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Sony condemns pre-owned market

ziran

Member
Sony condemns pre-owned market:
http://www.mcvuk.com/newsitem.php?id=747
The erosion of High Street software pricing is one of the hottest issues in retail at the moment, and this week market-leader Sony has laid its cards on the table by placing the blame squarely at the feet of the pre-owned market.

Following the news that several publishers are investigating ways to restrict or prevent the sale of used games (MCV 9/12), Sony has now also condemned the practice.

“The blame for heavy discounting of current releases can be laid at the door of the pre-owned market,” SCE UK’s commercial director Kevin Jowett (pictured) told MCV. “When consumers see pre-owned titles for £10 or £15, this fosters the perception that this is the realistic price for all games, and the new release roster looks unrealistically priced.”

Despite this, the firm is still confident that its Platinum range of budget PS2 titles is still viable and will not be subject to any imminent price cuts.

“Platinum offers gamers a cheaper way to buy games with a proven heritage,” Jowett added. “A Platinum release is an assured-quality title, whereas a discounted release may not meet these same exacting standards.”

Retail is in a state of flux following the aggressive discounting that characterised the run-up to Christmas, and many publishers feel they must resort to further reductions in an effort stop their titles sliding down the charts.

BVG’s The Chronicles of Narnia jumped ten places up the ChartTrack top 40 last week, thanks to a 16 per cent sales increase, following its slashing to £19.99 at most High Street retailers.

Along with this, titles such as Ubisoft’s Prince of Persia: Two Thrones and King Kong slipped back down to £19.99 at some retailers after recovering back towards RRP immediately after Christmas.
The second hand market is obviously a problem for the industry but I think Publishers need to realise videogames are too expensive, which can only lead to bad things like consumers not taking risks and to say "A Platinum release is an assured-quality title, whereas a discounted release may not meet these same exacting standards.”... :lol
 
It's all bullshit, 500-650kr for a game in Sweden ($70-80) is not viable, cutting prices to $19.99 would cut piracy to virtually nothing.

There is a reason 80% of all swedish PS2's are chipped and it's not that people want to play imports.
 
Yeah, because god forbid the game exclusive retail chains that sell your goods should actually make money.

Not with the work of others. Each one has his own business and each one should respect his part.

If retailers don´t respect the publisher business, you will see how publishers won´t respect retailers work. Personally, I expect big changes in the industry videogame for the future.
 
Gaijin To Ronin said:
Personally, I expect big changes in the industry videogame for the future.

Online delivery will save us all. We just need to wait a couple decades more.
 
Gaijin To Ronin said:
Not with the work of others. Each one has his own business and each one should respect his part.

If retailers don´t respect the publisher business, you will see how publishers won´t respect retailers work. Personally, I expect big changes in the industry videogame for the future.
retailers margins are pretty low on sw and virtually non-existent on hw, so they have to rely on selling large volumes of games. if this isn't happening what's the retailer going to do?

the 2nd hand market is great, because it gives consumers a chance to try games they wouldn't be able to and get major titles at a decent price and retailers a chance to make a good profit.

imo the equivalent of $50-$60 is too much for a videogame.
 
Pre-owned games are the only way some people can afford to buy them, are they going to stop the sale of pre-owned DVDs or CDs aswell?
 
Publishers should be lucky Western used games in general are not as pristine as Japanese games. I've said this before, but Japan makes it possible for me to never need to buy a new game again unless I want it on release.
 
Bowen_B said:
Second hand FTW
Notice this problem is only in Europe where they charge double

Not to mention the Italian governament aims to up the taxes on the "adult content" stuff. Videogames included of course. :/
 
“The blame for heavy discounting of current releases can be laid at the door of the pre-owned market,” SCE UK’s commercial director Kevin Jowett (pictured) told MCV. “When consumers see pre-owned titles for £10 or £15, this fosters the perception that this is the realistic price for all games, and the new release roster looks unrealistically priced.”

No, the blame can be laid at the door of bad games and the more, well/better informed consumers reading up on the games before the take the plunge and buybuybuy. Plus, they know future pricedrops are a given, and are more than willing to wait if it'll save them a little extra $$.

But really, the majority of pre-owned marketers are people who're just buying a game on the cheap with little to no homework involved beforehand, IMO.

