Saturday, May 30, 2009

Game Resale Concept: Game Publishers Keeping Profits On Game Resales

Hello All,

I have read many a time how game publishers be they EA (Electronic Arts), Sony, Microsoft, THQ, amongst others lament. On how they are losing royalties when consumers of games (gamers) resale they're game title as a "trade-in". At places like Blockbuster, Hollywood Video, GameStop, or at a small business video game retailer. Where the aforementioned retailers above resale a used game or basically rent them out to their customer base. All the while extending the shelf life of a game title at the expense of the game publisher.

What if a game publisher turns the table on such a secondary market? By beating those secondary market resellers of games at they're own game. (pun fully intended)

The manner of which I see this could benefit the game publisher and the consumer at the same time. Since the gamer / consumer will need an incentive in order to part with their hard copy of a game title.

The game publisher will offer a 50% off retail store credit with the game publisher E-Commerce site. Besides offering the consumer a future 10% discount on any future game they purchase from their E-Commerce site. There can be other marketing or publicity incentives like a free T-Shirt of a game title of their choice, etc...

What this will do is lower the circulation of "Traded Games" in the secondary market. From the usual retailers that skirt the game publishers in paying additional royalties in reselling a game title. Be it as a "used product" or on a continual basis as a "rental product" at POS. (Point of Sale)

When a gamer (consumer) does sell back their game title to the game publisher. The publisher will send out a CD / DVD mailer sleeve postage paid. At no cost to the consumer in order to return the hard copy of the game title. There could be additional requirements such as including the original game manual. But that will be up to the discretion of the game publisher policy in buying back used games they once sold previously.

Behind the scene once a game publisher receives the used game into their inventory. They can "Re-Purpose" the game title, as in ascribing a new unique CD Key to the disc. Including updating the game disc with any additional game patches since the original product sold at retail. Once the game disc has been refurbished it can be resold by the game publisher as a "Used Game Title". At a reduced price point from their game publisher E-Commerce site or anywhere else in their distribution network of retail outlets.

The savvy game publishers could even make offers to purchase back game title discs from their rival game publishers. Where for a small processing fee they ship back in volume to the original game publisher the used game title. Where the original game publisher can "re-purpose" the used game procured from their competitor game publisher for resale.

All the while the consumer (gamer) gets the incentives of store credit and a future discount of a game purchase. From the proprietary E-Commerce site the game publisher owns and operates exclusively. A win / win situation for the consumer and game publisher at the expense of retailers of trade in's and rentals. That have cheated game publishers of their royalties in full due.

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