Are Video Games Collectible?

It is human nature to collect, if something exists, someone WILL want to amass large quantities of it. There are the standard collectibles that have an established community (with websites, price guides, auctions …), like baseball cards, wine, art, and antiques (to name a few) and then there are the not so standard like belly button lint and socks. As video games continue to grow, so does the sub segment of users who both play and collect; I guess this puts them somewhere around stuffed animal heads on the collecting spectrum. The video game industry has even bought into the trend and started releasing “Limited Edition” (LE) versions of some of their premium games; any Halo fan who bought the legendary edition and lives in a small apartment is probably cursing Microsoft as we speak. Does the collectible trend in the industry bode well for publishers and developers or are we heading down a dark path that could set the industry back years (remember the comic book implosion in the early to mid 90’s when the collecting craze took off).

The proliferation limited collector’s edition version of games is a significant trend in the gaming industry, more games are being released with high end versions and the publishers are adding more goodies to the mix. Ten years ago you might have gotten a bonus CD (with music from the game) if you ordered early or maybe even an extra game disc that had a playable version on an older game (i.e. Legend of Zelda: Ocarina of Time shipped with LOZ: Wind Waker), but now you get t-shirts, action figures, posters, and life size replica helmets (thanks Mr. Softy). This is a win-win for everyone: publishers get the added revenue from the collector’s versions (which usually sell for $10-20 more than the standard release) and players get the much valued swag they crave; or is it? Collector’s editions take up a lot of space on retailer’s already crowded shelves, often time 1 LE version of a game might take up as much space a 5-10 normal games (or close to 50 as with Halo 3’s legendary version). Also the added money that the LE costs, comes out of the finite budget most gamers have; if you buy 2 LE games a year (extra $40), that means you can buy 1 less regular game. Ultimately the LE craze squeezes (from a space and $ standpoint) out other less established product; why would a retailer stock Kororinpa: Marble Mania when they can stock the less risky (but infinitely more bulky) Grand Theft Auto IV Special Edition (for both the 360 and PS3 versions).


The other end of the collecting spectrum is propagated with people who crave rare out of print (OOP) games, usually in their pristine factory sealed condition. If you have played video games long enough, you will eventually hear some second hand story of the person who spend $250 on Ebay for a complete copy of Panzer Dragoon Saga (Saturn) or the guy who plunked down $90 for a used copy of Marvel vs. Capcom 2 (PS2) @ Gamestop (disc only!!); although both games are fantastic (I have spent many house with each), paying 2-5 times retail seems ridiculous (even wasteful). The fact that these games command such large sums of money in the secondary markets, suggests that there is plenty of demand to warrant a re-release or even an updated version on a newer system like Valkyrie Profile on the PSP or Final Fantasy IV for the DS; publishers are throwing money away by letting their old code (games) sit on the shelf and gather dust. The video game industry should take a page from their older and larger brother: cinema; Disney is always re-releasing their animated films, pulling them, and then re-releasing an updated version (with more content), or the multitude of versions of Lord of the Rings that New Line Cinema released (I can think of at least 3!).



In the end I do not like the collectible craze and feel it has the potential (if not already) to substantially damage the video game industry. The LE version of games takes up space on crowded retail shelves and takes significant dollars out of player’s strapped budgets (that could be spent on other games). People will collect video games; there is no way to stop it (like I said before, it is human nature), but the industry should not pander to it. The paraphernalia that comes in LE edition version of games should be given away through the mail to loyal customers (similar to what Nintendo does with their new “Club Nintendo”). OOP games should be kept in print through either digital distribution or several older games packaged together on 1 disk/cartridge (i.e. Square’s Final Fantasy I & II or Namco’s various arcade collections). Collecting is not inherently bad, but the video game industry’s reaction to it is.

One Man's Trash, Another Man's Treasure

Are used video games good for the industry? I have had many conversations about this topic, and with the spate of recent poor earnings from video game publishers (and the bankruptcy filing of Midway), the debate seems to be heating up. Video game developers and publishers feel (off the record), that used games are equal to piracy; they argue that used games cannibalize new software sales and reduce their profits. On the other hand, allowing consumers to sell their old games puts more money in their pockets, which often gets funneled back into the video game industry (leading to higher sales).

Before we tackle the issue of how much damage (or lack there of) used game sales cause, there is the question of legality. Some in the industry have proposed that, since they get no revenue from used games (similar to piracy) they should be illegal to sell. The lost revenue is a concern and there is some violation of the developer/publisher’s intellectual property rights (when used games are sold), but they pale in comparison to the basic property rights of the consumer. Violation of consumers’ property rights (through DRM software) is never good and usually leads to lower overall sales (why does Spore score a 2/5 stars on Amazon??). Enforcement of a used sales ban would be difficult at best; what if someone legally bought a game and lent it to a friend (for say 2 weeks) should that be illegal; again, this is technically a violation of the developer’s IP (potential lost sale). One might say that 2 weeks is not OK (too long) but 1 week is fine, or maybe only a day (is acceptable); where do you draw the line (classic slippery slope). Further, opening the door to making used game sales illegal, brings up questions about other media (music CDs, books, movies, comics, …) and how would you handle used sales of those products and why is there so much animosity towards used video games but not so much so for movies or CDs? Do movie studios handle their products differently to negate the effect of used sales (a question for another time perhaps)?

The primary industry argument against used video game sales is that they cannibalize new game sales, which therefore costs developers/publishers money. The cannibalization argument is valid, but the questions remains, to what extent; the publishers would have you believe that it is 1:1 (or 100%), or in other words every used game sold deprives them of a new sale. In reality the cannibalization rate is nowhere near 100% since many people purchase used games due to their lower cost (and would forgo the purchase of a new game if forced to spend the extra $$) and the fact that they are returnable (how often have you purchased a new game only to find you do not like and are now stuck with it); I would put the cannibalization rate closer to 60% (due to these 2 factors). Also, a good portion of used game sales goes back into the industry; often used trade in credit is used for new product, which directly benefits the publishers. If the average gamer could only spend $1000/year on games, they can only buy 20 new games (@ $50/piece); but if they traded each used game in for $18 credit they could buy 27 (and increase of 35%). Combine the lower level of lost sales and the higher level of spending they generate, and used games may actually turn out as a benefit for the video game industry.

The bottom line is that used game sales are legal and to make them otherwise would either be impossible to police or create a consumer backlash that would tend to lower sales (see the DRM argument for the PC version of Spore as an example). In reality used game sales are probably a slight positive to the video game industry, since not all people would necessarily buy the game new and you are increasing the cash gamers have to spend. In the end, used sales are clearly not the threat (can we say scapegoat) that many developers and publishers are making them out to be. Maybe if publishers embraced the idea and tailored their offerings to better suit the market, used products would cease to be an issue; most publishers do a poor job with their IP (both content and old code/games = evergreen), but this is a discussion for another week…

Welcome!

Welcome to our blog! We have created this site as a place for our customers and friends to convene and discuss what we are playing, what we want to play and what is not worth it. If you found us, you probably have purchased a game from us on eBay or Amazon. We thank you for your patronage! We hope this holiday season brought you all the games and/or systems you wanted and if not, be sure to check out our web store on Amazon or our auctions on eBay. Our seller name is jillcccslp. Please feel free to leave your comments and ideas for what you would like to see in discussion.