Make better games and consumers will consider dropping $50+ on a video game they heard/read was worth it's pricetag. Look at eBay, quality games, sill sealed, go for HIGH prices and people pay them because THEY deem it worth every cent.

So... THERE!
 
Jerkface said:
Pre-owned games are the only way some people can afford to buy them, are they going to stop the sale of pre-owned DVDs or CDs aswell?

I wish i could agree, but unless its older than dirt, most preowned games are only like $5 cheaper than a brand new copy. People can't afford an extra $5? The Preowned market exists to line the pockets of the retailer, who can easily make $20-30 profit off the sale of a used, popular, relatively recent game.
 
Gaijin To Ronin said:
Personally, I expect big changes in the industry videogame for the future.
I fully expect steam-like distribution systems to pwn a lot of retailers. Unfortunatelly it will also hurt small shop owners, but maybe they will be able to balance their business with different orientations (selling more than just games and hardware) I've been a long fan of big boxes and thick booklets but if there's a company out there that manages to sell games for a 30% less and allows me to save them on a disc as a backup, they will earn a new customer.

Anyway, after the whole euro PSP fiasco Sony can choke on my dick.
 
ziran said:
Someone needs a reality check!

The second hand market is obviously a problem for the industry but I think Publishers need to realise videogames are too expensive, which can only lead to bad things like consumers not taking risks
Why are people acting as if videogames are too expensive now, when they have been $50 for ten years, and even more expensive prior? What other market has ever sustained itself while never adjusting for inflation, let alone drastic increase in cost? Even stamps get more expensive, and this is something you need to realize, not publishers. I hate that games are getting more expensive, too, and I always try to defend the interests of the people rather than the big corporate entities, but I also realize that I would rather have games, than not have them. It's as simple as that.
 
Ninja Scooter said:
I wish i could agree, but unless its older than dirt, most preowned games are only like $5 cheaper than a brand new copy. People can't afford an extra $5? The Preowned market exists to line the pockets of the retailer, who can easily make $20-30 profit off the sale of a used, popular, relatively recent game.

Some people can wait 6 months to a year for a game, amazing as that sounds!
 
When someone buys a piece of crap or something they just don't like at the equivalent of $50-60+ they're goona think twice about doing it again.

Online delivery might help, but that's several years away imo, but retailers know this is coming which is essentially going to screw their profit!
 
Andy787 said:
Why are people acting as if videogames are too expensive now, when they have been $50 for ten years, and even more expensive prior? What other market has ever sustained itself while never adjusting for inflation, let alone drastic increase in cost? Even stamps get more expensive, and this is something you need to realize, not publishers. I hate that games are getting more expensive, too, and I always try to defend the interests of the people rather than the big corporate entities, but I also realize that I would rather have games, than not have them. It's as simple as that.
The European Union sued Nintendo for making their games too expensive.
It's always been a problem over here.
 
Andy787 said:
Why are people acting as if videogames are too expensive now, when they have been $50 for ten years, and even more expensive prior? What other market has ever sustained itself while never adjusting for inflation, let alone drastic increase in cost? Even stamps get more expensive, and this is something you need to realize, not publishers. I hate that games are getting more expensive, too, and I always try to defend the interests of the people rather than the big corporate entities, but I also realize that I would rather have games, than not have them. It's as simple as that.
Last I checked, stamps are made out of the same material they were 10, 15, 20 years ago, while games, on the other hand, have transitioned from highly expensive cartridges to dirt cheap CD/DVDs. In my mind, which lacks expertise in this field, the many benefits offered by discs should outweigh rising development costs for longer than it has. Yeah, it's unreasonable for the consumer to expect games to always cost $50, but asking for that price point to remain firm for at least one more generation probably isn't asking too much. Or maybe it is; I'd like to know.
 
Andy787 said:
Why are people acting as if videogames are too expensive now, when they have been $50 for ten years, and even more expensive prior?

On the other hand why are Sony suddenly whinging about the pre-owned market when it's existed for more than 20 years with no problem? The fact that so many need to sell off their games in order to afford new ones shows a lot of people are unhappy about the pricing of new software.

I always used to do that when I was a kid, back in the SNES days. My collection never really 'grew' because once I'd played a game I traded it in towards a new one. Nothing wrong with that. If they got rid of the pre-owned market then people wouldn't suddenly have enough money to buy all their games new. Nothing would change.
 
