Is the UK Games Market Saturated?

I came across this article on the BBC website.

What caught my eye in the article was the following quote from Ian Livingstone from Eidos Interactive.

“The problem that publishers have with retail, he said, was due to the growth of the second-hand games market.”

“The pre-owned market is a serious problem, because there is no benefit to developers or publishers,” said Mr Livingstone.

While retailers have to pay a percentage to the publishers for a sale of a new game, there is no such requirement when selling a second hand game, with the shop pocketing all the profit.

Mr Livingstone estimated that the pre-owned market made up more than a quarter of a video-game retailers turnover.

“A shop makes a bigger margin on a pre-owned title, and can sell them six or seven times, so there is no incentive for them to reorder and the content creator gets no slice of the action,”

This is a view, I have encountered several times while researching a piece I am working on for Electro Candy.

All to be revealed this weekend.

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