I see a lot of comments here comparing the profits of video games to cars or TVs or other physical utilitarian devices.
The main difference, in my opinion, is that in the first year of owning a car or TV, only the first owner (or first owner's family) can get value from it. In the first year of life of a game disc, 12 people can get value from that one disc. And the value of the game disc is the same and never degrades or needs maintenance.
I don't think you'll see Bungie, Epic, or Infinity Ward complaining about this. They've figured it out... you sell people the game and give them a great multiplayer mode (or some other reason) to hang onto it, and they will. Used copies will be few and far between.
The people who are really suffering are those that make truly fantastic single player games. Prince of Persia comes to mind... it was great, I thoroughly enjoyed it. All 20 hours of it... and on my schedule, that's 5 days of having the game to do 100% of everything there is to do. So I rent it. I actually rent all games that have no multiplayer aspect. The only games I purchase are the ones I can see myself playing online still, 6 months down the line. You might say make the games longer, which is an option, but I personally don't WANT to invest more than 20 hours into any single player experience, and to be honest, when it is longer, like 100+ hours for a Final Fantasy game, you spend most of that time not having fun, just trying to level up to do everything.
This applies to DVDs and to a lesser extend music as well. One DVD can easily fully serve a group of 20 people in one week if they pass it around and watch it in groups.
I'll leave you with this... I think more than the disc, game companies, movie companies, etc are selling you the experience. The experience of playing through the game or the experience of watching the movie. And I believe they should be compensated for each experience they provide. I do think that $60 is a bit much for a video game, but I think it's to compensate for rentals and used game sales. Once everything goes digital, we will see a shift. Let's say that for every 1 copy of a new game that is bought, 2 people probably play that disc, on average, could be more or less, not sure. So $60 provides 2 play experiences. The publisher sees approx $30 per experience in this model, but assuming the first copy was $60 and the used copy was $55. That's $115 spent, and Gamestop probably paid the original owner about $25 for it, so they paid $35 for the experience. If the second owner sells it back very quickly for $25, then he would have paid only $30, bringing this in line with the above of $30 per experience. So $65 spent total for two plays, or $32.5 per experience. If the publishers had complete control over this, the players could have each spent less money for the same amount of, or more (because they get to keep the game), game.
However, it may be be a utopian thought to think the publishers would pass these savings onto us completely, I like to dream.
