How Gamestop Reduces Developers' Sales

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30 comments, last by landlocked 12 years, 11 months ago

The right of a consumer to sell items he bought is absolute, if i buy a copy/license of a game i own that copy/license and have the right to sell/transfer it to someone else if i see fit to do so,


Are you 100% sure licenses are protected under that? I know I have dealt with a wide range of licenses that had a non-transfer clause, and it is rather logical as a license is a contract between two 'people', and it seems rather logical to allow both parties to agree that their contract is between themselves, and one side can't randomly hand their half off to someone else.
Old Username: Talroth
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The market is really not the game. It's the micro-transactions within the game. So if someone buys your game second-hand, you can still make money off the online purchases, subscriptions, and whatever other digital extras that are for said game. I think that complaning about GameStop and other businesses like it is just bad business. Matter of fact, you're probably not aware of where the money is actually flowing from.

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[quote name='SimonForsman' timestamp='1306019463' post='4814013']
The right of a consumer to sell items he bought is absolute, if i buy a copy/license of a game i own that copy/license and have the right to sell/transfer it to someone else if i see fit to do so,


Are you 100% sure licenses are protected under that? I know I have dealt with a wide range of licenses that had a non-transfer clause, and it is rather logical as a license is a contract between two 'people', and it seems rather logical to allow both parties to agree that their contract is between themselves, and one side can't randomly hand their half off to someone else.
[/quote]

Don't confuse whats right with whats legal, If its made clear that the license is non transferable prior to the sale then thats fine, this is fairly rare though, usually its information that is hidden away in a shrinkwrapped EULA that you can't even see until after they have your money or in some cases its not even in the EULA itself but in the terms of service (for things like steam) and while the practice may be legal its definitly not moral. wether or not shrinkwrapped EULAs qualify as legally binding contracts is debatable, if a consumer is lead to believe that he is buying a copy(like he does when he buys a book or a movie) then even trying to get the user to accept to a onesided EULA that provides no benefits over owning a copy is just plain wrong. (Yes i know that "everyone" does it and that it is considered legal, but it is effectivly a bait and switch scam , except the product is switched after the customer has payed for it and gone home allready which makes it far worse) (Some companies such as Microsoft are quite clear with the primary restrictions on their various offerings prior to purchase, but they're pretty much alone)
[size="1"]I don't suffer from insanity, I'm enjoying every minute of it.
The voices in my head may not be real, but they have some good ideas!

[quote name='SimonForsman' timestamp='1306019463' post='4814013']
The right of a consumer to sell items he bought is absolute, if i buy a copy/license of a game i own that copy/license and have the right to sell/transfer it to someone else if i see fit to do so,


Are you 100% sure licenses are protected under that? I know I have dealt with a wide range of licenses that had a non-transfer clause, and it is rather logical as a license is a contract between two 'people', and it seems rather logical to allow both parties to agree that their contract is between themselves, and one side can't randomly hand their half off to someone else.
[/quote]

I'm surprised this guy is getting slammed. Quite frankly I agree with him in that it does cost developers money. Games should have non-transfer clauses just like other software.. and it's ironic that the same people attacking the OP would jump to the defense of any software company if some dude was trying to lets say.. resell their copy of Photoshop or 3ds Max. Most of the arguments I read make equally solid arguments for software pirates.. (I wasn't going to pay full price anyway) Comparing the practice to DVD rentals is apples to oranges - DVD rental companies either a) pay a larger upfront flat fee for dvds or b) participate in a revenue sharing agreement with studios to rent out their titles

It shouldn't have taken this long to talk about media vs licenses, and license transferability in a business and law forum. For this practice to be allowed there has to be nothing in the game licensing itself that precludes transfer of that license. Calling it stealing is only true if they are indeed violating a no-transfer agreement.

[quote name='Luckless' timestamp='1306029456' post='4814065']
[quote name='SimonForsman' timestamp='1306019463' post='4814013']
The right of a consumer to sell items he bought is absolute, if i buy a copy/license of a game i own that copy/license and have the right to sell/transfer it to someone else if i see fit to do so,


Are you 100% sure licenses are protected under that? I know I have dealt with a wide range of licenses that had a non-transfer clause, and it is rather logical as a license is a contract between two 'people', and it seems rather logical to allow both parties to agree that their contract is between themselves, and one side can't randomly hand their half off to someone else.
[/quote]

I'm surprised this guy is getting slammed. Quite frankly I agree with him in that it does cost developers money. Games should have non-transfer clauses just like other software.. and it's ironic that the same people attacking the OP would jump to the defense of any software company if some dude was trying to lets say.. resell their copy of Photoshop or 3ds Max. Most of the arguments I read make equally solid arguments for software pirates.. (I wasn't going to pay full price anyway) Comparing the practice to DVD rentals is apples to oranges - DVD rental companies either a) pay a larger upfront flat fee for dvds or b) participate in a revenue sharing agreement with studios to rent out their titles

