Introduction
The gaming community, an expansive realm encompassing diverse individuals passionate about video games, engages for varied reasons. Some revel in gameplay, others in collecting, and a select few view video games as investments. While I don't prophesize a cataclysmic burst affecting the global economy, enthusiasts of retro games are witnessing inflated prices on consoles as recent as the PS3 and Xbox 360. In this exploration, we delve into the factors shaping a game's price and value and ponder if 2020 marks the inception of a downturn.
Deciphering Game Price and Value
The Essence of Value
Value in video game collecting emanates primarily from two sources. Firstly, a game accrues value by being exceptional. The quality of the player's experience significantly influences its value as it ages. Take, for instance, Nintendo 64's Super Mario 64, maintaining a minimum of $40 on eBay due to its revered status as one of the best video games of all time. The sustained value stems from its enduring appeal.
The Impact of Condition
Secondly, games gain value through their condition. As games age, wear and tear are expected, making pristine copies rarer and more valuable. An Atari cartridge in mint condition commands a higher price, not necessarily because it's a great game, but due to its scarcity in such condition.
Divergence of Expensive and Valuable Games
The Paradox of Expensive Games
Contrary to the belief that expensive games must be exemplary, the reality is different. Annual releases, like sports titles such as Madden, flood second-hand stores as newer versions supersede their predecessors, causing a depreciation in value. Yet, a lesser-known title like NCAA College Basketball 2K3 for the GameCube becomes a gem due to its scarcity, attaining a resale value of around $500.
Rarity and Circulation
A pivotal reason behind some games' exorbitant prices is their limited circulation. Games from consoles with lower market shares, like the PSP, OG Xbox, or DreamCast, can command higher prices due to their rarity.
The Digital Age Dilemma
Digital Transformation
As the digital era ascends, presenting games as investments encounters a potential challenge. Digital versions of games, though more accessible and often cheaper, threaten the value of physical copies. Emulators, while legally dubious, further erode the perceived exclusivity of physical copies, challenging the traditional notion of ownership.
The Looming Threat
The rise of digital gaming poses a substantial threat to the resale market of valuable titles. While hardcore collectors may staunchly uphold the value of physical copies, the majority of gamers, enticed by the convenience of digital platforms, may opt for this route. This transition has the potential to diminish the resale market significantly.
Future Perspectives
The Outlook
The resilience of video game collecting persists despite the digital surge. With the PS5 and Xbox Series X promising backward compatibility, digital copies of older games may infiltrate new generations of gamers, altering the dynamics of the resale market. While hardcore collectors endure, the shift towards digital platforms could exert a palpable impact on the industry.
In conclusion, the landscape of video games as investments undergoes a transformative phase, grappling with the dichotomy between digital convenience and the traditional allure of physical copies. As we navigate these shifts, the future holds intriguing possibilities for both collectors and gamers alike.
