Both completely valid points of view, and I totally agree with both.
But I'll add that 1) has been eroded already - the invention of activation codes for games/content already means that the content owner has firm control and only allows (x) quantity of activations/etc or reactivation on a certain hardware set.
Now, game companies are not putting all the content on the physical disk, but are forcing game purchasers to download the remainder of the game prior to playing it. All the above eliminates resale value. You can't share a game with a friend .. unless you lend them your entire PC, or your game account details, which has it's own perils.
Emerging markets are growing and will begin dominating the games market. And many of these emerging markets are getting modern technology for basic communications infrastructure, and its faster and more reliable than much of the USA, and most developed countries at that. Much of these emerging markets will NEVER experience physical media. Production costs are high, transport costs are high, and content companies do NOT want the end-user to have any control of the media and will cite environmental concerns & other B$ reasons about making it cheaper for them and hence making it cheaper for the end user to maximize their market & etc/etc.
After physical copies have been completed wiped out, and the honeymoon period is over, content companies will force every user to purchase a new copy of the same content for every device/format. Why sell something to a user once, when you can sell it to the same user multiple times. :iagree:
Given that everyone replaces their equipment every three years (which is how long it takes for a PC/Tablet/Phone to become outdated or broken, a DVD/bluray player to break down), it's practically infinite sales at practically negligible cost!
Heck, why sell it to us when they can just RENT access to it for a given period. If the user is tardy at watching/playing it, they'll have to rent it twice, just to watch/play it once .. AWSOME!! And content companies won't have to deal with those pesky consumer protection laws regarding purchases & services.
Digital delivery is hugely profitable, and hands complete control of content to the producer - of course they're pushing for it.
What we (US/UK/Australia/Europe) want will become less relevant in the market as we're simply dwarfed by Indian population alone, let alone China.
Eventually, games/movies will be off-shored and start targeting native Mandarin/Cantonese &/or Indian speakers and then dubbed to English.
The second hand hand games market is so incomprehensibly irrelevant. It's not profitable, nor large enough to be a concern. It's already been taken care of by DRM and activations anyway
I've stopped buying games. Not because I've outgrown them. I just don't agree with the conditions that are tagged with them ... I'm off to play UT2004 with it's crappy low-key DRM .... single player