The huge win in digital for them was killing the resell market.
No used games means no competition from previous owners. Prices can stay at $60/70/80 forever without any user market forcing prices down.
Every media vendor wants digital only to cut production costs, but it’s really to own the market. Consoles did exactly that for decades. The shift to subscriptipns for not only online at all but also to “dont own games, just give us a monthly part of your invome forever” was them pushing this advantage to its maximum conclusion.
Only now, with falling sales and falling interest due to “quick media” like tiktok/instagram/etc, is microsoft giving up on its console moat and sharing all games across devices. Only a loss of relevance as an entertainment medium is forcing them to open the market up again.
People vastly overestimate the impact of reselling on games… and that actually includes the platform holders themselves.
20 years ago? Yeah, Blockbuster was a scourge and there were even some magazine articles about noticeable dips in profit when a popular movie came out (because parents would bring kids to the rental store) and so forth. And Gamestop became a big enough player that they allegedly contributed to the death of the PSP Go
These days? Gamestop is all but dead even though most major studio releases still have physical copies. Because the game itself is increasingly a loss leader with the idea being that people will buy DLCs or even sequels. Project 10 Dollars WORKED except now it is Project 30-90 Dollar Season Pass. And… at that point, it makes a lot of sense to just sell the base game for 20 bucks or even give it away “for free” as an IGC.
And a good point of reference is Nintendo. If they were only interested in shelf space they would do what PC games have done for closer to decades than not: just put a piece of paper in a box. Instead, they have the asinine “game card” system which avoids the cost of cartridges while still allowing for resell. And… you can all but guarantee that Nintendo ain’t doing things for the consumer. Hell, back when they were arguably THE leaders in console gaming, Microsoft basically began their death spiral by trying to do largely the same thing for the XBOX One (which also included things like software to support watch parties of shows with friends). If game reselling was such a massive blight on their revenue they would never have tried that.
The huge win in digital for them was killing the resell market.
No used games means no competition from previous owners. Prices can stay at $60/70/80 forever without any user market forcing prices down.
Every media vendor wants digital only to cut production costs, but it’s really to own the market. Consoles did exactly that for decades. The shift to subscriptipns for not only online at all but also to “dont own games, just give us a monthly part of your invome forever” was them pushing this advantage to its maximum conclusion.
Only now, with falling sales and falling interest due to “quick media” like tiktok/instagram/etc, is microsoft giving up on its console moat and sharing all games across devices. Only a loss of relevance as an entertainment medium is forcing them to open the market up again.
People vastly overestimate the impact of reselling on games… and that actually includes the platform holders themselves.
20 years ago? Yeah, Blockbuster was a scourge and there were even some magazine articles about noticeable dips in profit when a popular movie came out (because parents would bring kids to the rental store) and so forth. And Gamestop became a big enough player that they allegedly contributed to the death of the PSP Go
These days? Gamestop is all but dead even though most major studio releases still have physical copies. Because the game itself is increasingly a loss leader with the idea being that people will buy DLCs or even sequels. Project 10 Dollars WORKED except now it is Project 30-90 Dollar Season Pass. And… at that point, it makes a lot of sense to just sell the base game for 20 bucks or even give it away “for free” as an IGC.
And a good point of reference is Nintendo. If they were only interested in shelf space they would do what PC games have done for closer to decades than not: just put a piece of paper in a box. Instead, they have the asinine “game card” system which avoids the cost of cartridges while still allowing for resell. And… you can all but guarantee that Nintendo ain’t doing things for the consumer. Hell, back when they were arguably THE leaders in console gaming, Microsoft basically began their death spiral by trying to do largely the same thing for the XBOX One (which also included things like software to support watch parties of shows with friends). If game reselling was such a massive blight on their revenue they would never have tried that.