It shouldn't have taken this long to talk about media vs licenses, and license transferability in a business and law forum. For this practice to be allowed there has to be nothing in the game licensing itself that precludes transfer of that license. Calling it stealing is only true if they are indeed violating a no-transfer agreement.
[/quote]

I don't see how you can compare reselling with piracy, we can sell our CDs and DVDs, without the artists/studios getting a dime, we can sell our books without the authors getting anything, why should our games be any different ? non transfer clauses only makes sense if you sell a discounted license (Student license, OEM license, etc), for anything else its just pure greed. (photoshop licenses are transferable btw just like licenses for all other adobe software (They only restrict it for OEM and Educational licenses, as it should be))
[size="1"]I don't suffer from insanity, I'm enjoying every minute of it.
The voices in my head may not be real, but they have some good ideas!
I'm surprised this guy is getting slammed. Quite frankly I agree with him in that it does cost developers money. Games should have non-transfer clauses just like other software..
Publishers could add these clauses to their boxed products if they wanted to... but they don't (for the most part)... I'm guessing there's a business decision behind that rather than just incompetence on their parts.

It's a balance between harm and benefits.
For a real-world example, police will often let certain criminals operate freely in exchange for the benefit of information on others. You don't want to deal with the scum, but in the end it's more profitable then shutting them out completely.
Likewise, publishers could decide to stop dealing with game-stop, but they've obviously done the math and decided that they're still coming out further ahead than if they shut them out completely.


The OP is getting slammed because this debate was a hot topic years ago -- there's a ton of literature on the subject that explains the reality of the situation -- and the OP has not bothered doing his homework and is instead presenting a clearly biased and sensationalist ("stealing", really?) rant to us from behind a facade of professionalism with his fake studio.
[edit]It seems the original post has been edit to use a much less aggressive tone than when it first appeared, and the guy's company name/position has been redacted. Take that into account when viewing the negative responses he got.[/edit]


Most people would probably agree that it likely costs developers/publishers money, but none of us can really say how much, and whether that much is actually a big problem or not.
Equating every re-sale as "1 lost sale" is just as fallacious as the RIAA/MPAA's claims that "1 download equals 1 lost sale". Yes that's not a defense for piracy, don't get side-tracked, but it shows the difficulty in accurately measuring the cost of "lost sales". As mentioned earlier, it's complicated further by the fact that these "lost sales" are actually performing marketing for you that will generate some extra sales as well.
Also, in some cases developers might not even get money directly from sales to begin with (depending on the contract with the publisher), so losing sales can't possibly be "theft" from them!

[quote name='Michael Tanczos' timestamp='1306033244' post='4814087']
[quote name='Luckless' timestamp='1306029456' post='4814065']
[quote name='SimonForsman' timestamp='1306019463' post='4814013']
The right of a consumer to sell items he bought is absolute, if i buy a copy/license of a game i own that copy/license and have the right to sell/transfer it to someone else if i see fit to do so,


Are you 100% sure licenses are protected under that? I know I have dealt with a wide range of licenses that had a non-transfer clause, and it is rather logical as a license is a contract between two 'people', and it seems rather logical to allow both parties to agree that their contract is between themselves, and one side can't randomly hand their half off to someone else.
[/quote]

I'm surprised this guy is getting slammed. Quite frankly I agree with him in that it does cost developers money. Games should have non-transfer clauses just like other software.. and it's ironic that the same people attacking the OP would jump to the defense of any software company if some dude was trying to lets say.. resell their copy of Photoshop or 3ds Max. Most of the arguments I read make equally solid arguments for software pirates.. (I wasn't going to pay full price anyway) Comparing the practice to DVD rentals is apples to oranges - DVD rental companies either a) pay a larger upfront flat fee for dvds or b) participate in a revenue sharing agreement with studios to rent out their titles

It shouldn't have taken this long to talk about media vs licenses, and license transferability in a business and law forum. For this practice to be allowed there has to be nothing in the game licensing itself that precludes transfer of that license. Calling it stealing is only true if they are indeed violating a no-transfer agreement.
[/quote]

I don't see how you can compare reselling with piracy, we can sell our CDs and DVDs, without the artists/studios getting a dime, we can sell our books without the authors getting anything, why should our games be any different ? non transfer clauses only makes sense if you sell a discounted license (Student license, OEM license, etc), for anything else its just pure greed. (photoshop licenses are transferable btw just like licenses for all other adobe software (They only restrict it for OEM and Educational licenses, as it should be))
[/quote]

This is a business and law of game development forum - The software pirate comparison could be made if you are violating licensing terms. But from a legal standpoint I'm not claiming there is anything legally wrong with reselling these games and quite frankly it isn't our job to uphold those licenses even if it was. That's the responsibility of the company who made the product.

What is legally wrong is to cling to the belief that just because you have a disc and own it, that you ALWAYS have the ability to legally resell it. That isn't correct.. at least not in the United States. Publishers will lose out on money if consumers are buying their game second-hand. If they want to prevent this they need to license the product in a way that gives them a legal countermeasure to prevent reselling.
Publishers will lose out on money if consumers are buying their game second-hand. If they want to prevent this they need to license the product in a way that gives them a legal countermeasure to prevent reselling.
If this is true, then going off the current state of affairs we can conclude that publishers don't want to prevent this, as they haven't taken those measures.

