Possible ways to gain second-hand revenues for developers. *rename
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Bagel seed
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How do you handle the post 90 day thing for HDD installed games? If there's no disc check anymore then everyone would feel obligated to sell their games once 90 days hits. The no disc check feature should be limited to digitally bought games to make things easier.
Bagel seed
Veteran
Here's my solution that's minimal DRM, gets more second hand revenue for devs, doesn't completely cut out Gamestop, but does sort of kill private sales.
All games need to be activated online once, but
-no periodic DRM checks
-Install to HDD and play the game without a disc check
The solution is to charge an online activation price, but have it decrease based on how old the game is. We keep the game at full retail launch price for the first 60 days. Then afterwards the price comes down slowly over the course of a year or so until it hits bargain bin prices. Basically at the rate games typically come down in price at retail currently.
To cut Gamestop in on the deal, let them offer vouchers that give discounts upon activation for any used game bought from them. For example:
1) Joe Blow sells his copy to GS for $5 (this is a constant)
2) GS sells the copy for $15 with a voucher of $20 (24 hr time limit to use)
3) Buyer uses the code to pay $40 ($60-$20) to unlock the game
4) Buyer saved $5 off of the current retail pricing of $60
So as the game gets older, the retail and online activation prices drop accordingly, while trade-ins and GS profit remain roughly the same: $5 and $10 per title. The typical savings for buying used will be $5-10, depending on retailers pricing.
Addendum:
-If you keep the game disc, you get a discount off every DLC for the game, or some future freebies
-If you want to lend a game to a friend, you have to deactivate it online before you give it to him so he doesn't have to pay up. Your local HDD copy will no longer work until you reactivate it on your machine.
All games need to be activated online once, but
-no periodic DRM checks
-Install to HDD and play the game without a disc check
The solution is to charge an online activation price, but have it decrease based on how old the game is. We keep the game at full retail launch price for the first 60 days. Then afterwards the price comes down slowly over the course of a year or so until it hits bargain bin prices. Basically at the rate games typically come down in price at retail currently.
To cut Gamestop in on the deal, let them offer vouchers that give discounts upon activation for any used game bought from them. For example:
1) Joe Blow sells his copy to GS for $5 (this is a constant)
2) GS sells the copy for $15 with a voucher of $20 (24 hr time limit to use)
3) Buyer uses the code to pay $40 ($60-$20) to unlock the game
4) Buyer saved $5 off of the current retail pricing of $60
So as the game gets older, the retail and online activation prices drop accordingly, while trade-ins and GS profit remain roughly the same: $5 and $10 per title. The typical savings for buying used will be $5-10, depending on retailers pricing.
Addendum:
-If you keep the game disc, you get a discount off every DLC for the game, or some future freebies
-If you want to lend a game to a friend, you have to deactivate it online before you give it to him so he doesn't have to pay up. Your local HDD copy will no longer work until you reactivate it on your machine.
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You know, I wasn't even talking from a second hand perspective but as the original purchaser of the game. But this all applies to the second hand market as well.
Brit, you bring up a good point about sports games and how gamers will disregard the last year's purchase for the newer versions. And it doesn't make much economic sense for EA to keep those servers up if the gamers have moved on. It's something that I guess is unique to sports games because I still see a lot of people playing 5 year old FPS's online. I would be ok with having a subscription type service for Madden or Fifa where they launch a new version every year but just have it in downloadable form and have gamers play a flat fee for access each quarter or month. Even if the base game (i.e. single player content) costs $40 and you tack on a $5 - $10 monthly charge or $30 for a season pass or whatever they can still make a ton of money. Those who don't want the online experience can still get the updated game and roster is disc form for $40 - $50 every year and those that subscribe get it for either nothing (since they are subscribers) or at a discounted price so they are left happy. I don't play a lot of sports games so am personally not interested in the genre, but realize it is a hugely important one and that millions of gamers must get the new version of their favorite franchise each year.
As far as the second hand market is concerned it's tricky to come up with solutions that don't screw at least one of the parties involved. I'm a fan of having the disc with the content in my possession so physical media is important to me. It's also obviously important to businesses like Gamestop since so many people sell their games there and people buy used games there. I guess the industry could develop policies disallowing the selling of used games in retail outlets for a period of time as others have suggested. This allows for more sales at full price of the new game so used game sales don't hinder new game sales in the first couple months. Devs/pubs could charge separately for different parts of the game. If the game doesn't have a comprehensive single player aspect then charge $30 - $50 for the SP version and $20 - $30 for the online activation of the online content and let the customers decide which way to go. If it's a very comprehensive single player experience then charge normal price and if online content is also good charge an online activation on top of that; though that screws the customer.
