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byDoS

Member
Oct 25, 2017
4,192
Because Publishers don't set the price of used games, meaning they aren't placing a lower value on them out of the gate.

Because it's your right to sell your own property.

And because selling games used doesn't necessarily devalue them. See Nintendo's used games.

We know the effects of subscription services, Netflix and Spotify have been around for 10+ years.

How? People still go to concerts and pay money for those. Vinyl sales experience record highs every year.
There is no devaluation. The people who still value music enough to pay for it pay for it. Those who find streaming services are enough would never have consumed music at the scale they do in the absence of those streaming services. The subscription services expanded the market.

I agree with both of these posts and think they can naturally coexist.

Absolute nonsense. The devaluation of music and TV from streaming has been severe. Music artists are largely reliant on gigs and other income streams because streams of their songs are generally paying jack shit. That used to be vastly different.

So no, your premise is completely flawed.

The notion that everybody was making money before streaming come sweeping the music industry is very amusing.

Before the streaming, almost nobody was able to make or afford jack shit with music. The money only flowed to a very small and select group of bands/artists who were luck enough to sign good contracts. If anything, streaming (and the internet) made the industry way more profitable, visible, open and acessible to a wider audience of consumers and creators.
 

SneakersSO

Banned
Oct 24, 2017
1,353
North America
First, subscriptions have absolutely devalued the money content-makers could make in other industries. The film industry, prior to WW markets becoming a big factor, were seeing lowered overall sales thanks to the shredding of revenue that physical media provided. Its crazy to think about in a post-Netflix world but DVDs & Blu-Ray sales were a big revenue stream for these companies. Music is another industry who had their entire profit model basically upended with the way music streaming impacted things like album sales & such.

However, more to your specific argument - used games *were* perceived as a devaluation effort for games. But there are 2 ways to perceive used games - the business side, and the consumer side. On the business side, they weren't seeing a cent from used game sales. Gamestop had an okay argument in that trade-ins were going towards new-game sales, but the mileage of that argument was never fully measured. On the consumer side, they were seeing deals on new games that never really got deals for a long time.

Both of these issues were rectified this generation in that the shift of new games sales went from sub-20% at the start of the generation, to over 50% of all game sales at the end of the generation. And consumers started finding less value in used games when publishers decided to start marking off digital games far, far earlier than they ever used to in product lifecycles.

The greater issue that you didn't bring up is the disparity in devaluation - when a consumer bought a used game, they were still paying upwards of 80-90% of the game's full retail cost. Consumers weren't measuring the value of a game versus its asking price compared to another game, simply on pure asking price cause they were all more or less in line. With subs now, a consumer has to decide between spending as low as a $1 a month, or $60 on another game. The disparity there is huge. And as far as we know, there is no data to suggest that lost revenue is being made up anywhere.
 

thecaseace

Member
May 1, 2018
3,218
First of all generally I think it mainly is a fanboy argument, Sony's subscription service has exactly the same model but never gets mentioned in the same terms as Gamepass.

Because Publishers don't set the price of used games, meaning they aren't placing a lower value on them out of the gate.

Because it's your right to sell your own property.

And because selling games used doesn't necessarily devalue them. See Nintendo's used games.


Publishers aren't devaluing games 'out of the gate' generally third party games go onto subscription services after the initial sales window. At a time when the pub is making minimal additional revenue from their initial release, the idea of devaluation here makes no sense when when the revenue being generated is close to zero.
 
OP
OP

Deleted member 58846

User requested account closure
Banned
Jul 28, 2019
5,086
god as someone who was worked a bit in the fringes of the music industry and has close friends who are professional musicians this is just one of the most infuriatingly, bafflingly ignorant things i have ever read on this website (and there is a lot of competition)
Friend, assuming I am ignorant, which I would freely admit to vis-a-vis the music industry (though my understanding is the devaluation came from piracy years before streaming was a thing), the appropriate response would be to help me understand (as several people have done) rather than talk about how frustratingly ignorant I am.
 

MysticGon

One Winged Slayer
Member
Oct 31, 2017
7,285
One you get a complete package that is yours forever. The other is yours until it isn't. Has the same anxieties as digital.

Microsoft finally found a way to shove DRM into games.

