EA Sports Locks Out Multiplayer Modes On Used Sales
xbox360.ign.com
xbox360.ign.com
(Maybe they should add some biological DRM, too. The game controllers should do a DNA test on your blood, and if it detects your friend playing at your house, it should charge you a $30 "game sharing fee". It's a good idea because before, they got $0 from this. Nobody will be upset at all, just like nobody was upset with Ubisoft's phone-home-for-single-player-game technique.)
It is true, however, that game companies do not directly profit from used game sales.
EA is trying to profit from the money that is not being made, (hopefully) without hurting the customers that buy the game new.
The $10 for the online fee might be saved if you're buying it used, then you pay $10 for the subscription and, used prices low enough, still save money off retail. For example, EA SPORT GAME N is $60 new, online features included. EA SPORT GAME N is $45 used, $10 for online features, total is $55, a net win for the consumer, and EA makes some money back too.
I do think it's a questionable call, but it's an understandable one.
It's the same mentality as the whole pirate discussion. If you are a game publisher, the people who buy the games used are not your customers. They clearly state that they do not wish to buy your product at your price point. Same with pirates, they also clearly state their preferences. Neither group is your customers.
However, people that buy your games new and sell them on are your customers, but with this move, your product becomes less valuable to them ($10 to be exact) and this probably makes a few of them not buy your game in the first place.
What EA dearly wishes to happen though is that Gamestop and similar should soak this cost to keep the used games market running exactly as before. Maybe it will, maybe it won't. At least EA is trying stuff so it will be interesting to see how this plays out.
At used game stores like Gamespot, the difference between new and used is often $5 or less. It also doesn't matter what the retail price point is set at. The used game price point will always be lower. Since new games are currently identical to used game, why not pick up the game for $5 less? This helps Gamespot and hurts EA.
Now, more a burden will placed onto Gamestop. They will have to lower prices on used games to compensate for the new 'taxes'. If anything, this is a win for used game buyers at the expense of Gamestop (an undesirable company from the perspective of EA).
EA is a business and needs to make money in order to sustain making AAA titles. Nowadays, there are hundreds of people working their hearts out to deliver each title. These people would like to get paid. Gamestop does not pay their salaries. EA does. Every time somebody gives $55 to Gamestop instead of $60 to EA, an hour or two of somebody's work is potentially taken at a loss to EA.
Budgets of games are not going to go down. Gamers wouldn't go for the drop in quality. The used market is not going to go away. It's perfectly rational for gamers to try and make a buck. But this puts EA in quite the quandary.
Rewarding gamers for purchasing the game new is rational and fair. Not evil. EA will make money and the gamer will continue to get well made games. Just because a feature or part of the game was once 'free' doesn't justify it always being 'free'. The market is allowed to correct itself.
One person buying the game and playing it for a year: EA revenue: X$ EA cost for development and infrastructure per game: Y$
One person buying the game, playing for half a year, someone else buying it used, playing for half a year: EA revenue: X+10$ EA cost: Y$
If X > Y as we suspect, then this is a naked cash grab. Those tend to be very unpopular. If X < Y, then the move gets more understandable, but they really should think about changing their business model so they can charge for the online experience separately.
Trying to get paid for your product when someone uses it isn't any more of a "cash grab" than any other company selling any other product for money. In other industries when a maker sees no share of the sale of his work, we usually find a way to call what happened to him what it is: theft.
If EULAs were enforced, the situation would be different since the "non transferable license" would maybe kill the commercial used games market.
With this move, they're trying to split it up into two products: The Game, and Online Access, but they don't make the distinction when you buy the game new, only when you buy it used. This borders on violating the first sale doctrine, because the product becomes crippled or partly used-up when you purchase it, for no good reason.
I can understand EA perfectly, they wish very strongly that they were in the business of selling services on a per-month basis, but they are in the commodities business where they sell stuff, and their rights to dictate what can and can't be done with said stuff expires when it's sold.
There are a few companies (Autodesk?) that try to maintain that their commercial software licenses are non-transferable, but they usually get told to stuff it when they try to stop people from buying old licenses. I am slightly worried and curious as to why you seem to think that non-transferable commercial licenses are a good idea?
It's unfortunate the courts have ruled against this when the delivery medium (the disk) is sold on a store shelf. It's like making a movie theater let patrons resell their tickets to be used for a later show.
I expect the eventual result is that everyone will move their content online. See the rise of Steam, XBLA, and soon services like OnLive.
To address your point, they are getting paid when someone buys and uses their product. Currently the $60 price tag includes usage of the game servers for a single person. If that person sells the game why should the new owner have to pay an additional cost? The old user is no longer using the servers and as far as EA is concerned their cost didn't change.
