“Used Games are Cannibalizing the Gaming Industry” According to Founder of Silicon Knights

Denis Dyack, founder of game developer Silicon Knights, has made statements regarding the future of the games industry in terms of used games sales. According to Mr. Dyack, if the growing trend of used games sales continues then there won’t be a gaming industry in the future.

Mr. Dyack states that “used games actually increase the cost of games”¬†if more consumers end up buying games used. He explains this further by describing what’s called the “revenue tail” that greatly helps with bringing revenue in to the developers after a game has had its opening run.

“There used to be something in games for 20 years called a ‘tail’ where say you have a game called Warcraft that would sell for 10 years. Because there are no used games, you could actually sell a game for a long time and get recurring revenue for quite a while. Recurring revenue is very key.”

“Now there is no tail. Literally, you will get most of your sales within three months of launch which has created this really unhealthy extreme where you have to sell it really fast and then you have to do anything else to get money.”

This last statement is in regards to the expansion of multiplayer and downloadable content (DLC) that has become a common business practice today. To put it simply, games have such a limited life window and these trends are simply to get back that lost money developers don’t see anymore. This could shine some light on past stories regarding recent business practices from BioWare and Capcom.

“I would argue, and I’ve said this before, that used games are cannibalizing the industry. If developers and publishers don’t see revenue from that, it’s not a matter of ‘We’re trying to increase the price of games to consumers and we want more.’ We’re just trying to survive as an industry. If used games continue the way that they are, it’s going to cannibalize. There’s not going to be an industry.”

Now that’s a scary thought. What do you think? Could used games really destroy the gaming industry if these trends continue? Make your voice heard through the poll and comments section below.

6 thoughts on ““Used Games are Cannibalizing the Gaming Industry” According to Founder of Silicon Knights

  1. He holds this view because his company is doing poorly. But the reason Silicon Knights isn’t doing well is because their last two games were awful (Too Human and X-Men Destiny). Quality is destined to make a lot more money than trash.

    Logically, it makes sense that without used games, perhaps game priced can go back to $50 or even $40, and maybe we can start getting free DLC. But frankly, I don’t think I trust any publishers to actually do this. Get rid of used game sales, and I doubt any of the new revenue actually makes its way back to gamers.

  2. Used games certainly serve a purpose and makes games more accessible to those who aren’t as flexible with their wallets as others. I believe you’re right in saying that the source of these statements makes the overall message a little hard to swallow.

  3. Pingback: Electronic Arts planning to go completely digital in the near future « Ultra Mega Death Ray

  4. Pingback: Electronic Arts planning to go completely digital in the near future - logicallydashing: Blog - IGN

  5. Pingback: Sony’s War Against Used Games and Why it’s a Big Mistake | Ultra Mega Death Ray

  6. Pingback: Sony's War Against Used Games and Why it's a Big Mistake - Blog by logicallydashing - IGN

Leave a Reply