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Sony May Try To Stop PS3 Game Resales 423

Next Generation reports on Sony's hopes that it will be able to prevent the resale of PS3 games. The article argues that it is unlikely they'll succeed in this goal. From the article: "One expert in retail law told Next-Gen.Biz, 'Sony can theoretically sell a license to play the game, but the user would have to acknowledge acceptance of the license. You've seen this when you install software on a PC. I'm not sure that the license agreement is enforceable if the licensee doesn't agree to it. Also, even if the agreement is enforceable, it's hard to preclude subsequent sale of the disc. The consumer could theoretically agree that he doesn't own the right to transfer his license, but why couldn't he sell the medium that held the license (the disc)? Sony can't enforce the agreement against a third party, as it lacks privity with the third party.'"
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Sony May Try To Stop PS3 Game Resales

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  • I lost count (Score:5, Insightful)

    by Roody Blashes ( 975889 ) on Wednesday May 24, 2006 @03:11PM (#15396472) Homepage Journal
    How many reasons do I now have to not buy a PS3?
  • How to fail (Score:4, Insightful)

    by jonnythan ( 79727 ) on Wednesday May 24, 2006 @03:13PM (#15396484)
    I'm seeing a future, a few years from now, where columnists looks back at what Sony did in 2006 and create laundry lists of "how to implement the largest-scale failure in the history of video games."
  • by blanktek ( 177640 ) on Wednesday May 24, 2006 @03:17PM (#15396538)
    "According to a UK news source" the article claims. This is fit for the tabloids. I guess thats why its posted by Zonk.
  • by creepynut ( 933825 ) * <teddy(slashdot) AT teddybrown DOT ca> on Wednesday May 24, 2006 @03:20PM (#15396570) Homepage

    Ka-BLAM. - The sound of Sony falling to dust.

    Really, truly, why would Sony do this?

    I mean, I heard rumours of something similar a while back. They were going to try and make a disc you buy to only be able to play on a single system. No more copying, no more renting, no more lending.

    Hell, what happens to me when my PS3 goes the same way as my PS2 and I need to get a new one? Better yet, what happens when they release a new slimmer version and suddenly I'm not able to play anymore?

    Mind you, this may not be the case with this new system of theirs, but why kill the second hand market like this? I can't remember the last time I bought a game brand new. Game Boy Advance and Game Cube both, nearly all my games are second hand copies. Why? Because not only are they cheaper, but because it's sometimes harder to find games new after they're released. Especially the rare gems.

    On top of the fact that used games would be near impossible, what will they do for rentals? I'm certainly not going to go fork out $80 (CDN) for a new game that I've never tried. I want to go out and rent it, and if it is worth it, sure I'll pick up copy. "Greatest Hits" games hardly count, because they are simply cheaper because they've been out longer, and a few people liked them.

    If they do this, they'll be shooting themselves in the foot. There won't be a PS3 in my place (mind you, the PS2 belongs to the finacee), and I guarantee there won't be one in many of the living rooms I know of.

  • Unlikely? (Score:2, Insightful)

    by Goostoff ( 930045 ) on Wednesday May 24, 2006 @03:20PM (#15396573)
    I doubt this is likely and is just old news resurfacing. Not only if Sony implemented this strategy would resale businesses have problems, but renting games would cease to exist (for the PS3, at least). This would definately cause troubles for Sony as customers could not try before they buy or even enjoy a weekend of a party game. Blockbuster, Gamestop, et all, would pull out all stakes to prevent this if this were real.

    http://www.joystiq.com/2005/11/08/playstation-3-wo nt-play-used-games/ [joystiq.com]
  • could it be true? (Score:5, Insightful)

    by L-Train8 ( 70991 ) <Matthew_Hawk.hotmail@com> on Wednesday May 24, 2006 @03:20PM (#15396576) Homepage Journal
    The evidence for this is an unamed "UK news source, citing retail contacts." And a Sony patent on "technology which would tie a piece of software to an individual piece of hardware." Also, Sony isn't commenting on this story.

    But the article also points out how technological enforcement would be difficult, and how such a move would completely piss off both retailers and consumers.

