The eradication of the pre-owned games market would bring about grave consequences for the sector, one analyst has warned.
MCV reported yesterday that a legal ruling in the US in could jeopardise the future of video game trade-ins, completely destroying the business models of many of the world’s key games retailers in the process.
“While publishers have traditionally frowned on used game sales, the thoughtless eradication of the used game market could have severe and unexpected consequences for the industry,” Janco Partners analyst Mike Hickey told MCV.
“We strongly believe used game sales drive new product sales and dampen piracy incentives.”
However, Hickey also thinks it’s unlikely that yesterday’s ruling will be upheld, let alone carried over into other industries.
“We believe that the first sale doctrine currently protects used game retailers’ customers rights to sell legally purchased software,” he added. “We expect the decision will likely be appealed again, as the verdict has implications beyond gaming; movies, books, etc.”