GameStop Warns Against Anti-Used Game Technology

[Andy Chalk]

GameStop Warns Against Anti-Used Game Technology

GameStop says sales of the next Xbox will be "significantly diminished" if reports that it blocks access to used games turn out to be true.

Rumors that Microsoft's next Xbox console will employ technology that prevents the use of preowned games have been kicking around for awhile now and came up again yesterday [http://www.escapistmagazine.com/news/view/121938-Rumor-Next-Xbox-Will-Require-Constant-Internet-Connection] in a report claiming that the system will require an always-on internet connection and use activation codes restricting games to the original user only. That's bad news for GameStop, which relies on preowned game sales for nearly half its profit, but GameStop today warned that it will also prove to be bad for Microsoft.

"We know the desire to purchase a next-generation console would be significantly diminished if new consoles were to prohibit playing pre-owned games, limit portability or not play new physical games," GameStop rep Matt Hodges told Bloomberg, citing information based on surveys taken by members of the PowerUps Rewards program. Roughly 75 percent of GameStop's U.S. sales in 2012 went to PowerUp Rewards members, according to the company, and they spend five times as much as non-members.

GameStop's share price took a tumble following yesterday's report but has since begun to regain ground, and several analysts quickly spoke up to express doubt that Microsoft would take steps to kill used game sales. "It's highly unlikely," Colin Sebastian told GamesBeat. "They may have the capability to prevent resales, but Microsoft needs retail support to sell hardware, and many of their core gamer customers trade a lot of games."

He also pointed out that neither Microsoft nor Sony are likely to commit to a strategy against preowned games without knowing that the other is going to do it as well. "If one platform [blocks used games] and the other does not, then a huge competitive advantage goes to the platform that allows trade-ins," he added.

Microsoft has refused to confirm or deny the rumor, telling OXM, "We are always thinking about what is next for our platform, but we don't have anything further to share at this time."

Sources: OXM [http://www.bloomberg.com/news/2013-02-07/gamestop-members-may-snub-next-gen-console-restrictions.html]



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[Blindrooster]

Ive always been an avid xbox owner, and never owned a play station in my life. If this is what Microsoft does with the next xbox, sony, here I come......

 

[Eric the Orange]

While I agree with what your saying GameStop, your not the best source for this advice. I mean your about as biased as it you can get to this topic. What I'm saying is this would have more impact if delivered from a neutral 3rd party.

 

[zerragonoss]

I agree that is highly unlikely that Microsoft will prevent used games entirely a system that detects could just as easily say this game is used give us x$ dollars to activate which seems much more their style.

 

[Adam Jensen_v1legacy]

They are biased, but they are also correct. People will simply wait for price drops or switch to PC. Less hassle, and Steam deals are awesome. No one wants to buy a game for $60 and not be able to sell it later when they get bored with it. Not to mention that Microsoft also charges people for online play. Video game market is largely unregulated. This kind of business practice should be illegal.

 

[WanderingFool]

Somehow, I have the feeling that if one console has the lockout feature that prevents used games, the other console will likely have it also, whether or not it was originally included will be the only question.

Also, seeing as this is Gamestop talking... I find myself not giving a shit...

 

[Little Gray]

While I agree with what your saying GameStop, your not the best source for this advice. I mean your about as biased as it you can get to this topic. What I'm saying is this would have more impact if delivered from a neutral 3rd party.

Except that its GameStop that has all of the evidence. They have a good idea on how many people trade in games towards new purchases since they are the ones getting them. They might be biased but that doesnt matter when they have actual hard evidence to back up what they are saying.

 

[SonOfVoorhees]

If MS does this, then couldnt Gamestop just not sell Xbox/games......after all if they dont make much from selling the hardware and new games then why would they bother stocking them? but as i say, i doubt MS will, maybe when consoles go digital only but then hopefully games will be cheaper and thus the used game market wont matter. Look at steam, there deals are awesome, got Deus Ex Human Revolution for £3.50, that cheaper than rental and at that price who cares about used.