    I can't see Sony actually doing this, I really don't think it makes a lot of business sense. But then, I never thought they would charge $600 for a PS3.

  • by WuphonsReach ( 684551 ) on Wednesday May 24, 2006 @03:21PM (#15396582)
    What will this do to the game rental market? (Does Blockbuster still rent games?)
  • EULA (Score:2, Insightful)

    by the_Bionic_lemming ( 446569 ) on Wednesday May 24, 2006 @03:21PM (#15396585)
    How will they enforce a contract with a nine year old?
  • by Anonymous Coward on Wednesday May 24, 2006 @03:24PM (#15396614)
    This is just another stupid baseless rumor. The story is printed with no source and no evidence. The story is just another variation on a year-old rumor that Sony has already directly denied. [ps3focus.com] The "Sony has a patent on such a technology" in the story fails to mention the patent in question was originally filed in the Playstation 1 era. Go and look up the original patent-- it talks about CD-ROMs.

    But, hey, the new rules of gaming media are
    1. Is it about Sony?
    2. Does it make Sony look bad?
    If so, then there is no step 3. The rumor must be right, and it's getting printed on Slashdot.
  • Re:Wow, just wow. (Score:3, Insightful)

    by NewWorldDan ( 899800 ) <dan@gen-tracker.com> on Wednesday May 24, 2006 @03:24PM (#15396618) Homepage Journal
    And do the people who write these articles (citing unnamed sources) ever study economics?

    If true, such a move would be a massive boost for publishers and developers which do not profit from the lucrative and damaging retail trade in used games. In fact, many publishers are furious that they have to spend support money on consumers who have not actually contributed a dime to the company's coffers.

    The secondary market adds value for the consumer. The average consumer will be more likely to buy a new release for $60 if they think they'll be able to resell it for $35 when they're done with it. Furthermore, publishers wouldn't be spending support money if they didn't release buggy products to begin with. All in all, the secondary market probably has a very small effect on how much publishers actually pocket.
  • Easy workaround? (Score:5, Insightful)

    by Bastian ( 66383 ) on Wednesday May 24, 2006 @03:25PM (#15396626)
    So all I have to do to get around this is let the neighbor kid (who is too young to enter into any sort of legally binding contract) play all of my games first, right?
  • Re:Wow, just wow. (Score:1, Insightful)

    by Anonymous Coward on Wednesday May 24, 2006 @03:27PM (#15396645)
    It isn't that Sony hates their customers that much and more that PS3 games really cost that much to produce. Sony needs to ensure that everyone who is willing to buy a game buys a new copy of that game.

    What it boils down to is this: there has been a standard (exponential) rate of growth in the cost to produce a game per generation.

    Aproximate Average Game Development Cost
    NES: $25,000 - $50,000
    SNES: $100,000 - $200,000
    N64/Playstation: $500,000-$1,000,000
    PS2/Gamecube/XBox: $2,000,000-4,000,000

    Estimate PS3/XBox 360: $5,000,000-$20,000,000

    If you're spending in the $20,000,000 you need to sell 2 Million copies before you break even; this would put you in the league of Super Mario Sunshine or The Legend of Zelda: Wind Waker in sales before you break even. Sony can't afford to have you to save a couple of dollars by buying a used game.

    I'm not defending Sony, just trying to explain what they are doing.
  • by Robotech_Master ( 14247 ) on Wednesday May 24, 2006 @03:32PM (#15396689) Homepage Journal
    A hardware-software locking scheme would also stop the big movie/game rental chains (such as Blockbuster, Hastings, etc.) from renting PS3 games. This could be a big blow to the industry, I think, given how many copies of the games the rental chains end up buying, and also that a lot of people will try renting a game for the short run before they decide to shell out the dough to buy it.

    Ah, just how stupid can Sony be? I'm reminded of that old Einstein quote about how only two things were infinite--the universe, and human stupidity--and he wasn't sure about the first one of those.
  • by SuperKendall ( 25149 ) on Wednesday May 24, 2006 @03:33PM (#15396701)
    Very clever hiding the truth behind two layers of news stories - the original story is about how industry experts doubt this claim (which comes from an unnamed UK source) is true! So why the anti-Sony spin when the original story is about how people think there's no way Sony would do this and they've not even said they would?

