Speaking to Gamasutra Best Buy and Target both claim that, while Gamestop may have the lion's share of the used games market now, things will inevitably change. Last week both Best Buy and Target announced the launch of used games initiatives, and while both companies have different approaches, the goal is the same: to tap into the lucrative market that Gamestop has managed to keep all to itself.

Right now both companies are not actually selling used games; Best Buy is using a third-party company to refurbish and repackage the games - with plans to start selling them "soon" while Target will take those used games and sell them or recycle them.

Best Buy merchant director of gaming David Benson told Gamasutra in an email that the company is not concerned about GameStop’s years of experience and stranglehold on the used games market: Read More

Target is getting serious about the used games market today, with the rollout of in-store trade-ins at select retail outlets in California. The trade-in program launches today in Northern California, with plans to expand it next month at more Target locations. By year's end Target hopes to offer trade-ins at over 850 stores nationwide. In addition to the in-store trade-ins, consumers will also be able to go to the Target website to trade-in used electronics and DVDs as well - for store credit. Apparently, you'll also be able to trade in select electronics too like iPhones and cellphones.

Target has been re-evaluating its videogame business in 2010, and adjusting accordingly to make the shopping experience more palatable for consumers. The used game trade-in initiative is probably part of these changes - and a way for Target to cut into the massive profits that specialty retailer GameStop makes off used games. Or you could just chalk this up to Target following the crowd: after all, if Best Buy is doing it, why shouldn't they?

WWE SmackDown vs. Raw 2011 hits stores October 26 but it has a little surprise for those that buy the game used: a $10 fee to play online and get the additional DLC. Like UFC Undisputed 2010, the next WWE SmackDown vs. Raw game will charge consumers who buy the game used a small fee to play the online content. Those consumers who buy the game new will be able to use an enclosed code to jump onto online and experience the extra content for free.

The package will offer online access, and some free DLC which includes playable characters Chris Masters, Rey Mysterio in a special "Dia de los Muertos" Halloween costume and WWE Diva Kelly Kelly in a "Devil" Halloween costume. The same features will be available to second hand game owners for 800 Microsoft Points or $9.99 via the PlayStation Network.

Source: MTV Multiplayer

Michael Pachter, gaming research analyst for Wedbush Morgan Securities, says that schemes to recoup cash from used game buyers doesn't seem to be having an impact on sales at GameStop. In a post-financials report on the retailer, Pachter said that the country's largest games retailer remained unscathed in its latest quarter and that aggressive code-based schemes for used games weren't hurting the retailer’s bottom line. This could be because most of these schemes from EA and THQ (in a small measure) are targeting multiplayer, which GameStop says only 25 percent of used game buyers are interested in.

"The company has not seen a negative impact on used software sales from first-use codes or new competitors in the space," Pachter said. "The company estimates that only 25 per cent of used game buyers play online.”

Naturally EA and THQ have just barely rolled out such schemes on a couple of titles. We'll see how it affects used games sales of titles like the latest Madden game in the next quarter. Pachter also shared his pessimism on GameStop’s plan to create a digital market space to sell DLC. Read More

Hungry? Have a stack of old videogames? Live near a Tesco store? Then you might be in luck.

MCVUK is reporting that at least 60 Tesco stores are now accepting videogame trade-ins and the resulting store credits can be used to purchase anything in the store. Among a sampling of prices being offered: £12 (approximately $19 U.S.) for 2010 FIFA World Cup on the PlayStation 3, £17 (approximately $26 U.S.)  for Mario Kart Wii and £19 (approximately $29 U.S.)  for the Xbox 360 version of Red Dead Redemption.

The purchased traded-in games will be available for consumers to buy used in the stores as well.

Select the pre-owned games check box on the Tesco store locator to find a location accepting trade-ins near you.

Videogame and movie trading portal Goozex announced that it has partnered with Bitmob to give fans an outlet for trading their old games and entertainment. Screams could be heard at multiple publishing headquarters in California.. The deal will see Bitmob's content on the Goozex portal and the company's trading technology injected into the Bitmob community.

The Goozex trading service, for those not familiar with it, is a proprietary peer-to-peer technology that connects members in the U.S. to trade their video games and movies using virtual currency. Goozex users trade their items and use the virtual currency earned to get many more items for only $1 each. Membership to Goozex is free. Read More

In an interview with Computer and Video Games, THQ's Global publishing executive VP, Ian Curran, gave his opinions on DRM and the possible future of the $60 retail game.