In other industries it's theft? I've never bought a new car so all the used cars I've bought have been theft? What about used cars that still had original warranties intact? Should I be forced to buy a new warranty since I wasn't the original person who purchased it, even though it's tied to the car?
Just because courts have ruled that the ticket coming on a disk means you can resell the disk, doesn't mean EA has no right to find a way to tear the ticket.
I suspect the used car market is also a thorn in the side of auto manufactures. They probably carry higher prices at retail to compensate for the used market as much as possible (assumption). That works for them.
EA could do the same thing and raise the prices of its games to $80-$100. However, they have options. EA would rather shift the cost from 'good' gamers buying new games and go after 'bad' gamers buying from the used market who are only indirectly customers.
Why is this wrong? In the end, somebody has to pay for what EA produces.
What? Absolutely not! EA are free to offer their products at whatever price point they see fit in an attempt to recover their costs for producing their product, as long as they do so within the applicable consumer protection laws. And people are free to accept their offer and purchase their product. Sometimes they succeed. Sometimes they don't.
EA was probably 'comfortable' with the used game market as long as they were rolling in cash because new game sales were profitable enough to compensate for the used game market and piracy.
However, as budgets increase and margins tighten, EA can no longer just look the other way. EA is hurting and many times X works out to be less than Y.
You suggest they change their business model. That's exactly what they have done. Reward gamers for purchasing the game new while not increasing the price of the game at retail while punishing the used game market which does not fiscally support EA.
"creative accounting" as they say.
Companies have a broad ability to cripple their products in pretty much whatever way they see fit. Consumers have a discouragingly persistent willingness to put up with restrictions that are not in their best interest. People will whine about this, but then most of them will go out and buy the games anyway.
What would be a better solution?
It would be different if suddenly two players could play at the same time, but this is like lending a book to a friend... you both can't be reading it at the exact same moment.
Book publishers also generally aren't trying to recoup $50-100,000,000 development budgets.
No it didn't
People don't constantly play games. They play them for awhile after purchase, and then their playtime peters off. If that disc stayed in the hands of the original player, the cost to EA would be near zero for most people, who might bring the game out every couple weeks when friends are over.
While there certainly are original players who keep playing games, they're dwarfed by those who stop playing, or stop playing and sell the game.
If they require a new purchase for multiplayer and online franchises, those features better be damn enticing.
Thankfully with Backbreaker coming out, EA will have some competition in the football market before their NFL lockout is over.
I'm all for innovation and I know they are trying to maximize return, but if the content isn't up to snuff they're playing some tough odds.
Read:
"This is an important inflection point in our business because it allows us to extract more money out of our customers"
They don't make money from used game sales, resale stores like Gamestop do.
While this is a very questionable move from a consumer standpoint, it makes business sense.
MMOs rightfully charge for multiplayer access, however they have servers to maintain and use the resources acquired to improve their game and keep it fresh.
One could argue that if EA wants to make this idea appealing to customers, they should offer new content for free for the paying subscribers of used games, or those who paid for a new game.
Then again, they may just charge us for cheat codes and "VIP" mode like they have in the past. Even if one were to buy the game new.
Even if the cost of hiring individual programmers has remained constant (and I don't have evidence one way or another there - we'd have to consult something like Game Developers' annual salary survey and apply the appropriate adjustments), development teams have definitely grown in size. Bigger teams mean more developers (from all disciplines), including additional management and QA staff.
There are also other cost areas to consider, such as licensing fees and devkit costs, but I'm afraid that I can't share specific numbers there.
No, they're trying to extract money from people who weren't their customers to begin with.
I would guess that a good number of players who sell their old games use the money to buy new games. This move will definitely push the price of EA's used games down, I would guess by close to $10 for games with significant online content. Which means that EA's primary customers (the people buying the new games) now have $10 less to invest in their new game for every old game that they sell. I can't see people increasing their spend on new games to compensate for this, so the net result could be that EA get more money from used sales, which is more or less balanced out by getting less money from new sales.
So you would have no friends, no gamerscore, tens of accounts and paying for gold on them constantly.
No one would do this and that you would even think of it makes me think you've never even used xbox live.
Not going to be a popular move for EA but it's a smart business move.
If I'm misreading your post, I apologize, but how is something that pisses off current and potential customers a 'smart business move'?
GameStop ALONE does $2 BILLION a year in used game sales and EA is a big piece of that.
With everybody from BestBuy to Amazon to Wallmart entering the fray of the secondary-games market I think yah, it's a good business move.