#playingthelonggame
 

collige

Member
Oct 31, 2017
12,772
Before the streaming, almost nobody was able to make or afford jack shit with music. The money only flowed to a very small and select group of bands/artists who were luck enough to sign good contracts. If anything, streaming (and the internet) made the industry way more profitable, visible, open and acessible to a wider audience of consumers and creators.
You're conflating streaming with the internet as a whole. The internet is fucking great and has completely democratized music making, yes, but there was a good decade between iTunes becoming a thing and streaming becoming the standard way to listen to music. Spotify in particular completely undersells everyone's music with their pricing models and funnels most of the revenue towards major label artists.
 

the_wart

Member
Oct 25, 2017
2,261
Why do you not quote the interesting part : "what is the maximum amount of money a specific actor is willing and able to pay for the good or service"
This is exactly what we are talking about here.

But that's not a) the market price, which you said before is what we are talking about, and b) the thing that actually matters to anyone.
 

NinjaScooter

Member
Oct 25, 2017
54,123
Lmao @ thinking vinyl sales are making up for the physical sales lost with the transition to digital subscription services. And that's your entire premise. What a fucking poorly thought out thread.
 

Pryme

Member
Aug 23, 2018
8,164
That's pretty much exactly where at least MS is heading, since they are pushing their base extremely hard to Game Pass where they set the terms for dev payouts. Xbox users are going to be much less exposed to games that arent on GP, which will make it even harder for smaller games outside of the service to break through

Marketing will still work as well as it's always had in the real world. Users will be as exposed as they've ever been. Discoverability won't change.

Unless you're making the assertion that MS will punitively demarket indies that aren't on Gamepass.
 

jwhit28

Member
Oct 25, 2017
5,048
Netflix might have devalued movies but we get way more prestige pieces that wouldn't see the light of day on cable or in theaters as subscription services try to differentiate themselves. I hope the same is true for videogames. At the least, Stadia represents another platform for studios like Platinum to possibly secure some exclusive work.
 

NinjaScooter

Member
Oct 25, 2017
54,123
It's not my entire premise. Read.
Jesus, people on this site are in a constant state of hostile antagonism.

Your entire premise hinges on the idea that "we haven't seen content devaluation in other industries!" which is bullshit. You state it as a fact and work from there to try and paint your narrative, never bothering to reinforce or backup your claim.
 
OP
OP

Deleted member 58846

User requested account closure
Banned
Jul 28, 2019
5,086
Your entire premise hinges on the idea that "we haven't seen content devaluation in other industries!" which is bullshit. You state it as a fact and work from there to try and paint your narrative, never bothering to reinforce or backup your claim.
My premise is that devaluation is leveled at one instance of customer value but not the other, and an attempt to understand why.
 

SneakersSO

Banned
Oct 24, 2017
1,353
North America
Friend, assuming I am ignorant, which I would freely admit to vis-a-vis the music industry (though my understanding is the devaluation came from piracy years before streaming was a thing), the appropriate response would be to help me understand (as several people have done) rather than talk about how frustratingly ignorant I am.

Piracy actually had net-benefits that the music industry even admitted to - piracy had a zero-cost barrier of entry for music, which would in turn become potential new fans and album sales. Before you go off and try to map this 1:1 for games, understand that there is no sales data to suggest this is happening, and there is sales data to suggest that *fewer* games are being sold, or rather, that smaller amounts of revenue is being generated than prior.


Streaming music basically made music a 'free' experience, which is exactly what Iwata warned about when looking at what happened with the mobile games market when '$0.00' became the expected asking price. Sub-services, on any platform mind you, can do this. If you extrapolate this logic, that means that a potential reduction in the size/scope/budget of games could be coming if the developers have to depend on a much lower revenue model (which musicians do have to), revenue models which are skewed in overwhelmingly-large favor to the subscription service owner and not any independent content makers who participate in that service.

My premise is that devaluation is leveled at one instance of customer value but not the other, and an attempt to understand why.

No one in the games industry really cares about used game sales anymore because the digital-sales growth of the generation has essentially made them a non-issue. Heck, Gamestop is literally going out of business as we speak specifically because their entire business model relied on used game sales. And back when used games were a huge factor in the industry, this devaluation was ABSOLUTELY brought up by both the industry and people observing it - at the end of the PS3/360 gen, games were shipping with glorified CD keys for MP modes specifically to combat used games.
 

NinjaScooter

Member
Oct 25, 2017
54,123
My premise is that devaluation is leveled at one instance of customer value but not the other, and an attempt to understand why.

to understand why you have to understand that devaluation does exist and is leveled at other industries. Music in particular. The idea that sub services have been bad for the music industry and in particular the artists is not new.
 
