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EKGaming To Give Publishers 10 Per Cent Of Used Game Revenue

Business & GovernmentNews
by Jon Martindale, 24 Apr 2012News

New US game retailer, EK Gaming, has announced an innovative scheme that could see the used game market survive, despite the onslaught by online pass DRM and the news that next-gen consoles may not support pre-owned titles.

Looking to extend an olive branch somewhat, EK has pledged to give 10 per cent of all used game sales revenue to the original publishers, allowing them to earn from their titles long after the games have been released. Considering many pre-owned games are traded in and resold several times, this could potentially become a big revenue stream for publishers.

"Publishers are spending record amounts of cash on new game development. This increase in dev costs is steering them in directions that don't necessarily jive with gamers, causing them to take less risks on new and potentially exciting IP's or game mechanics and sticking with tried and true properties that are more of a guarantee," said CEO of EK Gaming Mike Kennedy.

"We want to share our used game revenue with them so they can continue investing in new gaming experiences without worrying about the negative effects used games could be having on their operations."

In what has become a bit of a chicken and egg scenario, gamers claim that they buy used games because the standard retail prices are too high. Publishers on the other hand say that the prices are so high, because used games are causing them to not sell as many new titles.

While this argument is likely to never be resolved, EK Gaming has a good solution that hopefully other retailers will implement.

Source: Games Industry

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