As far as purchasing the content and then having it supported I really do believe devs should make a commitment to ensure the game is supported for a lengthy period of time, at a bare minimum through the life of the console. It may cost them extra money sure, but that's one of the costs of doing business. Having it required by law just means there is actual consumer protections. I do realize such a law is highly improbable in the US.
Brit, you bring up a good point about sports games and how gamers will disregard the last year's purchase for the newer versions. And it doesn't make much economic sense for EA to keep those servers up if the gamers have moved on. It's something that I guess is unique to sports games because I still see a lot of people playing 5 year old FPS's online. I would be ok with having a subscription type service for Madden or Fifa where they launch a new version every year but just have it in downloadable form and have gamers play a flat fee for access each quarter or month. Even if the base game (i.e. single player content) costs $40 and you tack on a $5 - $10 monthly charge or $30 for a season pass or whatever they can still make a ton of money. Those who don't want the online experience can still get the updated game and roster is disc form for $40 - $50 every year and those that subscribe get it for either nothing (since they are subscribers) or at a discounted price so they are left happy. I don't play a lot of sports games so am personally not interested in the genre, but realize it is a hugely important one and that millions of gamers must get the new version of their favorite franchise each year.
As far as the second hand market is concerned it's tricky to come up with solutions that don't screw at least one of the parties involved. I'm a fan of having the disc with the content in my possession so physical media is important to me. It's also obviously important to businesses like Gamestop since so many people sell their games there and people buy used games there. I guess the industry could develop policies disallowing the selling of used games in retail outlets for a period of time as others have suggested. This allows for more sales at full price of the new game so used game sales don't hinder new game sales in the first couple months. Devs/pubs could charge separately for different parts of the game. If the game doesn't have a comprehensive single player aspect then charge $30 - $50 for the SP version and $20 - $30 for the online activation of the online content and let the customers decide which way to go. If it's a very comprehensive single player experience then charge normal price and if online content is also good charge an online activation on top of that; though that screws the customer.
As far as purchasing the content and then having it supported I really do believe devs should make a commitment to ensure the game is supported for a lengthy period of time, at a bare minimum through the life of the console. It may cost them extra money sure, but that's one of the costs of doing business. Having it required by law just means there is actual consumer protections. I do realize such a law is highly improbable in the US.
My solution (I don't know if feasible):
Rules:
- All games need to be played from hard disk (aka: only installed games can be playable)
- An online activation is required before installation
Then:
- An offline mode can be allowed, but before going offline, you need to communicate with Xbox Live servers for requesting that mode (from an in-game option).
- if you activate offline mode, and a friend want to play that game on another console, it will be impossible because it requires to be installed and activated before, and Xbox Live will know the ID game is offline in another Xbox One.
- If you want to lend the game to a friend you can request a "special code", the code will ask for a number of days:
* 5 days = free
* 15 days = small fee
* 20 days = etc
Your installed game will be "locked". Your friend will "semi-activate" your game with the code in another console and he can play the game for those days, always online. It can work for rental too.
- If you want to sell your game, you will request it to Xbox Live servers, your installed game will be deleted and you can sell the game disc to Gamestop, and gamestop will request a new activation number for a new user (smaller price).
Rules:
- All games need to be played from hard disk (aka: only installed games can be playable)
- An online activation is required before installation
Then:
- An offline mode can be allowed, but before going offline, you need to communicate with Xbox Live servers for requesting that mode (from an in-game option).
- if you activate offline mode, and a friend want to play that game on another console, it will be impossible because it requires to be installed and activated before, and Xbox Live will know the ID game is offline in another Xbox One.
- If you want to lend the game to a friend you can request a "special code", the code will ask for a number of days:
* 5 days = free
* 15 days = small fee
* 20 days = etc
Your installed game will be "locked". Your friend will "semi-activate" your game with the code in another console and he can play the game for those days, always online. It can work for rental too.
- If you want to sell your game, you will request it to Xbox Live servers, your installed game will be deleted and you can sell the game disc to Gamestop, and gamestop will request a new activation number for a new user (smaller price).
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Not sure I understand what you mean but if your saying that by lowering the value of a used trade in, that that could in fact lower the perceived value of a new game, I agree it's a good point.
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