Well, if I'm interpreting the chart correctly it's saying that a game with release date of 2000 has a "price unit" of 1.0 on 02/07/07, but by 6/27/07 it's .75 of 1.0. Which makes sense--their price unit of 1.0, which could be anywhere between 5$ and 30$ is not the same as that of a game released in 06, which is probably 30-45$. So the game that was released in 2000 has already seen its major price drop.
"Games released in 2006 depreciated an average of 32% from their release date until February 1st, going from $42.08 to $28.66 in three months (not shown on graph). And then drop another 38% in the following five months from February until July 1st, going from $28.66 down to $17.70. The average video game released in 2004, 2002, and 2000 only dropped 20% during this same time frame going from an average of $9.61 to $7.70.
By the second, fourth, and sixth year after a game's release, the prices follow almost the exact same pattern in their price depreciation. "
Basically he's saying games lose a large portion of their "value" in the first 8 months, then they continue to drop, but much slower. The longer you wait, the less you'll pay (generally speaking) but the 'sweet spot' is probably 8 months after release.
And isn't this the case with most technology, though the scale may shift a little bit--dvd players, dvds, cars, computers, they probably all have a pretty regular depreciation curve with only a few rare but attention-getting outliers.
Still, it is nice to quantify it, and to have a figure to think about (8 months).