You're all poor broke wusses if you think that 50-60 USD is "unrealistically priced". Japan is a tried and proven market for games that start at 60 USD and climb up to 90 USD! And it STILL WORKS! :lol :lol :lol
 
duckroll said:
You're all poor broke wusses if you think that 50-60 USD is "unrealistically priced". Japan is a tried and proven market for games that start at 60 USD and climb up to 90 USD! And it STILL WORKS! :lol :lol :lol
Because what works for Japan works everywhere else.
 
retailers margins are pretty low on sw and virtually non-existent on hw, so they have to rely on selling large volumes of games. if this isn't happening what's the retailer going to do?

In that case, they should abandon. That is what happens when you have a non profitable business.

the 2nd hand market is great, because it gives consumers a chance to try games they wouldn't be able to and get major titles at a decent price and retailers a chance to make a good profit.

In any case, that money should be for publishers/studios, or at least a fair percentage. Things as there are now are abusive in eyes of many industry people.

You think? I'm pretty certain it'll all just kinda stay the same from here on out...

That is what you think or what you hope? Talk with RP and people of this industry and you will note this is becoming a major problem. Lot of companies don´t hesitate to use draconian ways of security as Star Force, do you really think they will hesitate when someone provides an effective way to put a stop to second hand market? In fact, there are people pushing for it. Soon or late, you will see it.

I will give you a piece of reality, this is no a opinion. Many people in the industry, when you ask, will say that second hand market is affecting badly to their business. Many people think people doen´t buy more games (at platinum or new) because the second hand market. True of false, it´s not important here. This is what lot of people will answer you, that is what they see.

As I said, they are starting to pushing things. Not now, but in some years the second hand market will be dead or controlled by publishers.
 
Jerkface said:
Some people can wait 6 months to a year for a game, amazing as that sounds!


what does that have to do with the used game market? Wait 6 months for a game to drop to $30 and the used copy is at $25. Or another 6 months til its at $20 and the used is $15.
 
Yeah, European pricing is crazy.

Here in the UK £40 for a game is way too high, it's over $70!

£45 and £50, next gen prices, are ~$80 and ~$90 respectively!
 
Gaijin To Ronin said:
I will give you a piece of reality, this is no a opinion. Many people in the industry, when you ask, will say that second hand market is affecting badly to their business. Many people think people doen´t buy more games (at platinum or new) because the second hand market. True of false, it´s not important here. This is what lot of people will answer you, that is what they see.

And again, do you really think people, especially kids, will suddenly have enough money to buy all their games new, if they got rid of the second hand market? No. It just means they'd buy less games.
 
I fully expect steam-like distribution systems to pwn a lot of retailers. Unfortunatelly it will also hurt small shop owners, but maybe they will be able to balance their business with different orientations (selling more than just games and hardware) I've been a long fan of big boxes and thick booklets but if there's a company out there that manages to sell games for a 30% less and allows me to save them on a disc as a backup, they will earn a new customer.

Necesity push imagination. I love boxes and manuals (when they put some work on them). I hope that the traditional model don´t dissapear and I hope that small shops can keep with the business.

The problem comes from big retailers. They are pushing al this too far and publishers has noted it.
 
ziran said:
Yeah, European pricing is crazy.

Here in the UK £40 for a game is way too high, it's over $70!

£45 and £50, next gen prices, are ~$80 and ~$90 respectively!

Exactly. That's why I import most of my games from DVD Box Office in Canada! Much cheaper than the ridiculous UK prices.
 
And again, do you really think people, especially kids, will suddenly have enough money to buy all their games new, if they got rid of the second hand market? No. It just means they'd buy less games.

My opinion is unimportant. I´m not Ken Kutaragi or any big (or small) figure on the industry. I´m just translating what I get from my talks. You can take it the way you desire.
 
Gaijin To Ronin said:
In that case, they should abandon. That is what happens when you have a non profitable business.



In any case, that money should be for publishers/studios, or at least a fair percentage. Things as there are now are abusive in eyes of many industry people.

They SELL us the disc. A retailer buying it from a person and selling it to other people is NOT their business, it is a series of PRIVATE transactions.

Next time you sell to anyone ANYTHING you have, be sure to look-up who made that item and send them a small check.