  • Re:I lost count (Score:5, Insightful)

    by narrowhouse ( 1949 ) on Wednesday May 24, 2006 @03:34PM (#15396709) Homepage
    I am not even a big gamer, but back when it looked like Sony planned on shipping the PS3 with Linux installed, at $399 a pop, I thought I might get one just to have a blu-ray player and a linux machine running on a cell processor. Since then Sony:

    1- installed a root kit on my In-laws machine through a Neil Diamond CD
    2- increased the price dramatically
    3- announced that they would like to uni-laterally revoke my right to resell items I purchase.
    4- generally bone headed their way through every press conference they have had without apologizing directly for any of their bad behavior.

    so I don't have an exact count of reasons, but I know the sum == enough.
  • by WhiteWolf666 ( 145211 ) <sherwinNO@SPAMamiran.us> on Wednesday May 24, 2006 @03:47PM (#15396841) Homepage Journal
    . . . to my DRM locked down, $800.00, unable to resell games, every-title-is-a-remake, HDMI-required for HD playback console.

    With all the bloody restrictions they should be paying me to take the damn thing.

    Seriously; wasn't that the "promise" of all these locked down DRM systems? Hardware free, software as a service, copy protection means that companies can easily recoup their investment.

    I couldn't imagine _ever_ buying one of these. It would _really_ have to blow me away.
  • Online games... (Score:5, Insightful)

    by OneFix at Work ( 684397 ) on Wednesday May 24, 2006 @03:57PM (#15396930)
    That's why companies like the idea of online games. You are pretty much stuck with the game, since they generally aren't easily transferable...not only that, but quite a few games come with free play time (3 months free, etc)...this makes resale of these games less profitable...
  • by Metroid72 ( 654017 ) on Wednesday May 24, 2006 @03:58PM (#15396940)
    That only the people who follow the industry (hardcore gamers or not) are the only people aware of all the reasons not to buy the PS3. However, Sony will still these overpriced piece of hardware like hotcakes. Having a PS3 will be more like a status symbol, and we're in a society where "keeping up with the Jones" is a major driver.

    Long live great games (regardless of the console) and competition (because it benefits us).
  • Re:Wow, just wow. (Score:2, Insightful)

    by falcon8080 ( 975701 ) on Wednesday May 24, 2006 @04:27PM (#15397144) Homepage
    What consumer backlash? - People dont care, even with the rootkit stuff people still went out and brought the CD's, if anything it put the name 'SONY' out in the publics mind more than a regular marketing campaign.

    People are lazy and really could careless, right up until the point it really does affect them, but then its too late...
  • by exp(pi*sqrt(163)) ( 613870 ) on Wednesday May 24, 2006 @04:29PM (#15397157) Journal
    Sony are acting like a company that own the market and can dictate whatever terms they want. Remind me, which Sony products are so awesome that I have to buy them and submit to these terms? It's not the their games consoles (portable or not I prefer Nintendo), or their TVs (Samsung make better) or their stereos (who'd buy a Sony?), or their portable audio players (I love my iPod), or their cameras (Canon for me), or their laptops (Apple again), or their memory sticks (I tend to use SD cards), or their crippl(ed|ing) audio CDs (somehow they don't seem to publish music I like), or even their headphones (I'm happy with my Sennheisers).
  • Re:Irrelevant (Score:3, Insightful)

    by DragonWriter ( 970822 ) on Wednesday May 24, 2006 @04:41PM (#15397254)
    Little Timmy drops the disk in. "You must agree to play the game." Timmy agrees. Timmy is 8. He can't sign a (legally binding) contract. His parents didn't sign the contract. The game lets him play anyhow -- he said yes. Timmy grows up and does not like Pokemon anymore and sells the disk at his family's garage sale.

    Sue a kid over a non-enforcable contract?


    The story is about technological tieing of the software to the hardware. So, if this was true at all, the person likely to sue would be the person to whom grown-up-Timmy sold the software, having claimed it was a playable game when, in fact, it was inert except on the console for which it was licensed, which Timmy, presumably, did not sell with the game.

