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Why 360 used gamers are generally cheaper comparing to ps3 used games?(Multiplatform)

128 50 February 19, 2010 at 04:16 PM in Question
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Kind of weird huh, maybe they factor the cost of the bluray disc into that? Still doesn't make much sense to me. There are also far more 360 games deals out there comparing to the ps3 deals. One example is Gamefly, which often have 360 sales, but rarely on the ps3.

Another example is Gohastings, which often have game sales. When you look at the same title under the used 360/ps3 section, the 360 titles are vastly cheaper when comparing to the same title under the ps3 section.

Anyone knows why?
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Joined Jun 2008
Consistently Inconsistent
> bubble2 7,660 Posts
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Entropic01
02-23-2010 at 09:48 AM.
02-23-2010 at 09:48 AM.
Quote from Entropic01 :
If stores buy games near $53.99 or so, how in the world does Amazon sell new games for ~$55 with $10 promo credit AND they have to ship the game?
Quote from CALHOUN138 :
Like I said I have no idea what huge companies pay for thier games. I am sure there not paying what I do all i was saying is that the markup is not significant
Quote from wizard7926 :
Remember, he was saying that he runs an independent store and doesn't get the discount that big retailers likely get for massive quantities.
I was just kinda commenting on how amazed I was that the little guy has to pay THAT much more than large retailers. My parents have owned several stores of various types and of course being smaller had to pay more for items but nothing like $30 compared to $54 for a game.
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Joined Nov 2006
L10: Grand Master
> bubble2 8,638 Posts
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thermoelectron
02-23-2010 at 10:02 AM.
02-23-2010 at 10:02 AM.
Quote from Entropic01 :
I was just kinda commenting on how amazed I was that the little guy has to pay THAT much more than large retailers. My parents have owned several stores of various types and of course being smaller had to pay more for items but nothing like $30 compared to $54 for a game.
He's buying <10 copies at a time though. But yeah I'm definitely curious now how much large retailers pay for new games. I could also see larger retailers taking loses by offering discounts via GC to drive purchases with higher profit margins.
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Joined Feb 2009
Jack's Lack of Surprise
> bubble2 10,714 Posts
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SkeezaPleez
02-23-2010 at 10:07 AM.
02-23-2010 at 10:07 AM.
The place that I typically buy my games at sells them at around $54 brand new(+tax and such) so it probably depends on their "distributor" or whatever. You know they still have to be making a profit at the $54 dollar price, otherwise they wouldn't be able to sell them so cheap(brand new) all the time.
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Joined Sep 2009
Gooooo Tigers!
> bubble2 13,969 Posts
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Curtieson
02-23-2010 at 10:52 AM.
02-23-2010 at 10:52 AM.
Guys...Hoot has a point...I will try to explain it better... [EDIT: by this I mean I ONLY agree with his MARKET SCALE comment...that was it...Pirates is not the case]

Market Scale is just that for every 100 Gamers, 100 will buy and play a game. 75 will buy new, 50 of that 75 will return a used 25 of the original 100 will buy a used...lets just use those numbers.

Now, would you say that is different based on Console? Do more PS3 owners buy original games then Xbox360 Owners? No one has stats but WE HAVE TO ASSUME they WOULD BE EQUAL between consoles.

If those are equal...since more people play Xbox then PS3 (lets say 4 times as many) SUPPLY for Xbox is 4 times higher then PS3...since we are saying for every 100 gamers 25 buy used...there will be RATIONALLY EQUAL AMOUNTS of PS3 owners buying when compared to XBOX360.

And we are all intelligent here...Supply vs. Demand drives Cost...so Supply times 4 vs. Demand times 4 drives EQUAL cost across platforms.


Do we all agree? That is very logical thinking...I would say we all agree.



Now, where the argument starts....there is NOT equal supply/demand because we KNOW cost is not the same.

The board is saying SUPPLY IS GREATER of the Xbox, so less cost.
Hoot is saying DEMAND IS LESS of the Xbox BECAUSE OF PIRATES, but he is wrong because Pirates are not in out 100 gamers. They do not buy used, they do not buy new, they do not buy so they do not affect. All a Pirate does is takes our "TIMES 4" number and makes it "TIMES 3". Does that make sense Hoot? Would you agree?

Now, will all the numbers in place, we can get back to the original ASSUMPTION that the MARKET SCALE IS EQUAL. Clearly it is not equal, because our price is not equal. Pirates do not cause this though for reasons above...this is caused by the fact that the XBOX is not the PS3 and we all know that.

Xbox is a more widely versatile crowd...harder to predict and very finicky. This creates a funny equation and harder to predict sales...causing over production (SUPPLY) and thus the sales on NEW games. Because of this finicky crowd that is constantly chasing each other's friends around to find a game they all have...it causing a much greater exchange of Used Games...so again the supply is just much more in flux.

