Xbox One in trouble.

[madtza]

Game prices won't be going down. Second hand Xbox one games will be very expensive though.

Yeah, haven't heard much about prices on games but if this was a strategy MS had to take, my question is would this make you reconsider?

It's a long shot but just want see if there's any saving grace left for MS(looking at the initial reactions).

 

[Jab]

Could this mean cheaper games for the XOne? Let's say they were matched up to PC games(since it's effectively turned into one), would that make you reconsider it over the PS4? +-300-400 Vs +-500-700 for new releases?

The whole purpose of the always on IS to keep the prices high

 

[madtza]

The whole purpose of the always on IS to keep the prices high

How so?

More money from 2nd hand games for the Devs/Pubs and fact that they'll be less chance for games to be pirated could mean more revenue for them. Obviously there are other cost factors to be considered but if the announced "trade-offs" result in lower cost of ownership, would you consider it?

 

[Ancalagon]

How so?

More money from 2nd hand games for the Devs/Pubs and fact that they'll be less chance for games to be pirated could mean more revenue for them. Obviously there are other cost factors to be considered but if the announced "trade-offs" result in lower cost of ownership, would you consider it?

If MS lowers the price of games - permanently - I will eat my shoes.

Game prices have been steadily going down in recent years due to them remaining static at $60 US while inflation has devalued the dollar. We pay less in real terms than we did 10 years ago. The game industry is very tight right now, with slim to non existent margins. If used games were all that were required to regain healthier margins, they would have done so ages ago. The PC has not had used games for quite a while, and that has not helped margins much.

Think about how many used game sales there would need to be for the kind of drop you propose - ie a near 50% drop in price. Not going to happen.

 

[Jab]

How so?

More money from 2nd hand games for the Devs/Pubs and fact that they'll be less chance for games to be pirated could mean more revenue for them. Obviously there are other cost factors to be considered but if the announced "trade-offs" result in lower cost of ownership, would you consider it?

Because if people can't buy used games for less, they are suppose to buy it at the higher new prices.

 

[Maverick Jester]

How so?

More money from 2nd hand games for the Devs/Pubs and fact that they'll be less chance for games to be pirated could mean more revenue for them. Obviously there are other cost factors to be considered but if the announced "trade-offs" result in lower cost of ownership, would you consider it?

What you are forgetting, is the exceedingly limited second hand games market the Xbox One will have:

• You can only sell the game to a friend on Xbox Live, that has been said friend for 30 days.
• You can only sell the game once in it's lifetime.

That's hugely limiting to the second hand market...

 

[Ancalagon]

What you are forgetting, is the exceedingly limited second hand games market the Xbox One will have:

• You can only sell the game to a friend on Xbox Live, that has been said friend for 30 days.
• You can only sell the game once in it's lifetime.

That's hugely limiting to the second hand market...

They dont want a second hand market at all.

 

[Garson007]

The PC has not had used games for quite a while, and that has not helped margins much.

What? The introduction of steam has only seen the PC industry grow.

Think about how many used game sales there would need to be for the kind of drop you propose - ie a near 50% drop in price. Not going to happen.

I think you misunderstand the size of the secondary market. Secondly, nobody talked about stagnant prices. With the XBO being a digital console they can offer sales on games, so as to maximise profits. What people don't seem to understand is that no manufacturing costs are involved, so any extra product sold is pure profit.

 

[B3ns]

the playstation allows you to download games as well, no need for the disc if thats the way you want to go.

Edit: just watched a vid where the guy downloads killzone

 

[Maverick Jester]

I think you misunderstand the size of the secondary market. Secondly, nobody talked about stagnant prices. With the XBO being a digital console they can offer sales on games, so as to maximise profits. What people don't seem to understand is that no manufacturing costs are involved, so any extra product sold is pure profit.

All irrelevant, considering the Xbox One resale policy...

 

[Garson007]

All irrelevant, considering the Xbox One resale policy...

Wha... What? I don't sell my games and I don't buy second hand. This is all win for me, the same way Steam was a win for me. Now the money also goes to the publisher rather than cash crusaders. If the resultant sale is going to be cheaper than the second hand game is still to be seen (looking at steam it's variable), but at least I'd be assured of the availability.

the playstation allows you to download games as well, no need for the disc if thats the way you want to go.

Sony is going to go in from both sides and that gives publishers that publish on their console less options in terms of sales, especially if forced to compete on a second hand market. While MS is also offering disc copies, they really want to kill it the same way Steam did for the PC market.

 

[madtza]

If MS lowers the price of games - permanently - I will eat my shoes.

Game prices have been steadily going down in recent years due to them remaining static at $60 US while inflation has devalued the dollar. We pay less in real terms than we did 10 years ago. The game industry is very tight right now, with slim to non existent margins. If used games were all that were required to regain healthier margins, they would have done so ages ago. The PC has not had used games for quite a while, and that has not helped margins much.

Think about how many used game sales there would need to be for the kind of drop you propose - ie a near 50% drop in price. Not going to happen.

Lol @ "...eat my shoes."

Do you really think the current used game market isn't so big that they would go the route they're going with the XOne or are they trying to milk the system?

