A new study by analyst group Cowen and Company suggests that used game sales accounted for a 20% drop in Xbox 360 and Playstation 3 sales in 2009, compared to equivalent sales in 2003.
While that is quite a gap in the timeline, consider this: According to NPD, the combined PS2 and Xbox installed base (consoles in homes) was roughly 30 million in 2003, with 106.9 million pieces of software sold. In 2009, the PS3/360 audience is nearly identical but has a software sell-through rate of only 85.5 million.
Not surprisingly, the report also points a finger at Gamestop, who raked in a staggering $2.39 billion in used game sales in 2009, compared to $403 million in 2003.
The report was created in response to EA's introduction of their "online pass," an incentive which allows gamers who purchase new EA titles to play online for free, while charging recipients of used copies $10 for the same privilege. Cowen and Company believe the Online Pass and similar initiatives will be accepted over time - albeit grudgingly - by both Gamestop and consumers.
You may be wondering if the increase in casual gamers via the Wii market impact this study, but the study suggests that demand for core games has risen substantially over the past decade, while used games sales have grown at a much faster, disproportionate rate.
The report also blames "stubbornly high price points" such as the introductory PS3 hardware as one reason for the drop. Of course, cynics in the audience could simply point to the struggling economy in 2008 and 2009.
Clearly the battle between publishers and the used game industry wages on...
[Source]
Comments
Is it really surprising to those conducting the report that the findings turned out this way? I don't think we even really needed a report to know that used games sales outrank core sales. If a consumer can get a game or peripheral for cheaper - even $1 cheaper - he most likely purchase that product for the lower price.
Good reporting - definitely an interesting topic and conversation point.
Jonathan Moore
Savannah Area PS3 Examiner
Are you serious?! The wii and DS are selling more software and hardware at a rate more than the PS2 ever did!!!!!! But this study fails to mention that!!!!
Maybe the PS3 and 360 are just not that as good as the PS2, Wii and DS cause their sales rock!!!!
Maybe the next time a study is done they should factor in the true game masters! Nintendo!!!!
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