this post was submitted on 04 Dec 2023
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I actually hope this ruling gets reversed. This has been a known factor in physical vs. digital games for a long time. With a physical game, the publisher only makes money during the initial sale. If that person decides that they want to sell their game later, the developer doesn't see any of the money from that sale.
I routinely buy games on Steam when they go on sale for 80%+ discounts. Even AAA titles that are less than a year old occasionally see discounts up to 50%. It's rare that we can say the same for physical games. I expect that part of this is that game publishers have factored resales into the value.
A digital copy immediately has a $0 resale value. It has no further value to anybody other than the person who bought it. But a physical copy still retains resale value, as it can be resold multiple times. Aside from a few exceptions, if a developer sells 100 digital copies, around 100 people get to enjoy the game. Versus selling 100 physical copies, which results in significantly more people getting to enjoy it. Also, physical games degrade, but digital games don't. Without any degradation, there's no compelling reason for someone to purchase a used game over a new one.
Overall, this lost revenue will have to come from somewhere. This will almost certainly hurt indie game studios, as well as the digital storefronts themselves. Epic Games is already far from being profitable as is. I can only assume that this will end in higher game prices, less sales, and lower discounts. Other possibilities could be limits on number of downloads, as that extra bandwidth comes at a cost, or subscription fees for storing your digital game library. Of course everybody has their own opinions, but I'd much rather just keep the games I've paid for, and acknowledge that I can't resell them.
You are aware, if that was significantly a problem, a dev can choose to sell a game digitally only. It already exists and some devs already do so.
I fail to see your point? Right now a dev can sell their game as digital-only, forego a bunch of distribution costs and other costs associated with a physical release, and prevent lost game sales from resales. If this was to actually happen, they could no longer prevent those lost sales.
As a gamer, there's no longer any reason to "pay" for games. You can just borrow them. Buy them used, and turn around and sell them when you're done.
Do you think steam and devs are going to allow the transfer of a game on their platform without their cut?
Exactly. When I sell trading cards, Steam takes their cut. I see no reason to expect that Steam and similar platforms couldn't do the same for games, and share the revenue with the publishers.
The way I expect it to work is that you'd sell the game at a fixed price and the resold license would have some limitations (e.g. no trading cards), and the publisher would make almost at much from that sale as a new sale (e.g. maybe Steam takes a smaller cut, and your discount is the difference).
Steam would likely still get paid, but there's no reason they would have to give the publisher anything.
They would if they want to keep the publisher happy. Otherwise the publisher would just see it as losing sales.
because the problem you're brining up is that physical sales is devaluing a devs game because its constantly resold. If that is a significant problem, then get rid of physical sales period, but they still do it which show syou how much devs are willing to support physical sales.
Physical games degrade. They can get filthy or stop working. I'm talking about reselling digital games. If I want to play for example the last of us, I would have zero incentive to buy a new digital copy if I can buy a resold licence from someone who already finished it for a much lower price.
On top of that, digital games also don't have to deal with actually needing to transfer between buyer and seller. You don't need to meet up or send it by mail. It's an instant transaction that has a much larger pool of sellers and customers.
its also a transaction that a native game sellign service can setup to allow for a cut of profit if trade is done on the site, which could give devs a tiny bit more money. if the threat of additional aftermarket sales didnt threat when its physical, then why did devs make physical versions of the game. Theres always some room to debate what ifs, but it doesnt stop the fact that resell of physical did not stop devs from wanting to sell physical, and you can't automatically apply it to digital immediately either.
a e-tailer can choose to create an easy to buy system and then charge some % of the selling fee ala gamestop, and choose to also redistribute some of that fee to the dev if the platform wanted to get on the devs good side after obliging to said law. a lot of things can happen and its not wise to automatically assume the worst outcome.