OP
OP

Deleted member 58846

User requested account closure
Banned
Jul 28, 2019
5,086
to understand why you have to understand that devaluation does exist and is leveled at other industries. Music in particular. The idea that sub services have been bad for the music industry and in particular the artists is not new.
Wherein the counter argument, which I have followed through on, is that the devaluation occurred before streaming thanks to piracy.
 
OP
OP

Deleted member 58846

User requested account closure
Banned
Jul 28, 2019
5,086
Piracy actually had net-benefits that the music industry even admitted to - piracy had a zero-cost barrier of entry for music, which would in turn become potential new fans and album sales. Before you go off and try to map this 1:1 for games, understand that there is no sales data to suggest this is happening, and there is sales data to suggest that *fewer* games are being sold, or rather, that smaller amounts of revenue is being generated than prior.


Streaming music basically made music a 'free' experience, which is exactly what Iwata warned about when looking at what happened with the mobile games market when '$0.00' became the expected asking price. Sub-services, on any platform mind you, can do this. If you extrapolate this logic, that means that a potential reduction in the size/scope/budget of games could be coming if the developers have to depend on a much lower revenue model (which musicians do have to), revenue models which are skewed in overwhelmingly-large favor to the subscription service owner and not any independent content makers who participate in that service.



No one in the games industry really cares about used game sales anymore because the digital-sales growth of the generation has essentially made them a non-issue. Heck, Gamestop is literally going out of business as we speak specifically because their entire business model relied on used game sales. And back when used games were a huge factor in the industry, this devaluation was ABSOLUTELY brought up by both the industry and people observing it - at the end of the PS3/360 gen, games were shipping with glorified CD keys for MP modes specifically to combat used games.
Thank you. This makes sense. I do agree that the data intensive and interactive nature of video games makes any 1:1 comparison between them and other media slightly difficult.
 

Pryme

Member
Aug 23, 2018
8,164
Probably important to note for a lot of people that being able to sell a game gives rights to the consumer whereas moving games to subscription services takes rights away from the consumer

Subscription services don't take away retail sales, so this argument makes no sense.

Based on your premise, you should be railing against digital game downloads, not subscription services.
 

collige

Member
Oct 31, 2017
12,772
My premise is that devaluation is leveled at one instance of customer value but not the other, and an attempt to understand why.
If game streaming services had a similar pay structure as music streaming services (paying publishers from a pool based on customer engagement) or were positioned as a complete replacement for all game consumption, you would see the exact same criticism.
 

The Albatross

Member
Oct 25, 2017
38,984
Nobody cares about used games so much anymore. Communities like this one used to be strongly against used games as well, or at least, there was a vocal bully minority that was strongly against used games. It's not that dissimilar from the vocal bully minority that is against digital, streaming, and other newer changes to the game industry. But, to the point, it's not *that* long ago when you'd get bullied and criticized if you admitted to buying or selling used games in communities like this one.

I think most people, though, like programs like GamePass. Seems to be a much more positive response to it than negative, at least.

I haven't seen anyone make a legitimate sustained argument that programs like GamePass devalue game development, or what have you. At least, it doesn't seem like a common enough argument. Generally, I don't even think it's true, it just shifts the compensation/profit model from being at the point of sale, to spreading it around. If game developers were taking major losses on GamePass or other programs like it, their games would not be up on GamePass.
 

gofreak

Member
Oct 26, 2017
7,734
This is an interesting counterpoint, actually. The existence of lower priced USED games reinforces the notion that NEW games should still cost however much they cost, that's what you are saying?

Well, there might be that angle, but I mean more that some are happy to spend x on a new game knowing that they can re-sell for y - the resale value adds value to the unit, and helps generate money for future new game purchases, supporting their price. I don't know about the latest trends in the secondary market, but this was recognised in the past as a significant dynamic supporting new game sales.
 

SneakersSO

Banned
Oct 24, 2017
1,353
North America
Wherein the counter argument, which I have followed through on, is that the devaluation occurred before streaming thanks to piracy.

Except the music industry, in many ways, also benefited from piracy. In the piracy scenario, the product evaluation (the value at which people perceived music to be worth), was not $0.00. People were still paying to own music, they just had a venue to steal it if they chose to do so.

Now, with streaming, the value perception of music *is* $0.00 - most people can listen to music for free, any song they want, any album they want. So, before, all those production people and people who worked at record companies, they would get a cut of the, oh I dunno, lets say $10-20 an album would bring in. Now? Thats $0. Cause you don't have to pay for music at all. No one working in music could get away with asking users to pay money now. THATS the devaluation people speak of.
 

byDoS

Member
Oct 25, 2017
4,192
You're conflating streaming with the internet as a whole. The internet is fucking great and has completely democratized music making, yes, but there was a good decade between iTunes becoming a thing and streaming becoming the standard way to listen to music. Spotify in particular completely undersells everyone's music with their pricing models and funnels most of the revenue towards major label artists.

