Originally Posted by Shin2k35
I don't know why you'd think it's a ridiculous idea unless you didn't give it any thought. A lot of people have picked up on the premise.
A pirate buys the game, takes it home and distributes it. Devs make Â£30. Hundreds of people can get a copy of the game and the Devs still only make Â£30
A person buys the same game and a week later trades it in. Devs make Â£30. The person then trades in that game. The store sells it on for Â£20. Devs have still made Â£30, the store has now made Â£40. Imagine that same game comes back 6-7 times each time making the store Â£10 profit. The devs have still made only Â£30 and the store has now made over Â£100. Many people have paid for the game and yet the devs still only make Â£30
The idea is simply this: If devs are losing money left right and centre, the blame cannot possibly fall squarely on the shoulders of piracy. Trading in your videogames robs the developer of potential money. They know it.
The only thing that makes trading games more acceptable to person is that 1) Theyre paying money for it so they don't feel like they're getting something for nothing and 2) it's legal. Whereas the main reason people don't agree with piracy is that it hurts the devs, it isn't legal and it seems to annoy people that pirates don't pay for software.
Ignore the fact it isn't legal and we have the facts that it hurts devs and isn't paid for. Trading in would be illegal if Devs could lobby enough support in a court case. So, let's ignore the legality behind piracy and trading in. You have the main difference: the fact that pirates haven't paid.
Let me explain a little better. Lets take Crytek as an example here, using some arbitrary numbers.
- Crytek spends $98,000 in development costs on Crysis.
- Crytek spends $1 per DVD to burn it, label it, box it, and distribute it.
- Crytek charges $50 per copy upon release, so they must sell 2000 copies to start profiting. In addition, they must make at least another $100,000 in profits so that they can afford to create another game, so 4000 copies must be sold in total.
- Pirate buys one copy of the game for ($50) - this is his "development cost".
- Pirate spends $0.25 per DVD to burn it, label it, and distribute it.
- To compete with Crytek, the Pirate charges $5 per copy, so he must sell 11 copies to begin to profit. In addition, he must make at least another $50 in profits so that he can afford to buy their next game and pirate it as well.
- Many Pirates do the same, so now there are more pirated copies of the game on the market than there are legit ones.
- People see the much cheaper price of pirated games, and start buying those.
- Crytek can no longer compete, and must now reduce their price to $5 to match the competitors (Pirates).
- If Crytek sells only the expected 4000 copies they would have needed to, they would only make $20,000, which doesn't even cover the development cost.
With used game sales, there is ABSOLUTELY NO RISK of this happening because the ENTIRE supply is now coming from Crytek. They do not create any sort of direct competition with the developer in this manner. Piracy creates an infinite supply
for the market at any level of demand, effectively reducing the value of the product to 0. Used sales still has a limited supply, and since they are based off of the original sales, they retain their own supply curve and do not share one with the original product. This way, the developer can retain control of his prices and profits.
Read up on some basic economics.