Videogame makers know they have no ground to stand on in this case and they do want to move to online distribution methods (at least partially, they could devise a way in which your game is registered needs a software download to be installed in the console to play and the disc you bought and the software in the console need to both be there for the game to start (of course registering things would mean you could download it from the PC too, the online update I mean, like you do for the XBOX 360's BC updates).

I am not sure though that a world where you cannot sell music CD's, DVD's (or their successors) or game discs to anyone would be what we like. I seriously doubt that after they were able to stop second-hand sales that prices would drop massively as they promise, we would just end up getting screwed over and we probably will.

How many people would buy as much new stuff as they do now, especially at full prices, if they knew they could not sell it to others ever ?

Think about the hypotetical case in which also game consoles were bound to the user who purchased them (registration+activation) and it would be worth noting to sell it. It would be grand when they keep doing refreshes of the same hardware... :lol.
 
Next time you sell to ANYONE anything you have, be sure to look-up who made that item and send them a small check.

I just sell what I make myself. My writing.

They SELL us the disc

They don´t see it that way. Who provides updates? technical service? support? new online content?

A hint: not retailers
 
OpinionatedCyborg said:
Last I checked, stamps are made out of the same material they were 10, 15, 20 years ago, while games, on the other hand, have transitioned from highly expensive cartridges to dirt cheap CD/DVDs. In my mind, which lacks expertise in this field, the many benefits offered by discs should outweigh rising development costs for longer than it has. Yeah, it's unreasonable for the consumer to expect games to always cost $50, but asking for that price point to remain firm for at least one more generation probably isn't asking too much. Or maybe it is; I'd like to know.
I also said cost. It doesn't take four years and a hundred men to press stamps.

Merlin said:
On the other hand why are Sony suddenly whinging about the pre-owned market when it's existed for more than 20 years with no problem? The fact that so many need to sell off their games in order to afford new ones shows a lot of people are unhappy about the pricing of new software.
Sony hasn't been in the market for 20 years. And when they weren't, Nintendo felt the same way. Maybe you aren't aware, but Nintendo actually tried to fight Blockbuster, claiming that videogame rentals were destroying their sales. This was 1990.
 
Andy787 said:
I also said cost. It doesn't take four years and a hundred men to press stamps.


Sony hasn't been in the market for 20 years. And when they weren't, Nintendo felt the same way. Maybe you aren't aware, but Nintendo actually tried to fight Blockbuster, claiming that videogame rentals were destroying their sales. This was 1990.

Sony IIRC has also been actively fighting used games in Japan for the last few years in court... I believe they lost.
 
Gaijin To Ronin said:
They don´t see it that way.

It does not matter what they see.

They probably see us getting an unjust bargain at $60 per game while a nice $99.98 would be a bit fairer towards the great value and opportunity they give us.

Again, they have no legal ground in their quest to stop used game sales (private-to-private, private-to-retailer or retailer-to-private).

They have to realize that people around the world are not making much more money year after year, wages are not increasing uber-fast: the current market seeks new way of extracting more and more of the paycheck people bring home every month. There has to be a limit though: life is not costing less and less so it is not like people's monthly expenses get lower and lower as time goes on. I think the multi-media industries realize this and before they force their industry to a halt (with customers deciding there are better ways to spend their wages maybe) they will realize that a 200% yearly growth realized not thanks to market expansion (sooner or later every market reaches some kind of saturation or slow growth level) but thanks to more and more ways to extract more money from your existing user-base is not something very forward-looking.

They don´t see it that way. Who provides updates? technical service? support? new online content?

They provide tech support for as many people as those who bought the game new: they provide it per users (for those who call Sony for whatever reason... it is not like they are doing tech support for a mainframe software or something though...).

It is also the retailer that will replace your game disc if it does not work and does not receive a dime from the publishers for it.

New online content ? Last I checked, with the micro-transactions system all players are setting-up, it is the user who plays the game and downloads the extra content that pays for it.

It is the user who pays the subscription to services like XBOX LIVE too.
 
Gaijin To Ronin said:
They don´t see it that way. Who provides updates? technical service? support? new online content?
A hint: not retailers

Console games, by and large, don't require updates, technical service, support, or new online content. Console games are, essentially, "fixed" items.

