yowasuphomeboy

According to Michael Pachter, an analyst at Wedbush Morgan, used game sales account for one-third of the total game sales in a year, coming in at over 100 million units as a $2 billion industry. He claims that game publishers shouldn't worry, though, as these sales occur outside of a new game's launch window and the practice actually drives new game sales by providing additional funds to a potential buyer.

While the numbers are very interesting, I disagree with Pachter's analysis. Publishers should look at used game sales as two billion dollars of unrealized profits. The behavior shows that consumers are willing to buy games outside of the initial launch window as long as it is at a reduced price. If publishers decreased prices on games on a sliding scale as time went on, pricing the product competitively with used versions, they could capitalize on massive untapped profits.

This makes the most sense for digital distribution, where product "inventory" just scales as needed for demand. Of course, Pachter believes serious digital distribution of full games on consoles won't happen until 2019. Luckily Microsoft disagrees, and will have classic 360 titles available for download through LIVE by year's end. The biggest challenge to digital distribution for core games isn't really hard drive space (I'd expect to see bigger hard drives with Natal packages come 2010), but retail chains that look unfavorably on day and date digital releases.

With test cases for digital distribution of older (but still current-gen) games happening this year, and companies like EA approaching game creation less as products than services, I do think the publishers can shift a good deal of that $2 billion used game market into revenue. Which is an important project to focus on, as Pacher's argument about used sales fueling new game sales doesn't really hold up to closer examination.

The assumption likely rings true for person-to-person sales of used game titles. A used game buyer is saving substantially over a new version of the title, and as a result has more cash on hand to buy a new release. The seller of the used game sees significant revenue from the exchange, which can amount to near half the price of a new title.

But in a model where GameStop or Best Buy is acting as a third party on the exchange, the margins are so severely in favor of the middleman that publishers should be sweating. A used game seller walks out of the exchange with pocket change, and the new buyer of the title is getting a minimal discount over a new copy. If publishers provided a digital alternative a few months from release at the price of the used title minus the price of a "sale" of the game to a store, the total consumer savings would be the same, and the publishers would be raking in large and otherwise unrealized profits.

For marketers, game publishers moving to better engage used game buyers will be a very good thing, as digital distribution and games as services both open up new opportunities for brand involvement. Measurement will benefit as well, increasing the tracking of actual title reach from what appears to be the current 66% estimation (based on new game sales) to a more reliable number. The used game market will still exist for a while yet, but I believe it will shrink down along with piracy as publishers and platforms roll out competitive measures.

via mediapost

When people talk about the inevitable downfall of retail videogames from digital distribution, the one topic that always gets mentioned is undoubtedly Steam. However, Valve is here to set the record straight, and clear up what the company views to be a common misconception.

Talking to GamesIndustry.biz, Valve’s Doug Lombardi states that “A lot of the ‘Steam is there to compete with retail’ stuff is sort of sensationalized.” Not only do Steam’s free weekends lead to more players, and more digital downloads, but in the case of Left 4 Dead, the promotion also gave the retail Computer and Xbox 360 versions of the popular game an increase in sales.

“[Steam is] about making the games better,” states Lombardi. “It’s currently a great marketing and promotions channel, and yeah we sell games over it and that’s great, but whether people purchase games at GameStop, or GAME UK, or on Steam, we get paid.”

“So for us, whichever cash register you want to pay at, that’s fine.” Love the honesty, and you know what, it’s all about consumer choice in the end.

Via Destructoid & Techchill

On Day One of the Annual Summit, Shop.org will host the Online Retail Boot Camp. This daylong event, held in conjunction with the summit, will feature industry experts, each providing seven important steps in the most important e-commerce topics, such as search, e-mail, social networking, analytics and merchandising for conversion. Boot Camp is great for those new to e-commerce, teams supporting the efforts of e-commerce and those wanting a refresher course in these practices. Learn more.

--Mother's Day and Graduation Provide Boosts to Flowers, Gifts and Greetings Sites in May --Coupon Sites Surge as Americans Continue to Shop for Bargains Online

RESTON, Va., June 23, 2009 /PRNewswire-FirstCall via COMTEX/ -- comScore, Inc. /quotes/comstock/15*!scor/quotes/nls/scor (SCOR 12.16, +0.05, +0.41%) , a leader in measuring the digital world, today released its monthly analysis of U.S. consumer activity at the top online properties for May 2009 based on data from the comScore Media Metrix service. May saw online visitation surge at gift- related sites as Mother's Day and other seasonal events prompted many to search for gifts online. Coupon sites also witnessed strong growth as bargain-hunting remained a top priority for many Americans.

