Used games and MMOs are “bright spots” in games
Monday, February 6th, 2006Filed under: Gamecube, PC, PlayStation 2, Xbox, Xbox 360, Online, RPGs
src="http://www.joystiq.com/media/2006/02/usedgamesjoy.jpg" alt="" />The New York Times’ Seth Schiesel
looks at the recent poor performance of EA and the href="http://www.joystiq.com/2006/02/07/eas-mistake-foreshadows-future-pain/">anticipated performance of other
domestic publishers. While much of the poor performance may be attributed to common culprits, like the dearth of Xbox
360 consoles and transitional difficulties, there is one other thing.
Schiesel writes, "… game
publishers in the United States are still almost entirely in the same business they have been in for 20 years: selling
new games at retail." Subscription-based MMOs and used-games are both profitable avenues that represent "a
major challenge to the publishers’ traditional business model."
Game
href="http://www.joystiq.com/2006/01/03/used-games-a-marginal-business/">retailers thrive on the used-games market;
even big-box stores like Best
Buy want to get in on the action, much to the chagrin of
href="http://www.joystiq.com/2005/09/21/vp-of-epic-games-mad-about-pre-owned-game-policies/">developers and
publishers everywhere. For now, the bad blood between retailers and publishers will continue: Gamestop’s most recent
quarterly earnings were "eye-popping" while EA’s shares are down 11 percent over the period.
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border="1" alt="" />When EA announced disappointing earnings late last week, the company was quick to offer up