This was the reality before the streaming. The difference is that small labels and independent artists make some money nowadays (with distribution), even if it's not much. In the past they were totally reliant on shows and word of mouth opinions. I listen to music and get to know artists to an extent that I'd never known if it wasn't for the streaming, and that lead me to buy T-shirts, tickets to gigs etc.

And the format to capitalize the music industry also has changed, which is natural, given how the market has evolved from a regional "offline" audience to become a global entertainment "online" industry.

Internet is just another tool in this process - and a wonderful one.
 

Kill3r7

Member
Oct 25, 2017
24,403
The most popular games on the planet today are F2P games or cheap mobile games and y'all are arguing subscriptions are devaluing games.
 

Matty H

Member
Oct 31, 2017
1,107
The model of purchasing individual games creates winners, such as an individual developer that becomes an overnight millionaire, and losers such as a mid-sized studio that goes out of business.

A subscription service like Netflix is much more sustainable because revenue is much more predictable and the service can pay the developers enough for them all to make a small profit. This model requires the developers to negotiate a fair price up front and manage their business so they make the game within a reasonable budget.
 

Kill3r7

Member
Oct 25, 2017
24,403
can you get traditional AAA games for $0? Because those are the games we're talking about. Games like Gears 5 and outer worlds being practically given away for a couple bucks.

There were rumors earlier this year that Activision has been considering making COD F2P. So I doubt it gets much bigger than that.
 

hikarutilmitt

Member
Dec 16, 2017
11,408
It does count, though. Aftermarket is more difficult to really gauge since time is a factor in the sale ($60 new vs $55 used? I'll take the new, thanks) but it still devalues the games, not to mention buying used doesn't give money to the developer at all.
 

collige

Member
Oct 31, 2017
12,772
This was the reality before the streaming.
This is true, but the revenue model underpinning wasn't. During the iTunes days (or now with artists selling primarily on Bandcamp). Because Spotify's entire royalty pool is shared, it's impossible for a customer to have direct engagement with the music like they can with a direct purchase.

The rest of your post is showing the exact problem. Listening to music (the actual fucking product) has now become an advertising method for other revenue streams that haven't become completely devalued. The irony is that while you're talking about the industry being "global", most money artists are getting (assuming they aren't big playlist staples) is gonna be from offline sources like local concerts.

Leaving these here as references:

There were rumors earlier this year that Activision has been considering making COD F2P. So I doubt it gets much bigger than that.

In that scenario, they would still be making their revenue through in game MTX. Not really sure what that has to do with subscription services.
 

SneakersSO

Banned
Oct 24, 2017
1,353
North America
Thank you. This makes sense. I do agree that the data intensive and interactive nature of video games makes any 1:1 comparison between them and other media slightly difficult.

The cost of game development versus other mediums, with the exception of film, is simply incompatible. Games simply cost too much to both make and maintain - the majority of games that release now are not intended to be 'completed' for months or years, with users expecting ongoing development support for a long, long time.

In large part, the reason 'premium games' have continued to evolve the way they have - targeting higher fidelity, more network intensive experiences built to scale, with production quality in music & animation that rivals some of the best film has to offer - all of this has been allowed due in large part because of the revenue model and product evaluation 'premium games' have had for as long as they have.

I'm looking forward to seeing the industry as it adjusted to the overall lower revenue that will be generated for the cost of entry; going from $60 new cost of entry to less than $5 is massive. Its literally over a 90% loss. And if that sub-revenue is to be shared amongst a myriad of developers....
 
Oct 25, 2017
3,240
There were rumors earlier this year that Activision has been considering making COD F2P. So I doubt it gets much bigger than that.
they will never do this for CoD launches. Those games sell like 15 million copies in a couple months. And they also can't really go f2p months later because that will train gamers not to buy cod at launch anymore.
 

Cess007

Member
Oct 27, 2017
14,089
B.C., Mexico
Communities like this one used to be strongly against used games as well, or at least, there was a vocal bully minority that was strongly against used games

What? I remember people dismissing the concern for the lost of used games back when they were defending the OG XBO plan (mostly as "I don't buy used", "I don't lend/sell/exchange my games", etc) But I don't remember even a small minority being against used games.
 