"Mother's Day, along with high school and university graduations and the beginning of wedding season, make May a traditionally strong time of year for flowers, gifts and greetings sites," commented Jack Flanagan, executive vice president of comScore Media Metrix. "Coinciding with gains to these sites in May we also saw a sharp increase in the number of visitors to online coupon sites this year. As rising summer gas prices put the squeeze on Americans' overall purchasing power, online coupon sites have become an attractive resource for reducing retail costs during this gift-giving season."

Mother's Day Boosts Gift Sites in May

With May 10 marking Mother's Day in 2009, the Flowers/Gifts/Greetings category climbed 16 percent to nearly 36 million visitors as Americans searched for gifts for mom. American Greetings Property led the category with 12.4 million visitors, followed by ProFlowers.com with 5.6 million visitors (up 255 percent versus the previous month) and FTD.com with 4.1 million visitors (up 123 percent).

The Jewelry/Luxury Goods/Accessories category also experienced double-digit growth, increasing 13 percent to nearly 18 million visitors during the month. Swarovski Crystal's site, Swarovski.com, led the category with 2.4 million visitors, an increase of 125 percent versus April. Other sites in the category experiencing gains included Kay Jewelers (up 47 percent to 973,000 visitors) and Tiffany & Co. (up 15 percent to 812,000 visitors).

Coupon Category Grabs Top-Gaining Spot

With gas prices climbing and consumer discretionary income declining, millions of Americans turned to online coupon sites in May for better deals on their retail purchases. The Coupon category posted a particularly strong month, surging 19 percent to 34.7 million visitors to lead as the top-gaining category in May. Coupons Inc., which includes Coupons.com, captured the #1 position with more than 15 million visitors, a gain of 85 percent from the previous month. Eversave.com ranked second with 3.8 million visitors, followed by RetailMeNot.com with 3.5 million visitors.

Americans "Say Cheese" in May

Photo sites witnessed strong growth in May as visitors flocked to sites to post, view and order photos from such seasonal events as graduations and weddings. More than 90 million Americans, slightly less than half of the total U.S. online population, visited a photo site in May, marking a 10-percent gain versus the prior month. Facebook.com Photos led the category with 34.6 million visitors (up 5 percent), followed by Photobucket.com LLC with 28.1 million visitors (up 13 percent) and Flickr.com with 24.4 million visitors (up 11 percent).

Top 50 Properties

Google Sites continued to lead as the most visited property in May with 157 million visitors, followed by Yahoo! Sites with 151.3 million visitors and Microsoft Sites with 125.9 million visitors. Wal-Mart moved up 3 spots to #20 with 33.7 million visitors, while JPMorgan Chase Property jumped 7 spots to #38 with 21.4 million visitors.

Top 50 Ad Focus Ranking

Platform-A led the May Ad Focus ranking, reaching 91 percent of the 193.8 million Americans online. Yahoo! Network ranked second, reaching 87 percent, while Google Ad Network ranked third with an 85 percent reach. Yahoo! Sites and Google both climbed one spot grabbing the #6 and #7 positions, respectively.

   Table 1

   comScore Top 10 Gaining Properties by Percentage Change in Unique
    Visitors* (U.S.)
   May 2009 vs. April 2009
   Total U.S. - Home, Work and University Locations
   Source: comScore Media Metrix

                                         Total Unique Visitors (000)

                                                                    Rank by
                                                                    Unique
                                    Apr-09     May-09     % Change  Visitors

   Total Internet : Total Audience 192,875    193,825          0       N/A
   PROFLOWERS.COM                    1,575      5,590        255       221
   OPRAH.COM                         4,420     12,118        174        88
   Yum! Brands Inc.                  5,458     14,741        170        68
   BuddyTV                           3,108      6,539        110       183
   Coupons, Inc.                     8,167     15,084         85        64
   Jango Music Network               6,922     11,359         64        96
   Sony Online                      12,998     19,121         47        50
   GiantRealm                        3,916      5,618         43       219
   Kraft Foods                       5,441      6,959         28       165
   Meredith Women's Network          8,438     10,698         27       101

   *Ranking based on the top 250 properties in May 2009.

