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New online retailer to return percentage of used game sales to publishers

Wednesday, 25th April 2012 08:08 GMT By Matt Williams

Defying industry trends, a new online retailer is planning to return ten percent of all used game sales to publishers.

The US-based retailer EKGaming explained that the decision was made to combat the growing trend of online passes, and single-use DLC content, included by publishers to diminish used game sales. By returning a share of the profits, the retailer hopes to create a healthy “circle of life” between publishers and retailers.

According to CEO Mike Kennedy, the idea is intended to promote the financial viability of innovative titles in an industry faced with rising development costs.

“This increase in dev costs is steering them in directions that don’t necessarily jive with gamers, causing them to take less risks on new and potentially exciting IP’s or game mechanics and sticking with tried and true properties that are more of a guarantee,” Kennedy explained. “We want to share our used game revenue with them so they can continue investing in new gaming experiences without worrying about the negative effects used games could be having on their operation(s).”

EKGaming promises its used prices will be 20 to 30 percent less than its competitors.

Thanks, Eurogamer.

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15 Comments

  1. yoggesothothe

    Utterly brilliant, though perhaps too little too late. Hope this starts a trend.

    #1 3 years ago
  2. Telepathic.Geometry

    If this is on the level I think it’s a great and maybe even slightly altruistic business idea. I’d love it if this shit actually took off.

    #2 3 years ago
  3. silkvg247

    Surely it should go to the developers/designers/artists etc.. you know.. the people who actually made the game.

    #3 3 years ago
  4. Gekidami

    ^ …When you buy a game new, where do you think the money goes?; It goes to the publisher who then pays the developer.

    #4 3 years ago
  5. OlderGamer

    I think this is a good 5 years too late. Plus its the wrong retailer. An upstart isn’t going to have the same impact as Gamestop.

    That being said, it is a classy move.

    I have long thought that this was the solution.

    I hope they and their idea take off.

    #5 3 years ago
  6. DSB

    They’re going the wrong way.

    They should be returning 10% to the customers, so they can pay for the idiotic charges that publishers put on ‘em.

    #6 3 years ago
  7. ManuOtaku

    I really dont think this is a solution, although i grant this is a good move on their part, but i think the publishers will not care, at least the bigger ones, they are quite happy with DLC and the other mechanics they had implemented over the past few years, even more if the rumors turn out to be truth, i mean that the new consoles will have an strong focus on fighting this, the publisher wont care, even if they return them 50%, the have found the golden gooses right now, looking at you street fighter x tekken (capcom).

    #7 3 years ago
  8. manamana

    @6 They are the good ones. The others are the bad ones, remember that.

    #8 3 years ago
  9. ManuOtaku

    #8 if i may correct your statement, scratch bad ones, instead put EVIL ones.

    #9 3 years ago
  10. OlderGamer

    If their prices are 20%-30% lower then gamestops, they kind of are returning a % back to the gamer.

    #10 3 years ago
  11. manamana

    Evil and I also add greedy.

    #11 3 years ago
  12. DSB

    @8 Either way. Customers trying to appease an industry leaves a bitter taste in my mouth. Who’s serving who, here?

    If you allow an industry to set its own terms instead of actually listening to the market, something is very wrong.

    I reckon gamers need to grow a pair.

    #12 3 years ago
  13. manamana

    Shure and I get your point. But the industry is already there, so what are we as gamers supposed to do? We already buy new games, that cost a lot of money. To sell or trade them are, from how I see things, our absolute right. Like with every other good I want to buy or sell it as a used item. But what is with the digital downloads nowadays. They are somehow virtual, eg, binded to my account, so that its impossible to sell them.

    I wish I had a good idea how to change things but I guess: it is what it is ….

    #13 3 years ago
  14. Christopher Jack

    This is one idea, pay royalties back to the makers, the other is to go the PC route where you essentially lock the game to the computer & therefore can not be sold again unless you transfer the account or what ever it may be locked to along with it. I don’t know about overseas, but game retailers here refuse to take in PC games even if the game does allow for multiple installs on different computers(which is becoming more & more rare these days). The one & only exception (other than online stores like eBay) are pawnbrokers like Cash Converters.

    #14 3 years ago
  15. DSB

    @13 Well there’s no easy solution.

    Quite simply, people who buy videogames should roar. If they put as much interest into the corrupt and broken business practices of the industry, as they did in whether Sheperd lived happily ever after or not, things would arguably change.

    I’d compare it to what happened with the banks. First they ruin the market, then they start charging people for services that actually help them bring down their own overhead, like online banking.

    The result was an extremely heated reaction that saw millions of customers move their accounts from banks to credit unions, because credit unions were actually engaged in sound business, offering services at a value that made sense.

    I think it is because gaming is stuck in a narrower culture where people view things differently than Joe Public. It’s like gamers have their own world with its own logic. It’s perfectly normal to pledge allegiance to a console manufacturer or hardware platform. They fail to see that there’s also an industry out there, which is intent on exploiting them as hard and as far as it will be allowed to go.

    I’m sure it’ll change once the whole scene opens up and becomes truly mainstream, but it’s not outrageous to suggest that the market dictates demand, and the industry dictates supply. That’s the basis of any healthy economy.

    #15 3 years ago

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