The Albatross

Member
Oct 25, 2017
38,984
What? I remember people dismissing the concern for the lost of used games back when they were defending the OG XBO plan (mostly as "I don't buy used", "I don't lend/sell/exchange my games", etc) But I don't remember even a small minority being against used games.

Back in the mid to late 2000s there was a vocal minority that believed / shamed people into thinking that buying used games was stealing money from developers. It was a wild world.
 

K Samedi

Member
Oct 27, 2017
4,989
It isn't feasable, period. I would love a sub model but the reality is you will only get maybe older games on a sub and that's ok. If companies can't earn much from subs than why would they even support it?
 

werezompire

Zeboyd Games
Verified
Oct 26, 2017
11,322
can you get traditional AAA games for $0? Because those are the games we're talking about. Games like Gears 5 and outer worlds being practically given away for a couple bucks.

Not traditional, but I imagine a lot of F2P games have lifetime development budgets that are easily in the AAA range.
 

The Albatross

Member
Oct 25, 2017
38,984
WHUUUUT? JFC, I am glad I misses those times then. Like, wth!

It's tough to find original wars over stupid shit like this, but there's a good number of articles "discussing both sides" about it... it's just hilarious in retrospect. Of course like most debates today, you have people take wildly crazy positions in defense of their favorite game developers / publishers / console makers.

Ip0XiMC.png

(literally someone spent time making this...)

Wired: "GameStop the ScapeGoat: Why Used Games Debate Isn't So Simple" (2008)

Tom's Guide: "Does the purchase of used games hurt the gaming industry? Ask yourself that question, and then five of your friends – you will more than likely get a mixed bag of answers." (2010)

Destructoid: "The Entitlement of Publishers: Used games Pt. 1" (2009, this is mostly unreadable today)

GameSpot User Discussion: "Do game devs lose money on used games?" (2006)

GameRant: "GameStop says Publishers are finally starting to understand used game sales"

Ars: ""We hope people understand that when the game's bought used we get cheated" (2010, Some guy from THQ)


Unfortunately, it's impossible to find forum wars over this stuff, but it was a real hot debate 10+ years ago. 20+ years ago, there were similar (in essence, not scope) debates around the ethics of game rentals... But the internet wasn't big enough for it to get outside of a few really niche communities.

I think that the annual firesales you see on Steam, Xbox Live, PSN, etc., kinda put a lot of those debates to bed thankfully. After some growing pains (like games coming bundled with 1-time use codes that went after used games by deactivating features of the game), publishers started selling games on digital storefronts heavily discounted, whether to combat used sales or lagging sales of games, or just to keep up with the joneses, who knows. It did kinda lead to this environment we have today of post-sale revenue like MTX, Annual Passes, and things like that. I think they're all related.

I just think the debate was so hilariously stupid.
 
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Flandy

Community Resettler
Member
Oct 25, 2017
3,445
The $1 a month for Gamepass is a temporary deal targeted at new users. It's a standard user acquisition move that most companies use.
These deals won't be there forever, no more than anyone expects Apple TV + to be free forever to subscribers.




Nope, because ideally that customer would never be offered a $1 deal again.

Amazon gives away cheap Prime and Audible deals for new subs. I am never eligible for any of these since I've been on Prime since 2011.

You can be sure I won't get any more free months of Apple TV + when my free year ends in November 2020.
It's funny you mention the bit about audible since I've been able to get the promos that were meant for "new" subs only a few times. In the last 2 months I got not one but two letters from amazon in the mail with a 50% off coupon for 3 months. They also sent me $10 kindle credit for whatever reason lol
 

blitzblake

Banned
Jan 4, 2018
3,171
Why would I pay $60 for a game that's coming to a service I already subscribe to? Isn't that the definition of devaluation?

There's a list of games I'd like to play but they're perfect "stocking filler" for game pass so I'm waiting for that. They might not appear, but I'd rather wait than buy the games, even at a discount. If game pass didn't exist I'd probably had bought these games by now.


Also just because something is successful (Spotify/netflix) doesn't mean it hasn't devalued the content. Fast food is extremely successful but I'd also say it's devalued quality ingredients.
 
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Pryme

Member
Aug 23, 2018
8,164
It's funny you mention the bit about audible since I've been able to get the promos that were meant for "new" subs only a few times. In the last 2 months I got not one but two letters from amazon in the mail with a 50% off coupon for 3 months. They also sent me $10 kindle credit for whatever reason lol

Lucky you, then. I've never been able to get on any of those.