    Of course, it seems unlikely that this is practical with a game disk, unless it has a phone-home activation which then gets a key which is stored on writable media (memory card, hard disk), that depends on a second key which is unique to the hardware.
  • by faust2097 ( 137829 ) on Wednesday May 24, 2006 @04:46PM (#15397290)
    This is the same site that falsely announced that the base-model PSP woul have wired controllers and a non-upgradable hard drive:
    http://www.gamesradar.com/gb/ps3/game/news/article .jsp?articleId=20060513133719562032&sectionId=1006 [gamesradar.com]

    I know it's probably totally unreasonable to ask Slashdot to "consider the source" but GamesRadar has a reputation of inaccuray and sensationalism.

    Game specialty stores still account for over 25% of US sales of video games, systems and accessories. They are also successful in large part because of used games. This move would essentially hamstring them and either lead to them dropping Sony product from their stores or just going out of business.
  • Re:I lost count (Score:5, Insightful)

    by mrscorpio ( 265337 ) <twoheadedboy.stonepool@com> on Wednesday May 24, 2006 @05:04PM (#15397401)
    You mean like the precidents allowing people to make copies of stuff they legally own (e.g. DVD to VHS)?
  • Re:Wow, just wow. (Score:2, Insightful)

    by joshsisk ( 161347 ) on Wednesday May 24, 2006 @05:09PM (#15397432)
    While your second point is very true, the reason DVDs can cost less is that there are more avenues for the studios to make money from a movie than the DVD - theatrical release,foreign distribution rights, pay-per-view, HBO, cable, network TV, airlines, hotels, licensing, product placement, etc... (That and the fact that a movie will give you only 2 hours of entertainment, so the consumers aren't willing to pay more.)

    DVDs are highly profitable for the studios because the movie has possibly/probably/hopefully already broke even before the DVD comes out, thus the DVD is a very profitable venture.
  • by justin12345 ( 846440 ) on Wednesday May 24, 2006 @05:21PM (#15397503)
    I'm not too sure that "keeping up with the Jones" applies in this case:

    Even if the PS3 turns out to greatly overpower the XBox 360 (which I doubt), the graphics of either system are limited by the time and artistic resources of the companies that develop the games. Most developers are going to make the most money be releasing a game on both systems. Given the already massive cost of developing 3D artwork, they will most likely design the game for the weaker one, and just up the poly and particle count on the stronger. I doubt either system will really outshine the other.

    Speaking of competition: Am I the only one that thinks both Sony and MS are going to lose big on this next round of counsels no matter what they do? In the past, many people bought both a PS2 and an XBox. Because of the high price of both systems, consumers are being forced to choose between the two, which means the market will be halved for either company. I predict the only company that is really going to make out is IBM --as they are making the chips for both.
  • Re:I lost count (Score:2, Insightful)

    by Chosen Reject ( 842143 ) on Wednesday May 24, 2006 @05:34PM (#15397553)
    Wow, S&M. They really are after the hardcore.
  • Re:I lost count (Score:5, Insightful)

    by Fulcrum of Evil ( 560260 ) on Wednesday May 24, 2006 @05:37PM (#15397583)

    Do not purchase second hand products (I prefer the artist, producers and manufacturers to be paid for my purchases)

    Um, why? It isn't like secondhand goods are black market - Sony already got paid the first time, and trading used goods is a good way to save money. Why are you so intent in giving Sony your money?

  • Re:I lost count (Score:2, Insightful)

    by Suzumushi ( 907838 ) on Wednesday May 24, 2006 @06:02PM (#15397740)
    The world needs people like you, who pay full price for burgeoning technology, so that the rest of us can enjoy it at reasonable prices once it has been fully adopted. I for one applaud you and will enjoy the benefits your dollars reep for me.
  • Re:I lost count (Score:5, Insightful)

    by senatorpjt ( 709879 ) on Wednesday May 24, 2006 @06:50PM (#15397982)
    Sony, you're thinking of Sony-BMG

    Isn't that kind of like saying "I didn't kill the guy. It was the bullet's fault."

