Here at Game Theory, we’ve already discussed the topic of used games and their effect on the industry several times. But with a recent Penny Arcade cartoon and news post bringing the issue to the forefront of discussion yet again, we felt it was worth exploring some of the misconceptions about the market effects of used game sales.

Wednesday’s Penny Arcade comic refers to the used game market as “a kind of parallel economy.” This implies that the used game market and the new game market operate completely independently of each other, never crossing paths. In reality, the two markets are closely tied. In fact, the mere presence of the used game market can help prop up game prices in the new game market.

(full article)