Speaking about the cost of retail games, Curran said that the industry may move towards a micro-transactional market where the whole game isn't necessarily in the retail box. Citing the free-to-play MMO market as an example, users play the game and then buy additional content they want.

The problem with such an example is that most free-to-play MMO games can be played without ever buying extra content, whereas big publishers will probably charge for features that players consider essential like multiplayer. Of course, with a lower price, consumers might find paying extra for multiplayer more acceptable. Here's a bit from the interview: Read More

Denver-based used games retailer JJGames calculates that the used games business is worth about $2 billion USD. With all the talk of big publishers trying to find new ways to monetize a market dominated by the likes of GameStop, it is pretty interesting that new game sales for various platforms including PC are $20.2 billion USD, according to NPD Group figures for 2009.

According to research from JJGames, presented as an "infographic" and available on IndustryGamers, 47.3 million people buy used games every year; in 2008, Gamestop - the largest purveyor of used games sales - 23 percent of sales were from used games and it generated 42 percent of the company's profits, while 25 percent of new games sales generated 45 percent of the company's sales revenue. These revenues are based on an average used game price of $20 and an average new game price of $43.83. Read More

At the ongoing Develop Conference in the UK, a representative from GameStop Sweden and the CEO of a new company attempting to make games as easy to play and share online as YouTube videos got into a bit of a dustup over used games.

GamesIndustry.biz details the flare-up between GameStop’s Niall Lawlor and InstantAction chief Louis Castle. Lawlor told Castle that the used game business helps GameStop preserve its margins, but that, “We don't like being in the used business, it's very difficult to manage.”

Lawlor said that without used game sales, GameStop would not be in business.

Castle answered that selling used games would quicken the demise of brick-and-mortar stores, adding, “While you're preserving some margins, used is accelerating changes. He continued, "I can see the train wreck, it's coming. Pretty soon everyone is losing money. Used is accelerating the decline of profitability for publishers. The oxygen is being sucked out of the room.”
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According to a report from Ipsos MediaCT, 64 percent of those surveyed preferred physical discs over digital downloads. Ipsos MediaCT surveyed 1,000 people to come up with its findings. According to Ipsos MediaCT director Ian Bramley consumers still love physical media because of nostalgia, the experience of shopping for games, and the concern that digital collections can be lost.

"I believe the preference for physical discs amongst next-gen gamers reflects the potential value they derive from the pre-owned market, which is holding up the preference for physical – this is unlike the music and film markets," said Ipsos MediaCT director Ian Bramley.

"Physical games discs have a long and well-established history, which is a deep mindset to change – particularly when gamers build a physical collection as they fear losing digital versions. In-store browsing is also important to buyers."

Sony was the first major game maker to figure this out first-hand, when results from digital sales for the PSP Go were less than stellar; the PSP Go, as you probably know, dropped support for the PSP UMD format. Read More

EA Sports president Peter Moore claims that gamers "appreciate the need" for his company's Project $10 anti-trade technology and Online Pass. This despite the fact that others in the company have said that these initiatives are not about fighting used game sales, but providing better online services and additional content for free.

Online Pass went live with Tiger Woods PGA Tour 11. It requires that consumers who buy EA Sports games must pay an additional fee of right around $10 in order to access online play. EA Sports will use this method for all future games.

Speaking to Kotaku, Moore said that gamers "recognise the business model implications of new versus used." He added: "Whilst I'm not sure they're angry, they absolutely look at what's going on in the marketplace and understand totally what it is we're doing. One thing I have to do, and it's my job, and my development team's job, and my marketing team's job, is make you not want to trade the game in." Read More

Second-hand game reseller and buyer, Game Trading Technologies, filed an S-1 with the Securities and Exchange Commission today for a common stock offering. Game Trading Technologies is in the business of bulk acquisition, repacking and re-selling used video games to larger retailers. The company is rumored to be rumored to be driving Best Buy's new used games business. Game Trading Technologies will be traded on the OTCBB under GMTD.

Speaking to MCV, Lazard Capital analyst Colin Sebastian had a number of interesting thoughts on the company. For one, he believes that "the move sheds some light on efforts by traditional and big box retailers to buy and sell used games." He also believes that GTT is partnering with large, national retailers to drive awareness and adoption of used game trading among mainstream consumers, and in the process broaden the market for used games."