[quote name='Michael Tanczos' timestamp='1306033244' post='4814087']I'm surprised this guy is getting slammed. Quite frankly I agree with him in that it does cost developers money. Games should have non-transfer clauses just like other software..
Publishers could add these clauses if they wanted to... but they don't... I'm guessing there's a business decision behind that rather than just incompetence on their parts.

The OP is getting slammed because this debate was a hot topic years ago -- there's a ton of literature on the subject that explains the reality of the situation -- and the OP has not bothered doing his homework and is instead presenting a clearly biased and sensationalist ("stealing", really?) rant to us from behind a facade of professionalism with his fake studio.

Most people would probably agree that it costs developers/publishers money, but none of us can really say how much, and whether that much is actually a big problem or not.
Equating every re-sale as "1 lost sale" is just as fallacious as the RIAA/MPAA's claims that "1 download equals 1 lost sale". Yes that's not a defense for piracy, don't get side-tracked, but it shows the difficulty in accurately measuring the cost of "lost sales". As mentioned earlier, it's complicated further by the fact that these "lost sales" are actually performing marketing for you that will generate some extra sales as well.
Also, in some cases developers might not even get money directly from sales to begin with (depending on the contract with the publisher), so losing sales can't possibly be "theft" from them!
[/quote]

Yeah, to me it's sufficient enough that there are some lost sales. Homing in on some metric on how much a company is losing I'm sure is a pretty voodoo black magic guess.. kind of like the RIAA/MPAA claims. Some people buy games second hand just because they are cheap and worth the gamble.. at full retail buyers have to more carefully consider the utility cost of the game.

In any case, I think the OP presented an argument based on the homework he did do.. and he did present a situation that is more current than 2 years. The 9th U.S. Circuit Court of Appeals ruled last September that PC game makers can use click-through agreements to prohibit the resale of their games.. which goes against the common belief that if it's copyrighted, then it falls under the first-sale doctrine. Also an update to the DVD rental statement, NEBG v Weinstein made it legal to rent out retail DVD purchases so I stand corrected.

I'm surprised this guy is getting slammed. Quite frankly I agree with him in that it does cost developers money. Games should have non-transfer clauses just like other software.. and it's ironic that the same people attacking the OP would jump to the defense of any software company if some dude was trying to lets say.. resell their copy of Photoshop or 3ds Max.

For this practice to be allowed there has to be nothing in the game licensing itself that precludes transfer of that license. Calling it stealing is only true if they are indeed violating a no-transfer agreement.

Absolutely, and I don't know if you intended to include me with your comment about "slamming" the OP, but it certainly wasn't my intention to do so -- to my mind I presented a rational set of arguments detailing my opinion that a) second-hand trade offers some benefit to developers, and b) the approach to solving the "problem" of second-hand sales described in the OP might actually do more harm than good -- you'll note I listed quite a few alternatives. I'd also like to briefly note that the original post has been edited since I responded and was originally more sensational, mentioning amongst other things "sending an f&*% you letter to the owners of GameStop". If I were responding to the current, more reasonable-sounding version of the OP I would probably have chosen less strong wording -- phrases like calling the issue a "non problem" were specifically chosen to match the tone of the post I was responding to, and given a more reasonable post to respond to I might now have acknowledged that there is an issue, but that it may not be as extreme as is being presented.

I don't think anyone has questioned the idea that trade in second-hand titles costs developers money, and it would be pretty hard to dispute that it does. I don't however agree that you can equate what GameStop and similar retailers do to "stealing" though, and I do think it's notable that the second-hand trade does offer some benefit to developers; I wouldn't claim to have any metric as to the value of that benefit or if it outweighs the cost, but as long as the practice of trading second-hand remains legal I consider it somewhat foolish to sling insults at those traders and bemoan the loss of sales.



What is legally wrong is to cling to the belief that just because you have a disc and own it, that you ALWAYS have the ability to legally resell it. That isn't correct.. at least not in the United States. Publishers will lose out on money if consumers are buying their game second-hand. If they want to prevent this they need to license the product in a way that gives them a legal countermeasure to prevent reselling.

Absolutely, and were I offering an informed legal opinion I might have thought to include that as a big "#1" in my list of suggestions to reduce resales.

As things currently stand however, games aren't generally licensed that way, and so once again we're back to the point that calling what second-hand retailers do "stealing" is incorrect. Perhaps games should have that sort of licencing, although I for one sincerely hope that if such an approach is taken they take measures to make it clear on the outside of the packaging that re-selling the product will not be allowed; it might be legal to enforce licencing conditions from a click-through agreement after the disk has been purchased, but in my personal opinion doing so without making it clear before the purchase is pretty dodgy morally.

- Jason Astle-Adams

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