   Table 2

   comScore Top 10 Gaining Site Categories by Percentage Change in Unique
    Visitors (U.S.)
   May 2009 vs. April 2009
   Total U.S. - Home, Work and University Locations
   Source: comScore Media Metrix

                                           Total Unique Visitors (000)

                                                                  %
                                           Apr-09    May-09     Change

   Total Internet : Total Audience        192,875   193,825        0
   Services - Coupons                      29,179    34,723       19
   Community - Gay/Lesbian                  2,902     3,427       18
   Retail - Flowers/Gifts/Greetings        31,019    35,903       16
   Retail - Jewelry/Luxury
    Goods/Accessories                      15,766    17,858       13
   Services - Photos                       83,041    90,972       10
   News/Information - Politics             10,630    11,642       10
   Retail - Food                           16,568    18,046        9
   Community - Teens                       24,142    26,236        9
   Entertainment - Humor                   24,115    26,000        8
   Community - Home                        29,857    31,893        7

    Table 3

   comScore Top 50 Properties (U.S.)
   May 2009
   Total U.S. - Home, Work and University Locations
   Unique Visitors (000)
   Source: comScore Media Metrix

                                       Unique
                                       Visitors
   Rank  Property                       (000)

    Total Internet : Total Audience   193,825
    1  Google Sites                   157,011
    2  Yahoo! Sites                   151,262
    3  Microsoft Sites                125,884
    4  AOL LLC                        106,968
    5  Fox Interactive Media           87,114
    6  Ask Network                     74,142
    7  eBay                            72,487
    8  FACEBOOK.COM                    70,278
    9  Wikimedia Foundation
        Sites                          64,739
   10  Amazon Sites                    63,725
   11  Glam Media                      55,821
   12  Apple Inc.                      54,658
   13  CBS Interactive                 51,164
   14  Turner Network                  49,178
   15  Viacom Digital                  47,694
   16  New York Times Digital          47,279
   17  craigslist, inc.                46,089
   18  Weather Channel, The            40,634
   19  Adobe Sites                     34,801
   20  Wal-Mart                        33,667
   21  Verizon Communications
        Corporation                    32,340
   22  Comcast Corporation             32,314
   23  AT&T Interactive
        Network                        31,836
   24  Demand Media                    30,034
   25  Answers.com Sites               29,871
   26  Photobucket.com LLC             28,067
   27  Superpages.com Network          27,914
   28  WordPress                       27,893
   29  Target Corporation              27,431
   30  Bank of America                 26,382
   31  Disney Online                   25,966
   32  Gorilla Nation                  24,717
   33  Expedia Inc                     24,199
   34  Everyday Health                 23,524
   35  AT&T, Inc.                      22,556
   36  United Online, Inc              22,528
   37  iVillage.com: The
        Womens Network                 22,305
   38  JPMorgan Chase Property         21,392
   39  NetShelter Technology Media     20,850
   40  Weatherbug Property             20,635
   41  The Mozilla Organization        20,610
   42  Break Media                     20,536
   43  Gannett Sites                   20,520
   44  ESPN                            20,513
   45  CareerBuilder LLC               20,455
   46  WebMD Health                    20,422
   47  Wells Fargo                     19,431
   48  Real.com Network                19,381
   49  Time Warner -
        Excluding AOL                  19,329
   50  Sony Online                     19,121

   Table 4

   comScore Ad Focus Ranking (U.S.)
   May 2009
   Total U.S. - Home, Work and University Locations
   Unique Visitors (000)
   Source: comScore Media Metrix

                                      Unique
                                     Visitors     %
   Rank    Property                   (000)     Reach

