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Xbox One - General Discussion (NO DISCUSSION REGARDING PS4 - MOD WARNING Post 6903)
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I certainly agree some form of compromise was needed. The current system, as engineered by the larger retailers, was simply untenable going forward, however, I find MS' solution equally objectionable. As for the platform holder getting a cut of that second hand sale, I'd be in vehement opposition to that, they get more than enough in the first place.Underpaid Mike wrote: »A thought is to take 10% or 20% on the transaction of selling a game on the new xbox marketplace. That way both microsoft and the publisher will make money from second hand games. This seems the most obvious way to get a cut of the action, im sure gamestops margins are >40% on their second hand game sales at times so you can see why publishers want a cut of the action
They don't though, as of their 2011 financials, the profit margin on second hand sales was 46.6% for second hand games yet 20.7% on new sales.Pageant Messiah wrote: »Overall revenue should not be confused with volume of sales. Furthermore if a retailer makes the same or more profit on a €10 pre owned game sale versus a €50 - € 60 new game the percentage of revenue / profit derived is very much skewed.
Second hand game sales at the €10 price point aren't the problem though, it's the ones at the higher price points that would most likely affect new sales. From the retailers perspective, once they hit that price they've either been purchased for pennies or been through the second retail cycle several times assuming they haven't been sitting on the shelves for a long time of course.
While that may have been the case previously, that loophole was closed awhile back. Even before then there had been a rise in the popularity of stores outside of these areas, in the UK at least. Then there's Amazon who were cheaper for a different reason of course.Pageant Messiah wrote: »1) Most big discount online retailers are operating from the channel islands and therefore outside of the EU. Most of the discount there is actually because there is no 23% VAT in the equation.
Absolutely correct. I guess it just comes down to which company you'd prefer to see getting the profits, the retailers or the content creators.Pageant Messiah wrote: »2) Cost of running a bricks and mortar store is a lot higher than an internet site. For bricks and mortar stores to be discounting as much as they have been here in Ireland has only been made possible by the pre owned market here.0 -
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But what will it define as normal, I know for a fact when I'm in shape for kickboxing my heart rate is 52bpm but when out of shape it's 80.
Ever see persons of interest on tv.....think of all those wirelessly accessible cameras!
I really have no interest in xbox one tbh. I think im finally going to joing the gaming master race
Mine is about 58 but if the system recognises that as a baseline when sitting on my arse, then it can detect if I decide to just pack it all up and get lazy 0 -
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They don't though, as of their 2011 financials, the profit margin on second hand sales was 46.6% for second hand games yet 20.7% on new sales.
That is across their entire portfolio. In Ireland new games are being discounted more than other territories. Have a look at the european Gamestop websites where pre owned isn't as strong and you will see what I mean. The impact on the Irish market in particular will be a lot higher.
Second hand game sales at the €10 price point aren't the problem though, it's the ones at the higher price points that would most likely affect new sales. From the retailers perspective, once they hit that price they've either been purchased for pennies or been through the second retail cycle several times assuming they haven't been sitting on the shelves for a long time of course.
But those €10 - €18 in particular sales make up a huge chunk of that pre owned market and revenue.
While that may have been the case previously, that loophole was closed awhile back. Even before then there had been a rise in the popularity of stores outside of these areas, in the UK at least. Then there's Amazon who were cheaper for a different reason of course.
I believe that the loophole you mention being closed was a loophole closed by the UK government for sales into the UK from the channel Islands. The channel islands are outside of the EU for tax purposes so any items sold from and shipped from there to states other than the UK (and since we're talking about Ireland) are shipping without VAT. That's why you still occasionally get posts here about people being stun for customs after ordering from some of these sites. Amazon do include Irish VAT though.0 -
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