The games industry in terms of distribution needs a serious kick up the arse as the pre owned market is killing developers.

Not necessarily. If a game becomes locked to a console or computer then its second hand value becomes zero, and then the buyers will be come exceptionally selective for new games. If they cannot sell on the game, then the price of new games will have to come down, in order to off set the zero resale value that would have enabled the games to recoup some of the cost. While that may encourage some more sales it may discourage others.

A market for pre owned games gives buyers an opportunity to pass on the game if they have completed it or it is not of their liking. It also discourages piracy. If you can get a legit copy cheaply then why get a pirate copy of download?

if they received a steadier revenue stream they could reduce the cost of games to the consumer.

Its only one example - and maybe an extreme one - but CODMW2 generated millions in sales revenue. Despite this and the fact it was one of the most anticipated games in years the RRP something daft like £50.

I'd bet my right bollock that if the 2nd hand market disappeared overnight then games would still cost the same.

Don't think that the £50 RRP is anything new. PS1 and N64 games did cost this much once upon a time. Banjo Kazooie on the N64 was RRP £49.99

I know few people who buy pre-owned games I have to say, mostly cos there's so little of a price difference in stores. I personally buy loads of pre-owned games off eBay for about a quarter of the RRP, though it's often months (sometimes years) after release

Game is a big pile of crap, their prices for new AND second hand are a disgrace. Plus considering how much profit they make from second hand games....which must be vast....they still don't drop the prices to "reasonable". Compare this to the DVD market. After a few months on sale, the price usually drops to less than a tenner. Yet I still see games like COD4 for the PS3 selling at £40 brand new, £38 second hand!

As for Asda and Tesco, no surprises there. They use the more profitable side of the business to subsidise the new ventures; phones, insurance, games etc. Then once their competitors are weakened they can level with the rest of the market.

Yes but Game operate from small retail premises on the high street which are hardly cheap and the rents on them are probably very high. That pushes their needs for really high margins simply to cover the rent. If government had not pushed up property prices through low taxation the prices in the stores would probably be much more competitive.