Sebastian also says that the company already has relationships with several national retail chains in place already including Wal-Mart, Best Buy, Toys-R-Us, and 7-11, among others, and is likely a contributor to Best Buy’s recent used game trial in 72 stores. Read More

According to estimates released by NPD Group, U.S. consumers spent $4.5 - $.4.75 billion on used games, rentals, subscriptions, digital downloaded games, downloadable content, and mobile applications. This data comes from refined "point-of-sale tracking, consumer research (using tools like Games Acquisition Monitor, Video Game & PC Game Subscriptions Tracker, and Consumer Purchase Tracker), and figures provided by NPD retail and its publisher partners," according to a Gamasutra report.

A good portion of that figure, the report says, comes from downloadable content and digitally distributed games. This helped bring the total amount consumers spent on video games in 2009 to $15.0 - $15.25 billion. The other $10.5 million in that figure comes from consumers buying physical media, though a breakdown of that data (how much was from new versus used games, for example) was not available.

NPD also pointed out that this figure excluded social networking game titles: Read More

Yesterday EA announced the Gun Club, a rewards program that will give fans of its shooter games special perks like early access to betas, news, inside information from game developers, in-game content unlocks, and early access to demos. The program launched yesterday and begins with Battlefield: Bad Company 2 and the Medal of Honor game.

EA says that this new rewards program shows appreciation to fans for their loyalty and adds value to the "entertainment experience."

At first glance you might think this whole program is free, and it is value-added if you buy EA's games new, but if you buy them new it will be a lot like BioWare's Cerberus Network. In short, if you want access to it from a used copy of EA's upcoming shooters it will cost you extra.

Here are the details from the "terms and conditions" section of the Gun Club FAQ: Read More

THQ Executive Vice President of Core Games Danny Bilson (pictured) stated in a recent interview that the company is working on its own measures to thwart the used games market but indicated that the solution just might make all involved parties—publishers, retailers and consumers—content.

Speaking to GamesIndustry.biz, Bilson was tight lipped about specifics, but stated that the ultimate objective of such a movement is to stop gamers who purchased a title new from trading it in at all. He said of that goal, “That’s the war we’re in – that’s really tough for us.”

While emphasizing that what follows is not official, Bilson alluded to one solution that THQ might be working on:

With this one we're not going to lock out the multi-player to the used gamer, we're not. We're going to let them experience some of it but not all of it. And then he'll have to pay a nominal fee to get all the maps and all the stuff. That's not official, I'm saying that today, that's just what I'm thinking. Read More

Electronic Arts CEO John Riccitiello recently spoke to Industry Gamers and took some time to defend the company’s Online Pass initiative.

Online Pass, of course, ties multiplayer access for certain games to a one time use code included with a new, shrink wrapped title. If the game is traded in, the person purchasing the game used will need to spend $10 in order to receive a new code to unlock multiplayer abilities.

EA has stated that Online Pass was not designed to address used game sales, but was more about providing more value and entertainment to online users. Riccitiello was asked whether he thought this statement was disingenuous on EA’s part.

He replied: Read More

The first test of EA's Online Pass begins soon, with Tiger Woods PGA Tour 11 in stores nationwide. Of course the real test won't begin until first-time buyers dump their shiny new copies of EA's golf game back into retails stores like GameStop and used game buyers either buy it or boycott it. In case you haven't been following EA's Online Pass, it is a serial code based system for Xbox 360 and PS3 sports games from EA Sports that charges used game buyers $10 to access online play.

While the industry and angry consumers await the results of this little experiment, Joystiq's Law of the Game points out that game publishers maybe playing with a fire they can't put out: government regulation. Here's a sample, though there are more points worth reading in the rest of this article: Read More

Sega says that it will watch EA Sports' Online Pass very closely - a hint that the company may want to implement a similar system for dealing with used games in the future. Speaking to MCV, SEGA West president Mike Hayes told the UK publication that Online Pass "is a very clever idea" and something they "are certainly taking a look at."

SEGA has joined the growing number of publishers in support of EA's Online Pass system - a method of charging players to play EA Sports games online when they purchased the title second hand. Sega has joined a chorus of corporate voices who want to use system to exact extra fees from consumers who buy used games. Companies expressing interest in such systems so far include THQ (who introduced a $5 charge with UFC Undisputed 2010) Sony, Codemasters, Microsoft, Take-Two and Ubisoft. Earlier this month Activision owned studio Treyarch - the developers of all future Call of Duty games - said that it was also interested in EA's success with both Online Pass and its "Project Ten Dollar" initiatives. Read More

Update: Instead of writing a whole new story on what is essentially the same thing, I thought it apropos to add comments from EA UK General Manager Keith Ramsdale who also sat down for an interview with MCV (the company is in full force showing off some new titles in the area). In the interview, found here, Ramsdale is adamant that the motivation behind Online Pass and the move is purely positive: "It’s all about the customer, about improving their experience. It’s not a defensive measure against pre-owned or piracy." Read the whole interview at MCV. Thanks Joystiq.