The PC market is prone to piracy, that could be a reason why they haven't raised their margins in that space.

Titles in the PC market have actually gone up, they used to be around the 300 margin but now up to 350 though they do end up in the bargain bin relatively quickly.

 

[Ancalagon]

What? The introduction of steam has only seen the PC industry grow.

What does Steam have to do with used games?

I think you misunderstand the size of the secondary market. Secondly, nobody talked about stagnant prices. With the XBO being a digital console they can offer sales on games, so as to maximise profits. What people don't seem to understand is that no manufacturing costs are involved, so any extra product sold is pure profit.

When is the last time you bought a used console game? In fact, name me the shops in SA where you can get one - I can only think of one.

Like MS currently does with the XBL marketplace? yeah, they dont like sales very much. Steam is the only company forward thinking enough to do so, but remember the other thing that helps Steam is that their product catalogue is so huge.

Besides, you are thinking about this like a rational young gamer. Think about it from the point of view of a Microsoft exec - likely you came from a business, not gaming background, you dont know what Steam is but you think it drives turbines, you probably dont own an Xbox but maybe your grand kids do. They do not understand.

Lol @ "...eat my shoes."

Do you really think the current used game market isn't so big that they would go the route they're going with the XOne or are they trying to milk the system?

The PC market is prone to piracy, that could be a reason why they haven't raised their margins in that space.

Titles in the PC market have actually gone up, they used to be around the 300 margin but now up to 350 though they do end up in the bargain bin relatively quickly.

They arent trying to siphon off a stream of cash from used sales - they are hoping to prevent used sales entirely without acting like they are.

Why would piracy in the PC market be a good reason to not raise prices? You raise prices to cover your costs, and if piracy is driving your costs per unit higher by driving average sales lower, then you raise prices.

Over how many years has that increase happened?

 

[madtza]

What you are forgetting, is the exceedingly limited second hand games market the Xbox One will have:

• You can only sell the game to a friend on Xbox Live, that has been said friend for 30 days.
• You can only sell the game once in it's lifetime.

That's hugely limiting to the second hand market...

Well I guess this would mean more new games to be purchased and if you can't get more people to buy them current prices then you lower them enough to get more sales and whatever crumbs from the used market.

Another question would be, are we going to see higher prices for games on the PS4? To me it looks like it's the Pubs(read EA) that are behind this with MS in bed with them and Sony out of favour(except with their in-house studios). All speculation but I'm just wondering how Sony were able to get out of this when they initially said "it was up to the publishers" when asked about 2nd hand games.

 

[B3ns]

Personally i know of 2 game shops that do second hand games. The last second hand game i bought was uncharted 2 for R 80.00.

If the xbox live & psn have the specials that steam have i think it will really hurt the second hand market. the other day i got Batman arkum asylum and arkum city for dirt cheap. $5 and $8 respectively.

If they dont have those type of specials then 2nd hand games are still going to be better value for money.

Only time will tell i guess

 

[mouks]

Wha... What? I don't sell my games and I don't buy second hand. This is all win for me,

Selfish Much :wtf: Gaming is an expensive hobby as it is.

When Microsoft first announced their gaming restriction and internet requirement crap the very first thought that came to my mind was "What about gamers who can't afford new game and don't have an Internet connection"

Who is their target market, The Rich of The Gamer?

What if I live in an area that does not support adsl or 3G?

 

[Polymathic]

I like everything about the Xbox One except their stupid DRM system, if they can fix it then there is hope

 

[AlphaJohn]

Only thing that can save Xbox One is http://research.microsoft.com/en-us/projects/illumiroom/

 

[Garson007]

What does Steam have to do with used games?

Everything. You can't sell, lend or exchange your digital copies. It also gives publishers the opportunity to adjust prices so that they can maximise profits.

When is the last time you bought a used console game? In fact, name me the shops in SA where you can get one - I can only think of one.

I wasn't talking about South Africa. I agree the second hand market is pretty much dead here.

Like MS currently does with the XBL marketplace? yeah, they dont like sales very much. Steam is the only company forward thinking enough to do so, but remember the other thing that helps Steam is that their product catalogue is so huge.

Publishers have to sign off on sales, not Valve. They will not have sales if there exists a competing second hand market and the retail prices cannot be adjusted. Again, it's about maximising profit.

Besides, you are thinking about this like a rational young gamer. Think about it from the point of view of a Microsoft exec - likely you came from a business, not gaming background, you dont know what Steam is but you think it drives turbines, you probably dont own an Xbox but maybe your grand kids do. They do not understand.

Trust me, the suits know how profitable sales are.

 

[Garson007]

Selfish Much :wtf: Gaming is an expensive hobby as it is.

When Microsoft first announced their gaming restriction and internet requirement crap the very first thought that came to my mind was "What about gamers who can't afford new game and don't have an Internet connection"

Who is their target market, The Rich of The Gamer?

What if I live in an area that does not support adsl or 3G?

Their target market is the one that owns a HDTV and has an internet connection. Console gaming is also not a very expensive hobby, all things considered. If you can't fit the target market then don't buy the thing.