While I understand why game companies dislike the used game market, they don't have a leg to stand on -- you can't suddenly ban resale of goods in one market. If they have issues with certain companies pushing used stock over new stock, why don't they simply refuse to supply those companies with new stock? Wal-Mart pushes more software than EB or Gamestop (last I heard), and they don't sell used merchandise...

I still think games are overpriced if the used market is significantly impacting the new market. Companies have to reduce costs -- and yes, that might have to come at the expense of "fancy development." Is there any chance that game development has simply gotten too expensive? Theoretically, games should cost less to sell than ever before (actual cost per unit for licensing, replication, etc..), but they don't.
 
Console games, by and large, don't require updates, technical service, support, or new online content.

For now...

Online and connectivity is becoming bigger and bigger in this industry. Products are more and more controlled. Just look at PSP, Sony has killed the scene and transform piratery in something marginal for their system. This is all a Troy´s Horse. Maybe not this generation, but in the future you will see more of this type of things

It does not matter what they see.

That is funny.

Sorry, but if they decide to do something about it, they will do. No matter how you, I or anyone see it. It´s their business, they will run as they think is best.

Second hand industry is pretty easy to banish. Thye just need to reach an agreement to put a minor control (maybe a registration code) and the second market will dissapear for the big market.
 
Gaijin To Ronin said:
I just sell what I make myself. My writing.

I forgot... even if you lend it to them or give them as a free gift (your used item I mean).

Also, if you have friends (or other people that do not live in your household) reading your news-paper, your magazines, watching your TV or a movie with you.

Think about it... those guys are freeloaders that do not pay anything to the TV makers, to the publishers of the news-paper and of the magazines you have or even to the cable company or the movie publishers who let you buy that movie disc. Don't you realize how much profit loss you are causing them ?
 
Panajev2001a said:
Again, they have no legal ground in their quest to stop used game sales (private-to-private, private-to-retailer or retailer-to-private).
Perhaps not, Pana, but I think you're missing the big point; at the end of the day, videogame retailers, are in fact, competing, with their suppliers --the publishers, the developers, the industry.

When you go to buy a game at Electronics Boutique or GameStop, which copy of the game you choose is the guy behind the desk going to try to sell you? The used one. It's what EB and GS make him do. It is literally part of their job to meet a quota on used game sales.
 
Think about it... those guys are freeloaders that do not pay anything to the TV makers, to the publishers of the news-paper and of the magazines you have or even to the cable company or the movie publishers who let you buy that movie disc. Don't you realize how much profit loss you are causing them ?

Oh, they pay: with his time and attention. This type of business are so influential and make so much money and they just need you care of them. You don´t need to pay with money, there are other ways.

Videogame business doen´t work in the same fashion (and it won´t at least publicity becomes a bigger thing).
 
Gaijin To Ronin said:
For now...

Online and connectivity is becoming bigger and bigger in this industry. Products are more and more controlled. Just look at PSP, Sony has killed the scene and transform piratery in something very marginal for their system. This is all a Troy´s Horse.

People already found other ways and will keep trying... It is companies' morality that tells them to do what they do (they do morally just things in the system of values of a profit based corporation) and customers do what is best for them, both do so as far as they can.



That is funny.

Sorry, but if they decide to do something about it, they will do. No matter how you, I or anyone see it. It´s their business, they will run as they think is best.

You remind me of that The Simpsons episode where Mr. Burns is holding Lisa's and Bart's puppies in hostage to make them fur coats or something.

mr_burns.gif


Mr. Burns: "Come on, call someone who cares!"

*Mr. Burns hands cell-phone to Lisa*

*Lisa dials 9-1-1*

Mr. Burns: "Grrr, give it back!"

*Mr. Burns yanks the phone off Lisa's hands*
 
Gaijin To Ronin said:
Oh, they pay: with his time and attention. This type of business are so influential and make so much money and they just need you care of them. You don´t need to pay with money, there are other ways.

You do not get it, those people are watching THEIR content without paying a DIME!!!!!!!!

If they come enough times to your house, they will probably never buy their own copies and they might even ask you to lend them your copy!!!! YOU CRIMINAL!!!!
 
Andy787 said:
Perhaps not, Pana, but I think you're missing the big point; at the end of the day, videogame retailers, are in fact, competing, with their suppliers --the publishers, the developers, the industry.

I know and I support fair competition... so ?

