According to Quantic Dream CEO Guillaume de Fondaumiere, the company saw losses of almost 10 million Euros due to pre-owned gaming.
"We basically sold to date approximately two million units. We know from the Trophy system that probably more than three million people bought this game and played it," said Fondaumiere.
"I would say that the impact that the recession had, that the most important impact especially on AAA games on console, was the rise of second-hand gaming. And I think this is one of the number one problems right now in the industry,” he added.
"On my small level it's a million people playing my game without giving me one cent. And my calculation is, as Quantic Dream, I lost between €5- and €10-million worth of royalties because of second-hand gaming.”
The Quantic Dream boss also took a look at the situation from a pre-owned buyers point of view.
"I know the arguments, you know, without second-hand gaming people will buy probably less games because they buy certain games full price, and then they trade them in etc etc."
"Well I'm not so sure this is the right approach and I think that developers and certainly publishers and distributors should sit together and try to find a way to address this. Because we're basically all shooting ourselves in the foot here."
"Because when developers and publishers alike are going to to see that they can't make a living out of producing games that are sold through retail channels, because of second-hand gaming, they will simply stop making these games. And we'll all, one say to the other, 'simply go online and to direct distribution',” he continued.
"So I don't think that in the long run this is a good thing for retail distribution either."
"Now are games too expensive? I've always said that games are probably too expensive so there's probably a right level here to find, and we need to discuss this altogether and try to find a way to I would say reconcile consumer expectations, retail expectations but also the expectations of the publisher and the developers to make this business a worthwhile business.”
Retailers have of course argued that a healthy pre-owned market is beneficial to the industry. Speaking to MCV, GAME CEO Ian Shepherd said, "I think, through conversations with developers and platform owners, that there is a growing realisation that a healthy pre-owned marketplace is good for the whole industry.”
"It has made the mint marketplace more affordable and has kept people in that marketplace.
"There has been endless debate over pre-owned versus mint, but my view is that a healthy pre-owned and trade-in marketplace - which we are largely the people who are involved in driving - is good for the whole industry.”
So far this hasn't been reflected in the retail market. Just last week, following demand from publishers, two retail stores were reportedly forced to disband an offer to trade in Brink for £35 off a copy of L.A. Noire.
Publishers have been hitting back and making quite an impact, with an increasing amount of online pass systems being introduced to games. EA recently revealed that it has made ten to fifteen million dollars through the online pass service since it was introduced.
Could pre-owned gaming really destroy the industry as we know it? Are you a pre-owned gamer? Let us know in the forum.
