Nintendo's Solution for dealing with the used game market

[redblaze57]

http://www.polygon.com/2013/6/13/4426338/nintendo-if-youre-worried-about-used-game-sales-make-better-games

"We have been very clear, we understand that used games are a way for some consumers to monetize their games," Fils-Aime said. "They will buy a game, play it, bring it back to their retailer to get credit for their next purchase. Certainly, that impacts games that are annualized and candidly also impacts games that are maybe undifferentiated much more than [it] impacts Nintendo content. Why is that? Because the replayability of our content is super strong. The consumer wants to keep playing Mario Kart. The consumer want to keep playing New Super Mario Bros. They want to keep playing Pikmin. So we see that the trade-in frequency on Nintendo content is much less than the industry average – much, much less. So for us, we have been able to step back and say that we are not taking any technological means to impact trade-in and we are confident that if we build great content, then the consumer will not want to trade in our games."

[sin2beta]

Kinda funny because Nintendo sued the rental game market back when it was big. Not quite the same as used games. But I seem to recall they weren't too big on the used market as well. I think it is funny how perceptions change within a company whether or not they are on top or not. The only thing the lawsuit did was stop places like blockbuster from including the instruction manuals with the rentals due to copyright. This started the business of creating one page instructions and gluing them to the rental cases.

ALthough, I honestly do like Nintendo's answer to this question. Don't want games to be traded in? Make good games! Props Nintendo.

[burningdoom]

I'm glad somebody out there still believes that quality is the key to the consumer's wallet.

Except for the N64 generation, I've always been a big Nintendo fan (but have had other systems, too). And they're completely right. I might trade in some third-party titles for my Nintendo systems from time-to-time, but I like NEVER trade away or sell first-party Nintendo titles.

[thomascozine]

Kinda funny because Nintendo sued the rental game market back when it was big. Not quite the same as used games. But I seem to recall they weren't too big on the used market as well. I think it is funny how perceptions change within a company whether or not they are on top or not. The only thing the lawsuit did was stop places like blockbuster from including the instruction manuals with the rentals due to copyright. This started the business of creating one page instructions and gluing them to the rental cases.

ALthough, I honestly do like Nintendo's answer to this question. Don't want games to be traded in? Make good games! Props Nintendo.

I think Nintendo's issue with rentals back in the day was that there isn't enough purchased. Sure, rental companies would buy the games they rented out. But a rental can have a far bigger impact than a used game.

With used games a consumer buys it initially then return it if they are so inclined. The used game may be bought again, though granted that money only goes to the retailer. But it may only change hands two or three times at most before finally having a permanent owner.

With rentals the same game is being played by hundreds and other copies are not being bought because people are renting realize they don't like it and never buy it.

What I mean is that, as Nintendo saw it, more new games are sold under the used market then there was/is with rentals. In short: There is will always be a rental, but used games are dependent upon new games being sold to make them used.

[sin2beta]

Kinda funny because Nintendo sued the rental game market back when it was big. Not quite the same as used games. But I seem to recall they weren't too big on the used market as well. I think it is funny how perceptions change within a company whether or not they are on top or not. The only thing the lawsuit did was stop places like blockbuster from including the instruction manuals with the rentals due to copyright. This started the business of creating one page instructions and gluing them to the rental cases.

ALthough, I honestly do like Nintendo's answer to this question. Don't want games to be traded in? Make good games! Props Nintendo.

I think Nintendo's issue with rentals back in the day was that there isn't enough purchased. Sure, rental companies would buy the games they rented out. But a rental can have a far bigger impact than a used game.

With used games a consumer buys it initially then return it if they are so inclined. The used game may be bought again, though granted that money only goes to the retailer. But it may only change hands two or three times at most before finally having a permanent owner.

With rentals the same game is being played by hundreds and other copies are not being bought because people are renting realize they don't like it and never buy it.

What I mean is that, as Nintendo saw it, more new games are sold under the used market then there was/is with rentals. In short: There is will always be a rental, but used games are dependent upon new games being sold to make them used.

Agreed. And Nintendo is a very different company than they were in the 80s and early 90s. I like this company a lot more. This company might be willing to have Obscene games such as "Night Trap" on their consoles. 

But seriously, I think Nintendo is the last true video game company. I really like them and their approach.

[jobocan]

Yeah, Nintendo was very odd back when they had Yamauchi at the helm. Very draconian and he was probably the type of company president who would have done the stuff Xbox One does if that was an option.

But yes, that's what I keep saying and companies are just not getting it. If you don't make a game worth keeping, most people won't keep it, simple as that. Reggie knows what's up... and looking at an average EBgames/Gamestop used Wii games section, there's barely any Nintendo-published games, because most of them are worth keeping.

[redblaze57]

Yeah, Nintendo was very odd back when they had Yamauchi at the helm. Very draconian and he was probably the type of company president who would have done the stuff Xbox One does if that was an option.

But yes, that's what I keep saying and companies are just not getting it. If you don't make a game worth keeping, most people won't keep it, simple as that. Reggie knows what's up... and looking at an average EBgames/Gamestop used Wii games section, there's barely any Nintendo-published games, because most of them are worth keeping.

 and if you do see them the tend to be between $20-$40 range

[blipcs76]

I think publishers might see the no used game model backfire on them.  Currently, you have a parachute if you buy a new game and don't like it; you can sell it back and recoup most of what you spent on it.  Without that option, gamers will be less likely to take chances on new games and XBone publishers will be forced to homogenize their releases to nothing but uninspired sports, racing and FPS games.

Without the option to sell or trade back a $60 game, most consumers will be far more apprehensive and selective in what they purchase.  Sure Steam and XBLA do well without the option to sell back, but a $5-$10 download is an impulse buy -- $60 isn't.  Small developers without the marketing resources of EA or Activision will probably see sales continue to fall because nobody wants to take a chance on unproven games that haven't had 10 previous games in the franchise.  I expect the XBone to get nothing but COD201x and Madden games since publishers won't be willing to risk a new IP with gamers who can't sell the game back if they don't like it.

[htimreimer]

this has to be the most down to earth conversation about the next box - link
what do guys think of what he said?