I boil it down to the fact that it is much easier to "pick a number" between 5 and 10 million then it is to pick a number between 10 and 20 million...(by this I mean having a new game that might sell to 50% of 90% of the gaming market...or there about)

That got long...but I think it explained well...others won't I am sure...
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Last edited by Curtieson February 23, 2010 at 12:25 PM.
Joined Feb 2009
Jack's Lack of Surprise
> bubble2 10,714 Posts
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SkeezaPleez
02-23-2010 at 11:02 AM.
02-23-2010 at 11:02 AM.
Quote from Curtieson :
And we are all inteligant here...
Can I just say that is my favorite part of the entire thread? woot


New sig material!!!! laugh out loud
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Joined Sep 2006
L8: Grand Teacher
> bubble2 3,674 Posts
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vettefreak
02-23-2010 at 11:03 AM.
02-23-2010 at 11:03 AM.
Quote from thermoelectron :
He's buying <10 copies at a time though. But yeah I'm definitely curious now how much large retailers pay for new games. I could also see larger retailers taking loses by offering discounts via GC to drive purchases with higher profit margins.


It is possible that retailers occasionally use game deal as a "loss leader" (get you in the store to buy X and hope that you also buy Y & Z) but I think it has more to do w/ volume. Large retailers can afford to have slim margins when they are pushing high volume out the door. Calhoun needs to maximize profit on those 10 new games he sells but Amazon can afford to have a small profit margin on each copy sold because they are selling many thousands of copies.

Quote from Curtieson :
Guys...Hoot has a point...I will try to explain it better...

Market Scale is just that for every 100 Gamers, 100 will buy and play a game. 75 will buy new, 50 of that 75 will return a used 25 of the original 100 will buy a used...lets just use those numbers.

Now, would you say that is different based on Console? Do more PS3 owners buy original games then Xbox360 Owners? No one has stats but WE HAVE TO ASSUME they WOULD BE EQUAL between consoles.

If those are equal...since more people play Xbox then PS3 (lets say 4 times as many) SUPPLY for Xbox is 4 times higher then PS3...since we are saying for every 100 gamers 25 buy used...there will be RATIONALLY EQUAL AMOUNTS of PS3 owners buying when compared to XBOX360.

And we are all inteligant here...Supply vs. Demand drives Cost...so Supply times 4 vs. Demand times 4 drives EQUAL cost across platforms.


Do we all agree? That is very logical thinking...I would say we all agree.



Now, where the arguement starts....there is NOT equal supply/demand because we KNOW cost is not the same.

The board is saying SUPPLY IS GREATER of the Xbox, so less cost.
Hoot is saying DEMAND IS LESS of the Xbox BECAUSE OF PIRATES, but he is wrong because Pirates are not in out 100 gamers. They do not buy used, they do not buy new, they do not buy so they do not affect. All a Pirate does is takes our "TIMES 4" number and makes it "TIMES 3". Does that make sense Hoot? Would you agree?

Now, will all the numbers in place, we can get back to the original ASSUMPTION that the MARKET SCALE IS EQUAL. Clearly it is not equal, because our price is not equal. Pirates do not cause this though for reasons above...this is caused by the fact that the XBOX is not the PS3 and we all know that.

Xbox is a more widely versitle crowd...harder to predict and very finiky. This creates a funny equation and harder to predict sales...causing over production (SUPPLY) and thus the sales on NEW games. Because of this finiky crowd that is constantly chasing eachother's friends around to find a game they all have...it causing a much greater exchange of Used Games...so again the supply is just much more in flux.

I boil it down to the fact that it is much easier to "pick a number" between 5 and 10 million then it is to pick a number between 10 and 20 million...(by this I mean having a new game that might sell to 50% of 90% of the gaming market...or there abouts)

That got long...but I think it explained well...others won't I am sure...

I had no idea Rockdave had moved to Columbus. Welcome back.

Quote from SkeezaPleez :
Can I just say that is my favorite part of the entire thread? woot


New sig material!!!! laugh out loud

LMAO
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Last edited by vettefreak February 23, 2010 at 11:04 AM.
Joined Sep 2009
Gooooo Tigers!
> bubble2 13,969 Posts
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Curtieson
02-23-2010 at 11:06 AM.
02-23-2010 at 11:06 AM.
Quote from SkeezaPleez :
Can I just say that is my favorite part of the entire thread? woot


New sig material!!!! laugh out loud
Shut up, I am numbers not words, haha

Your just jelous...(remember that guy?)
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Joined Jan 2008
the Drunken Snowman
> bubble2 10,780 Posts
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Phrozt
02-23-2010 at 11:10 AM.
02-23-2010 at 11:10 AM.
Quote from Curtieson :
blah blah blah
More people buy 360 games than PS3, so there is less demand for used games, because the supply is greater, which is why the price is lower.

The price is lower for 360 used games because the supply is higher.

Because of a higher supply of used 360 games, their price is lower.

Compared to PS3 used games, the price is lower for 360 games, because there is a higher supply of used 360 games.

Ok... got that? Good.


PIRATES ARE NOT THE REASON THE PRICE IS LOWER FOR 360 USED GAMES.