When you go to buy a game at Electronics Boutique or GameStop, which copy of the game you choose is the guy behind the desk going to try to sell you? The used one. It's what EB and GS make him do. It is literally part of their job to meet a quota on used game sales.

I do not know about you, but I never listen to EB's clerks suggestions. I go look for games, I look myself for new and used ones and if I ask them about games is because I am looking for a new or used copy and cannot find it.

Even if they had no clerks and only security guards that checked that you did not steal anything and automatic cash registers, people would STILL buy used.

People do STILL buy used online, on amazon, on e-bay, etc...
 
You remind me of that The Simpsons episode where Mr. Burns is holding Lisa's and Bart's puppies in hostage to make them fur coats or something.

Forgive me for the reality check. But I think you are failing to see that I´m just translating what I get, is not exactly my very own opinion (even if agree with it in some points).

I would like to have an industry that allows me to buy any product from any place without problems. In japanese? no problem, have fun. Sadly, they put barriers for me doing it. I do what I can to jump this barriers. But the reality is that they don´t want to please me as consumer.

What I´m trying to say is that sometimes, consumer wishes are not the same that companies wishes. Hope you don´t get a bad feeling from me, I appreciate a lot some of your threads and it will be be a shame you take me in a bad way.
 
You do not get it, those people are watching THEIR content without paying a DIME!!!!!!!!

And I tell you that money is not the ony way of payment, specially in the media. They are seeing the publicity that really pays the television, the newspaper, the magazines and everything. So, even if they don´t pay with money, they pay with attention and time (and believe me, in the media this is even more important that the money you pay for the physical thing).
 
Gaijin To Ronin said:
Forgive me for the reality check. But I think you are failing to see that I´m just translating what I get, is not exactly my very own opinion (even if agree with it in some points).

I would like to have an industry that allows me to buy any product from any place without problems. In japanese? no problem, have fun. Sadly, they put barriers for me doing it. I do what I can to jump this barriers. But the reality is that they don´t want to please me as consumer.

What I´m trying to say is that sometimes, consumer wishes are not the same that companies wishes. Hope you don´t get a bad feeling from me, I appreciate a lot some of your threads and it will be be a shame you take me in a bad way.

Thanks for the explanation (no hard feelings at all :)). I do realize that companies whishes and customers wishes are different.

You know what ? It has to be. It is right for it to be so.

Corporations (the ones that strive for profits) and customers are two different beings with very different purposes and goals: one's mission is to make the most money possible selling the lowest possible value they can get away with (in principle) and the other's mission is to get the most possible value paying to the content older the least amount of money they can get away with (in principle).
 
Gaijin To Ronin said:
And I tell you that money is not the ony way of payment, specially in the media. They are seeing the publicity that really pays the television, the newspaper, the magazines and everything. So, even if they don´t pay with money, they pay with attention and time (and believe me, in the media this is even more important that the money you pay for the physical thing).

I know that and it is the explanation why all private TV channels in Italy (including those doing digital broadcasting Over The Air) do not ask for a dime from their customers. The market grew this way.

In other countries, see the U.S., they are much more sensible to it and they do not think their only profit shold come from advertisement, but they do get part of your Cable TV subscription.
 
Panajev2001a said:
I do not know about you, but I never listen to EB's clerks suggestions. I go look for games, I look myself for new and used ones and if I ask them about games is because I am looking for a new or used copy and cannot find it.

Even if they had no clerks and only security guards that checked that you did not steal anything and automatic cash registers, people would STILL buy used.

People do STILL buy used online, on amazon, on e-bay, etc...
Yes, some people always buy used, but when it's practically shoved down your throat, many more will be turned to it. It shouldn't be legal to try and sway/convince someone to forgo the new game and take the used one(OH it's got no scratches, it's cheaper, blah blah blah.). Not to mention replacing new games on the stand with used ones. I've stopped going to gs, eb, since their stores have begun to look quite ugly as most shelfspace has been filled with ugly yellow/red pre-owned s/w.

How can you compete when you're thrown off the shelf into a small corner, if not a recent release a remote one, and if the costumer manages to find your title he's swayed to buy used instead?

Only thing they need to do is replace the overt stickers/signs with very small ones on the back, and clean up scratches, and consumers might not even realize they're buying used most of the time, given the vast prominent store space given to it. It is a direct threat to the industry.
 
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