 

[KeyMaster45]

Ehh, all the games I want to play come out on steam nowadays anyway. I don't think I've touched my consoles in almost 3 years, so frankly I don't see a reason for me to buy the next gen. If anything I think that's what Sony and Microsoft should be scared of happening, not used game sales.

 

[Twilight_guy]

I understand why Gamestop made this comment, they need to try and drum up support for their business but I don't know who would listen. They have an obvious vested interest and one were there support is mandate to be were it is. It's like asking Microsoft if everyone should purchase Windows or Mac OS X.

 

[Pyrian]

They are biased, but they are also correct. People will simply wait for price drops or switch to PC. Less hassle, and Steam deals are awesome.

but as i say, i doubt MS will, maybe when consoles go digital only but then hopefully games will be cheaper and thus the used game market wont matter. Look at steam...at that price who cares about used.

Ehh, all the games I want to play come out on steam nowadays anyway. ... If anything I think that's what Sony and Microsoft should be scared of happening, not used game sales.

Uh, guys? I love Steam, too, but it's pretty much the poster child for buying games new and being unable to resell them. If MS/Xbox wants to chase Steam's coattails, no-used-sales no-game-stop all-digital-distribution consoles make good sense.

The remaining brick-and-mortar digital product stores are all staring into the abyss which Tower Records, etc., long since fell into. They're dinosaurs.

 

[Andy Shandy]

They're right, but the fact that this is coming for a company that is a big reason behind why Microsoft and Sony would be considering this leaves a bit of a bitter taste. Why not work something out with the publishers to do with the used sales, because at the moment (if the rumours would be true, that is) it would be a lose-lose situation, it would just be who loses more.

 

[FoolKiller]

And there is still the fact that the terms of service we agree to allows them to change functionality after the fact. One day they could just go *click* and turn off used game playability. Sony already pulled this bullshit with PS2 games, and for what, to be able to sell them online.

 

[KeyMaster45]

Uh, guys? I love Steam, too, but it's pretty much the poster child for buying games new and being unable to resell them. If MS/Xbox wants to chase Steam's coattails, no-used-sales no-game-stop all-digital-distribution consoles make good sense.

I'm aware that I can't get rid of my games on steam, but then I don't resell my games anyway. If Microsoft is looking to ride Steam's coattails then a console using its business model is not the way to go. They would, quite honestly I think, have better luck taking on the role of publisher only, doing away with the console all together, and just selling their products through services like Steam. Much like your remark of brick and mortar stores being on their way out (and few would argue they aren't) the proprietary console wars are antiquated as well.

The point that I was personally making though was that with this next generation Microsoft and Sony should be afraid of the people who normally would buy their consoles, not buying them because they no longer have a need for them thanks to services like Steam. For sure I know that I most likely won't be dropping money on the next gen because Steam meets my needs, and I know that I am not the only one which that is true for.

Frankly my worst nightmare would be to see the console wars simply morph into the digital distribution wars.

 

[Sidmen]

Why does everyone latch onto the "Used Games" part of these stories while ignoring the absolutely atrocious part. You must always be online to use the console.

Maybe I'm the only one that lives in the dark ages, but the internet is a very expensive thing (especially at the speeds they'll require)and until recently I didn't even have access to high-speed at all. If any console requires that I be online to play my games - whether or not they allow used game sales - I simply won't be able to justify purchasing the console nor the games. I don't know when I'll be forced to cancel my internet subscription and I don't know when I'll have to move down the street where there isn't cable access...

 

[Steven Bogos]

In other news: Oil barons in the middle east warn against sustainable energy

 

[newwiseman]

There has already been precedent made for forcing steam to allow games that are bought to be resold, if MS did this they would probably get sued, granted legal shenanigans can be made with the launch of a new service... I still think they would lose to anti-consumer practices and first sale doctrine..

I could see MS trying for some sort of project 10 dollar scheme... regardless of the facts, I won't be purchasing a new console when they come out, my PC will always be better.

Captch*
pod bay doors
-never mind the doors man the torpedoes.

 

[GAunderrated]

I almost hope Microsoft does this so it crashes and burns, sending a nice wakeup call to the other publishers/developers how bad this idea would be.