Original Story: Peter Moore thinks that Online Pass is great value for the money, according to an interview with MCV. The EA Sports president talked about why "Online Pass," the EA Sports initiative that charges used game purchasers $10 to connect to multiplayer features per title, is important to the company's ability to create better content and support millions of online players. Read More

While you (and I) were enjoying the Memorial Day weekend, the owner of an independent videogame store in Columbus, Ohio recorded and uploaded a new YouTube video in which he further assails the  Online Pass initiative of Electronic Arts.

EA’s measure, for the uninitiated, would tie online gameplay to codes that come with select new titles, meaning that purchasers of used games, which feature Online Pass, would need to shell out $10.00 for a new code in order to play online. Read More

While GameStop might be on board with it, the owner of a Columbus, Ohio independent videogame store (Level One Games) is “completely appalled” at Electronic Arts’ Online Pass and claims the introduction of the measure is “about destroying the buy, sell, trade business.”

EA's initiative will see new games come with one-time use codes for online play. Anyone who purchases a used game that features Online Pass will need to pony up $10 in order to access online features.

The owner outlines his take on how EA’s Online Pass will affect his business and consumers, saying “I have to assume that most businesses, knowing that you’re going to have to pay an extra $10 to buy an Online Pass for that game, are going to give less in trade and sell the games for less used. At least that’s the way I would do it.”
Read More

While consumers are less than thrilled with EA's "Online Pass" plans, GameStop seems almost giddy about the prospect. During its quarterly investor conference call, the country's biggest games retailer said that it has not seen an impact from EA's "pay-wall," or "Project $10" initiatives.

The company also said that initiatives like "Project $10" can serve as a way to educate consumers on the existence of DLC that they might not know about. He also added that most used game buyers don't play online, which is absolute rubbish (do you really think people that play Madden don't play online?). Here's some more from GameStop CEO Dan DeMatteo: Read More

THQ is following the lead of EA and Ubisoft, who have both committed to charging consumers (not retailers, mind you) extra money for buying used games. They are calling it a "pay-wall," but many consumers are calling it "highway robbery."

According to Gamasutra, citing a Destructoid story, THQ has confirmed that it will test out a pay-wall model with UFC Undisputed 2010. Those that buy the game new will have the benefit of a code that will allow them to play online, while those that buy it used will have to pay $5. Here's what THQ told Destructoid: Read More

And so it begins. French publisher Ubisoft said during its Tuesday earnings call that it is closely watching EA's "$10 solution" to monetize used games. Ubisoft Chief Financial Officer Alain Martinez told conference call participants that Ubisoft "will probably follow that line at sometime in the future." He added that most of the games that the company plans to release next year will "have downloadable content available from the start."

EA's initiative to monetize used game sales is called "Project $10" and the basic idea is to get consumers who buy a used copy of a game at places like Gamestop to spend extra money one a $10 one-time code to get additional content that is basically free to those who buy that same game new.

But EA is even more aggressive when it comes to its sports titles; the company announced "Online Pass," which would charge used game buyers $10 purchase a one-time code and unlock online play in sports titles like Madden, Tiger Woods, NCAA Football, and more. Again, those who purchase a new game will be able to use a code that comes with the game. Read More

Profits from used games continue to fuel Maryland-based Game Trading Technologies, Inc. (GTTI).

The company, who we took a look at earlier this year, specializes in acquiring and redistributing used games, and also offers technology—billed as a “game trading engine”—which provides real-time, dynamic pricing for used games and consoles. GameStop, Wal-Mart, Best Buy, Blockbuster, 7-Eleven, Toys“R”Us, eBay, and GameFly are among GTTI’s customers.

The company released first quarter results for the three months ending March 31, 2010 and revenue rose to $11.4 million, up 37% from the $8.3 million reported in the same quarter one year earlier. First quarter gross profit was pegged at $1.98 million, also up 37% from the previous year’s $1.44 million.
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The co-founder of Blitz Games Studios believes that pre-owned games are a bigger threat to developers than piracy.

Andrew Oliver told Develop that the “damage done” by used games sales would push publishers even more towards digital downloads. Oliver cited a figure that original copies of games are traded in up to four times to claim that such a practice effectively cuts publisher and developer royalties to such an extent that “the money going back up the chain is a fraction of what it was only a few years ago.”

