsoever compared to the new company, and the developers don’t see a dime of that used money and actually lose money when they convince you to buy a used copy for five dollars cheaper (which they bought for 30 dollars less) than the retail new copy. You may as well just pirate it at that point.
I also think DLC is the worst thing that could have happened to video games, so maybe I’m biased. It has already begun where companies have DLC magically ready the day games come out, which is absolutely heinous. The original defense of DLC was that it gave longer shelf life and more value to titles, but now that companies release incomplete games in order to sell the other pieces as DLC, that argument is invalidated. Not to mention how much certain evil companies love microtransactionining people to death for the littlest stupid things.
I happen to agree that Game$top is not the most fair or gracious of retailers, but its all about being able to do what you want with the media you purchase. You have to realize once upon a time once you purchased something you were free to do whatever you wanted with it and slowly our rights are being changed to technically even though we purchase something, we don’t own it anymore and I wanted to bring some much needed attention to this.
See Joe, this is what I’ve been saying for a year now. I think it is crazy that you are stuck with a virtual ball and chain of you purchase a dud of a downloaded game. I think that you should have a time frame to test the game and if you don’t like it credit should be restored to your account. I have fell victim to this several times and I was upset!
To be fair mike – the ability to download demos is HUGE.
[...] week, Dan discussed digital distribution and its potential effects on the games industry. This week, we get a chance to see its realities as [...]
[...] week, Dan discussed digital distribution and its potential effects on the games industry. This week, we get a chance to see its realities as [...]
[...] I get to see the disc first), but that really isn’t what keeps me from buying online. While we’ve visited this topic here before, let’s give it another go, shall [...]
[...] I get to see the disc first), but that really isn’t what keeps me from buying online. While we’ve visited this topic here before, let’s give it another go, shall [...]