  • This is a lie (Score:4, Insightful)

    by kaffiene ( 38781 ) on Wednesday May 24, 2006 @08:50PM (#15398499)
    SCEE PR manger Jennie Kong blasted the rumor as " false speculation." "PlayStation 3 software will not be copy protected to a single machine but will be playable on any PlayStation 3 console,"

    The story is a lie. Clearly Slashdot editors hate Sony enough that any slander they come across is promoted immediately to a top level article.

  • by bussdriver ( 620565 ) on Wednesday May 24, 2006 @11:08PM (#15398980)
    I bet a lot of upset people now will be impressed with something on the PS3 and buy one despite all this. They will not lose many customers over this stuff:

    1) Most people don't know
    2) Many who know will forget in less than a year
    3) Some /. people will forgive them when Sony gets some nice bait on their expensive hook.
  • Re:I lost count (Score:3, Insightful)

    by Fulcrum of Evil ( 560260 ) on Thursday May 25, 2006 @01:22AM (#15399438)

    Most people do not consider reselling a used DVD as immoral.

    DVDs are a product.

    But on the other hand most people would consider reusing (with or without reselling) a movie theater ticket to get into a movie twice would be immoral.

    Movie theatres are a service.

    When purchasing a used product, you are, in most cases, receiving the benifit of the product without any compensation given to the people who worked hard to produce the product.

    Why is that? They don't work any harder, and they don't actually have a right to be compensated every time someone uses what they made. Do you have some sort of problem with buying a used car without giving the manufacturer a cut?

  • Re:I lost count (Score:4, Insightful)

    by ipfwadm ( 12995 ) on Thursday May 25, 2006 @03:19AM (#15399715) Homepage
    Interesting... I am an artist, and I find your position entirely foreign and incomprehensible. Let's look at a couple scenarios:

    Scenario 1: Person (a) buys a photograph from me for $100. Five years from now, he sells it to person (b) for $100, who also keeps it for five years.

    Scenario 2: Person (c) buys a photograph from me for $100 and keeps it for ten years.

    At the end of these ten years, in both scenarios there has been a net transaction value of $100. All $100 of this is in my pocket. Also in both scenarios, only one of my photographs has left my hands (I did not lose a second photograph when the first was sold, nor did a second come into being). In both scenarios my photograph has gotten ten years of use. The only difference is that in the first scenario this use was split between two people, whereas in the second it was a single person. So how is this anything like theft? The only way I lose out is if person (a) sells to person (b) for a (inflation-adjusted) profit. But this is generally unlikely during an artist's lifetime, and would basically never happen with mass-produced works such as CDs, DVDs, and games.

    You may argue that person (a) selling to person (b) cost me a sale because person (b) did not buy directly from me. But maybe I raised my prices when person (b) decided to buy, and he didn't like my higher prices. Maybe person (a) actually sold it for a loss, and person (b) was unwilling to pay the full $100. There are a number of reasons why person (b) may never have been a potential sale. Further, person (a) may not have been willing to buy in the first place if there was no secondary market.

    The only way you could argue it's theft is if the original purchaser has gotten "full use" out of a work. But it is impossible to get full use out of an item that has "unlimited usage", as you put it. Say I buy a DVD, for example. I watch it 100 times. I watch it so many times I don't think I could ever watch it again. Have I gotten full use out of it? No, of course not - I could change my mind and watch it 100 more times. Or I could sell it after those initial 100 screenings, and the purchaser could watch it 100 times. Either way, the DVD is getting watched 200 times. The copyright owners didn't lose out by having the secondary purchaser watch it 100 times any more than they lost out by me watching it 100 more times.

    Really what this sounds like, though, is a thinly-veiled desire to do away with "unlimited usage" items entirely and, for example, make DVDs self-destruct after x number of viewings. Because, you know, me getting 400 hours of enjoyment out of a $15 DVD just HAS to be theft.
  • Re:I lost count (Score:3, Insightful)

    by Kjella ( 173770 ) on Thursday May 25, 2006 @06:24AM (#15400181) Homepage
    Yeah, yeah, your in-laws. That's kind of like those old "My friend" stories...

    It's "My friend" class 2 - when you wouldn't even admit to being friends with someone with a Neil Diamond CD. Remember, you can choose your friends but not your relatives (or I guess you could technically choose your in-laws, but it's sort of a package deal).

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