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"When Nintendo announced last week that it would soon start offering the majority of its retail 3DS and Wii U games as digital downloads, it represented a major change in policy for the company. But buried in the announcement was what could possibly be an even more significant change in Nintendo's relationship with brick and mortar retailers."

Retail sales decline, and a conversation between two industry experts on the medium's prospects

Abstract Berry (1994) and some later papers provide a way to estimate dierentiated product models. When the product of interest is a durable good, consumers do not pay the entire retail price due to the existence of the second hand market. This paper employs data from the US video game market and proposes a new angel to investigate the demand side of a durable good. The results of the empirical investigation suggests that the inclusion of the future resale price makes the model estimation more sensible and reasonable.