In doing some research on my last article about digital reselling, I found this article talking about Robot Cache, a new storefront coming out in roundabout competition with Steam and Epic. The primary selling point of this store is… reselling. Specifically, you can resell digital games you purchase and get 25% of the cost back.
The gist of Robot Cache is that it’s a new store that uses a blockchain certificate as a form of DRM. That certificate allows the store to track individual copies of a game so they can be resold. The price is the same as a new copy—you’re really just selling a license to a digital good, so it’s never really “used”—and you get a 25 percent cut put on your credit card, while the publisher gets 70 percent and the store takes 5 percent.
“Used” copies up for sale are put into a queue alongside brand new ones and the sales alternate between new and used copies, so on some sales publishers will get 95%, and on others 70%, as long as there are players selling their games back. Crucially, Jacobson says, you can’t sell a game back in the first 90 days after release, when publishers make the most money.
The “used game sold at retail price” thing kind of threw me for a loop at first, but… no, actually, I’m still looped. I understand the concept that used goods are generally cheaper to account for diminished value, which is not entirely relevant with a digital game. I can also appreciate the obfuscation going on insofar as you never really buy explicitly “used” games on this new store, as the keys will be mixed together with new ones.
But it’s difficult to grok how all this works in practice. Is the resell basically guaranteed then? Or will it sit in a queue until enough licenses have been sold/resold? Are there mechanisms in place for banning users instead of revoking licenses? What happens when you go to resell and there’s a sale on the base game? Hell, that 90-day stipulation all but guarantees that the base game will be at a lower MSRP by the time you’d be eligible to sell your own copy.
What I do enjoy though, is the candor:
While Jacobson said Robot Cache’s goal isn’t to compete with Epic or Steam, it’s notably not a reseller like Humble or GreenmanGaming, selling Steam keys at reduced prices. To some extent it has to compete, because its games will be sold elsewhere, too, sometimes with superior features like the Steam Workshop’s mod support. But it does seem like out of the gate, Robot Cache will actually be more fully featured than Epic’s store with an SDK meant to replicate most of Steamworks’ major features, from multiplayer to chat to cloud saves.
I do not expect Robot Cache to succeed as a storefront. But I am hopeful that it will be enough of an agitator to possibly move the needle on digital resells in some small way.
Gotta love this news headline: GameStop’s stock in free fall ‘as business burns to the ground‘.
Couldn’t happen to a better company, am I right?
Still, I am a touch concerned. As the article notes, GameStop revenue is down as more and more gamers rely on digital purchases and streaming services than physical games. It’s been more than five years since I bought an actual physical game, myself. But it is vitally important to me that physical gaming continues to exist because otherwise we consumers lose the ability to resell our games.
While there have been attempts to make inroads in digital resell, the lack of recent headlines leads me to believe things have stalled. The most recent article I could find was from last year, wherein a new storefront (sigh) was going to be launched that could allow digital resell based on blockchain technology. Except, you know, the consumer’s own cut was going to be only 25%.
Which kinda makes GameStop look downright charitable in comparison, yeah?
In any case, if GameStop goes away, I am not entirely certain what fills the gap. There are a few off-market used game stores in my area, but none of them have any particular web presence or meaningful sales. Perhaps we will see more eBay storefronts open up, but where are they sourcing the games? My fear is that once GameStop goes under, there won’t be a big enough lobbying voice to dissuade game makers from pushing an all-digital future and thereby removing one of the last bastions of gaming Consumer Surplus.