Oliver added, “I understand why players do this, games are expensive and after a few weeks of playing you’ve either beaten it, or got bored of it so trading it back in to help pay for the next seems sensible when people are short of cash.”
Read More

EA Sports may have to change its "It's In the Game" slogan to the more appropriate "It's in the Game (if you bought it new)." While some publishers and game developers continue to talk about how to deal with the used games market popularized by retailers like GameStop, publisher Electronic Arts is firing the first shot with EA Sports Online Pass. The company announced this week a new system that - it hopes - will compel consumers to buy its sports games new.  But this new scheme doesn't target retailers like GameStop - it puts a bull's-eye on consumers.  

EA Sports Online Pass will be a part of all future EA SPORTS simulation games on the PS3 and Xbox 360 beginning in June with Tiger Woods PGA TOUR 11. Each new game will come with an additional code for online play that will give you access to various online modes, content and more - but here's the catch for consumers who buy the game used: you will have to pay $10 to access all the online games modes and additional content by buying a new code in-game, through Xbox Live or PlayStation Network. Read More

If any doubt remains about how lucrative the used videogame market is, news from a company that specializes in the field should remove such misgivings.

A Maryland-based company called Gamers Factory completed a public stock swap with City Language Exchange in late February, while simultaneously executing a private placement with investors that netted the company $3.9 million. The merged company now operates under the name of Game Trading Technologies and is public, trading under the symbol GMTD on the OTC Bulletin Board.

Armed with the new funds, Game Trading Technologies just acquired more than 320,000 used videogames and accessories from a “national retail firm.”
Read More

A website started earlier this year by the family of a boy stricken with a rare disease takes donated videogames and resells them, using the money to assist in finding cures for rare (or orphan) diseases.

GameZone details the story of DonateGames.org, which was launched by Jim Carol. Carol’s undertaking began two years ago when his then 11-year-old son Taylor was diagnosed with Philadelphia Chromosome, a rare form of Leukemia.  After uprooting his family and moving to Seattle in order to ensure Taylor had the best care possible, Carol became of aware of Penny Arcade’s Child’s Play charity and witnessed first-hand the positive effects videogames had on the afflicted youth, saying that games “played a big part in helping them get better.”

Carol acknowledged that his road to embracing videogames was not a direct one:

I’m a 50-year-old pop and I wasn’t a gamer. But I do believe in video-games, I don’t think they are bad, I think they are wonderful for education. My contemporaries jump to conclusions right away and think they (video-games) caused Columbine, and that’s just not the case. You will see, this year, a big part of what I’m going to be talking about in the media is that we need to change that opinion. Video-games are good and gamers are good, and they are benevolent, and they are kind and they are giving, caring people.

Carol also specifically called out HopeLab’s game Re-mission as scientifically proven in its ability to speed recovery time in sick children. The game, aimed at young people with cancer, was financed by eBay founders Pierre and Pam Omidyar.

NC Soft, Electronic Arts, Valve, Telltale Games and Paradox Interactive are among the partners listed on the charity’s website. The Academy of Interactive Arts and Sciences made a donation to the program as well. Donated games are eligible for a tax credit equal or greater to what would have been received if the game was traded in.

We often hear publishers bemoan the fact that they don’t see any revenue from used game sales. But is that really true?

In a recent interview with IGN, Game Crazy’s Director of Used Games Marc Mondhaschen says that publishers are reaping benefits from game trade-ins, albeit indirectly:

We did a study not too long ago for a very large vendor who we managed to figure out for them 20 percent of their sales inside the first 28 days were paid for with trade dollars. So you got 20 points of their sales that wouldn't happen unless we had a trade business going. And that's specialty retail. Game specialty retail is maybe a third of the channel, 35 percent of the channel. So you got 10 percent of your sales that wouldn't happen unless somebody was out there trading games with your customers.

And if you didn't have specialty retail it would be pretty hard to sell innovation into the channel at all. I mean, Wal-Mart doesn't really buy Katamari Damacy. So, in order to innovate, in order to grow innovation in the business you need a specialty games retailer that actually knows something about videogames. And in order to have them, they need the margins through used games...

Mondhaschen explains that while publishers don’t typically see any money from used game sales, they do benefit in other ways:

When The Lost and Damned came out we started selling a whole lot more Grand Theft Auto 4, both on the new side and on the used side. Which, then, sort of funds people's ability to go play L&D again...

-Reporting from San Diego, GamePolitics Senior Correspondent Andrew Eisen...