EA Execs Also Worried About Second-Hand Sales... But With A Better Approach
Date : 10 Oct 2008 Category : Business
Techdirt
We recently wrote some video game execs complaining about how they should get a cut of any second-hand sales, apparently against the concept of the (well established) first sale doctrine. Reader EJDean alerts us to another article that quotes an exec at EA who also is complaining about second-hand sales, noting that it's a "critical situation." He makes an odd argument that video game companies probably do deserve a cut of the second hand market because digital products don't wear out, like normal second hand goods. Again, he may want to understand the first sale doctrine, as well as basic economics where the availability of a resale market helps increase the value of the initial product.
But, the good news is that while EA would like to get a cut of the secondhand market, it seems to at least realize that seriously pursuing it would be a problem. Instead, the company seems more focused on giving people reasons to pay, such as through additional online services that make it worthwhile for people to pay, rather than freaking out too much about second hand sales. This is the right approach. Rather than worrying about second-hand sales, find a business model where that's not even an issue.
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But, the good news is that while EA would like to get a cut of the secondhand market, it seems to at least realize that seriously pursuing it would be a problem. Instead, the company seems more focused on giving people reasons to pay, such as through additional online services that make it worthwhile for people to pay, rather than freaking out too much about second hand sales. This is the right approach. Rather than worrying about second-hand sales, find a business model where that's not even an issue.
Permalink | Comments | Email This Story