Even the people stupid enough to try to prove h00t has a point, continue to point out that the reason 360 games are cheaper is because the supply is greater. To make things even more retarded, they go into an explanation showing how pirates actually INCREASE the price of 360 games because they take some of the supply out of the gaming economy.

Please stop trying to prove h00t has a point. He doesn't.. he's wrong.
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Joined Mar 2008
L7: Teacher
> bubble2 2,315 Posts
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brendo927
02-23-2010 at 11:13 AM.
02-23-2010 at 11:13 AM.
I say shenanigans
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Joined Sep 2009
Gooooo Tigers!
> bubble2 13,969 Posts
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Curtieson
02-23-2010 at 11:26 AM.
02-23-2010 at 11:26 AM.
Quote from Phrozt :
...
Well, now I feel bad...I gave you the time of day and read your post and you didn't give me the same favor...

If you had read...

1) you would know that supply being higher is true, but demand is also higher. You are sitting there saying Xbox Supply > PS3 Supply (we all agree) but you back it up with Xbox Demand = PS3 Demand. c'mon...really? You are so stuck on Price and Supply...it is 3 parts...think it through...

2) you would also know I did not agree with the Pirate comments...and I explained how they should be completely removed from the equation...
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Joined Jan 2008
the Drunken Snowman
> bubble2 10,780 Posts
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Phrozt
02-23-2010 at 11:45 AM.
02-23-2010 at 11:45 AM.
Quote from Curtieson :
Well, now I feel bad...I gave you the time of day and read your post and you didn't give me the same favor...

If you had read...

1) you would know that supply being higher is true, but demand is also higher. You are sitting there saying Xbox Supply > PS3 Supply (we all agree) but you back it up with Xbox Demand = PS3 Demand. c'mon...really? You are so stuck on Price and Supply...it is 3 parts...think it through...

2) you would also know I did not agree with the Pirate comments...and I explained how they should be completely removed from the equation...
"We" never all agreed about demand for used games. "We" do know that more new 360 games are sold, because there are numbers to prove it.

H00t's only point is about pirates, so by trying to make ANY sense of what he was saying at all is agreeing w/the pirate comments to some degree... but you're right (and I point that out), that the pirate comments are retarded... you "proved" it in your example.. just like everyone else that tried to make sense of his comments.
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Joined Dec 2009
L100: Broke Dealsman
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smurfsalot
02-23-2010 at 11:54 AM.
02-23-2010 at 11:54 AM.
^^yeah cos pirates are like random variables with eye patches.
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Joined Oct 2007
Foxiest of the Hounds
> bubble2 13,845 Posts
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godfather927
02-23-2010 at 12:11 PM.
02-23-2010 at 12:11 PM.
Quote from Phrozt :
"We" never all agreed about demand for used games. "We" do know that more new 360 games are sold, because there are numbers to prove it.

H00t's only point is about pirates, so by trying to make ANY sense of what he was saying at all is agreeing w/the pirate comments to some degree... but you're right (and I point that out), that the pirate comments are retarded... you "proved" it in your example.. just like everyone else that tried to make sense of his comments.
I think it's fairly safe to say that non-proportional demand for 360 used games is higher than PS3 used games. In other words, if Gamestop has 10 used copies of MW2 for the 360 and 10 equally priced used copies for the PS3. It's a pretty safe bet that the 10 360 copies would sell out first. This is a guess based off install base.

If true, this equates to a higher demand for the 360 games. This higher demand probably exists, but has little concrete data to back it up (unless used game sales numbers are released and tabulated.) But just because it can be difficult to quantify, doesn't mean you can ignore it all together.

Now if your arguement had stated that the demand is less proportional to the console sales because 360 users are more prone to buying newer games and less prone to buy used games due to "some reasoning" involving online play and XBL, or quality of games, etc, then it would hold water.

But with install base and attach rate higher on the 360, there has to be some reasoning for the improportional demand in the used games market.
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Joined Sep 2009
Gooooo Tigers!
> bubble2 13,969 Posts
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Curtieson
02-23-2010 at 12:30 PM.
02-23-2010 at 12:30 PM.
Quote from Phrozt :
H00t's only point is about pirates.
I agreed with his point of Market Scale needing to be looked at...that was the only point I agreed with. Sorry for that, I shouldn't have said "I agree with Hoot" but "I agree with 1% of hoot", haha

Quote from smurfsalot :
^^yeah cos pirates are like random variables with eye patches.
Good point!

Quote from godfather927 :
But with install base and attach rate higher on the 360, there has to be some reasoning for the improportional demand in the used games market.
My post got long so I will try to pinpoint out my thoughts in 1 sentence answers now.

I think it is because people that play Xbox change games MUCH more due to MP matching / getting the same thing as all my friends causing great flux in Demand.

(Also, anyone notice MW2 is $40 for Xbox and $50 for PS3 on Amazon.com for a new copy; I thought that was funny, haha)
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Jack's Lack of Surprise
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SkeezaPleez
02-23-2010 at 12:33 PM.
02-23-2010 at 12:33 PM.
RockDave has indeed made a triumpant return.
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