    Total Internet : Total Audience  193,825   100.0
    1  Platform-A**                  176,886      91%
    2  Yahoo! Network**              169,243      87%
    3  Google Ad Network**           163,962      85%
    4  ValueClick Networks**         163,529      84%
    5  Specific Media**              159,216      82%
    6  Yahoo! Sites                  151,262      78%
    7  Google                        150,355      78%
    8  FOX Audience Network**        148,475      77%
    9  24/7 Real Media**             146,713      76%
   10  Microsoft Media Network US**  144,765      75%
   11  Tremor Media - Potential
        Reach                        143,414      74%
   12  Traffic Marketplace**         139,854      72%
   13  Tribal Fusion**               138,108      71%
   14  Casale Media - MediaNet**     135,716      70%
   15  Turn, Inc**                   134,888      70%
   16  interCLICK**                  134,378      69%
   17  YuMe Video Network -
        Potential Reach              134,241      69%
   18  Adconion Media
        Group**                      130,777      67%
   19  Collective Network by
        Collective Media**           128,765      66%
   20  CPX Interactive**             126,032      65%
   21  Platform-A Video
        Network - Potential
        Reach                        125,055      65%
   22  AudienceScience (formerly
        Revenue Science)**           122,566      63%
   23  ADSDAQ by ContextWeb**        122,467      63%
   24  Burst Media**                 117,033      60%
   25  Digital Broadcasting
        Group (DBG) - Potential
        Reach                        112,436      58%
   26  MSN-Windows Live              110,291      57%
   27  AOL Media Network             106,965      55%
   28  BrightRoll Video Network -
        Potential Reach              100,579      52%
   29  AdBrite**                      94,719      49%
   30  YOUTUBE.COM                    88,880      46%
   31  Undertone Networks**           87,648      45%
   32  Pulse 360**                    82,452      43%
   33  Vibrant Media**                80,144      41%
   34  Adify**                        79,288      41%
   35  Centro - Potential Reach       74,479      38%
   36  Ask Network                    74,142      38%
   37  Kontera**                      73,814      38%
   38  NNN Total Newspapers: U.S.     73,395      38%
   39  Monster Career Ad
        Network (CAN)**               72,092      37%
   40  FACEBOOK.COM                   70,278      36%
   41  MYSPACE.COM*                   70,237      36%
   42  ITN Digital - Potential Reach  67,709      35%
   43  MSN.COM Home Page              60,207      31%
   44  IAC Ad Solutions               59,303      31%
   45  TattoMedia**                   58,521      30%
   46  Glam Media                     55,821      29%
   47  EBAY.COM                       55,606      29%
   48  AMAZON.COM                     52,991      27%
   49  NNN Top 25                     50,284      26%
   50  Business.com Network           49,435      26%

   Reach % denotes the percentage of the total Internet population that
   viewed a particular entity at least once in May. For instance, Yahoo!
   Sites was seen by 78 percent of the nearly 194 million Internet users in
   May.

   * Entity has assigned some portion of traffic to other syndicated
     entities.
   ** Denotes an advertising network.

About comScore Media Metrix

comScore Media Metrix provides industry-leading Internet audience measurement services that report details of online media usage, visitor demographics and online buying power for the home, work and university audiences across local U.S. markets and across the globe. comScore Media Metrix reports are used by financial analysts, advertising agencies, publishers and marketers. comScore Media Metrix syndicated ratings are based on industry-sanctioned sampling methodologies.

About comScore

comScore, Inc. /quotes/comstock/15*!scor/quotes/nls/scor (SCOR 12.16, +0.05, +0.41%) is a global leader in measuring the digital world and preferred source of digital marketing intelligence. For more information, please visit www.comscore.com/companyinfo.

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via marketwatch

SANTA BARBARA, CA, June 15, 2009 -- Commission Junction, a division of ValueClick, Inc. (Nasdaq: VCLK) and the leading global provider of affiliate marketing solutions, announced today that for the fourth consecutive year it is the affiliate marketing provider of choice for America's largest retail Web sites

"We provide so many of the top brands in the Internet Retailer Top 500 with best-in-class affiliate marketing solutions that deliver cost-effective incremental revenue because of our mix of technology and expertise," said Kerri Pollard, General Manager of Commission Junction. "The cost-per-acquisition model of affiliate marketing in which retailers pay only for confirmed sales is particularly attractive for merchants looking for guaranteed return on investment."

Of the ten largest online retailers with third-party affiliate marketing programs, Staples, Dell, Apple, Sears, Newegg and Best Buy partner with Commission Junction.

Source: Commission Junction