GameStop CEO Says Next Xbox Won't Block Used Games

Andy Chalk

One Flag, One Fleet, One Cat
Nov 12, 2002
45,698
0
0
GameStop CEO Says Next Xbox Won't Block Used Games


The CEO of GameStop predicts that Microsoft's next console won't block used game sales because the preowned market is too important to the health of the industry.

The rumor went up in January that Microsoft's next game console will feature some sort of "anti-used game" technology [http://www.escapistmagazine.com/news/view/115490-Rumor-Next-Xbox-Will-Feature-Blu-ray-Anti-Used-Games-System] to help combat the grievous losses suffered by the videogame industry at the hands of people who like to help finance the purchase of new games by trading in their old ones. It struck me as kind of a crazy idea and it turns out that I'm not alone in that feeling, although GameStop CEO Paul Raines phrased it a little more gently, telling investors that it's "unlikely" to happen.

Implying that he's already spoken to Microsoft on the matter, he said that Microsoft and Sony both "have great relationships with us" and noted that used games sales "have a residual value."

"Remember that GameStop generates $1.2 billion of trade credits around the world with our used game model," he said. "So, consider taking used games out of that, you'd have to find new ways to sell the games."

Cowan & Company analyst Doug Creutz echoed Raines' position, dismissing [http://www.develop-online.net/news/40295/Analyst-Xbox-720-could-launch-fall-2013] suggestions that the new Xbox could be a disc-free console. "We believe a digital-only next-gen Xbox is unlikely given risks to both Microsoft's market share and the gaming ecosystem as a whole from any attempt to kill used games," he wrote in a research note. "However, we do believe that Microsoft may be targeting a cheaper physical solution in an effort to get the initial price of the box down and speed up new console adoption, which would be bullish for software publishers."

Source: Develop [http://www.develop-online.net/news/40297/Next-Xbox-wont-block-used-games-says-retail-boss]


Permalink
 

Something Amyss

Aswyng and Amyss
Dec 3, 2008
24,760
0
0
To be fair, Gamestop telling investors not to worry is pretty much required. Would you tell your company anything to the contrary, even if you believed it?

"The new XBox will include anti-used game protection, and we're all screwed, so sell your stock now."

Anyway, I thought this was crap, as it was when the PS3 was going to do it, and all the other nonsense rumours. Just saying, in context, this was what they had to say one way or the other.
 

Andy Chalk

One Flag, One Fleet, One Cat
Nov 12, 2002
45,698
0
0
You're the CEO of GameStop.

You're not the one actually MAKING it!

Why the fuck should we care what you have to say about it?
Andy Chalk said:
The rumor went up in January that Microsoft's next game console will feature some sort of "anti-used game" technology [http://www.escapistmagazine.com/news/view/115490-Rumor-Next-Xbox-Will-Feature-Blu-ray-Anti-Used-Games-System] to help combat the grievous losses suffered by the videogame industry at the hands of people who like to help finance the purchase of new games by trading in their old ones. It struck me as kind of a crazy idea and it turns out that I'm not alone in that feeling
A corporation using underhanded methods to obstruct a perceived threat to their profit margin sounds crazy to you?http://thegamingliberty.com/wp-content/uploads/implied-facepalm.jpg
Prime Minister Mohammad Mosaddegh and Central America would like a word with you.
 

viranimus

Thread killer
Nov 20, 2009
4,952
0
0
DVS BSTrD said:
You're the CEO of GameStop.

You're not the one actually MAKING it!

Why the fuck should we care what you say about it?
Yes, a whole hell of a lot of ^this^

Seriously? why even bother saying it if its nothing more than a perdiction based on speculation.
 

Frostbite3789

New member
Jul 12, 2010
1,778
0
0
In other completely unrelated news, the CEO of GameStop was seen shitting his pants and sweating profusely.
 

Mouse_Crouse

New member
Apr 28, 2010
491
0
0
As much as I do love my digital games. Trying to kill the used market with a 'no-used game' console would be a bad idea in my opinion. The courts (in the US and many others) have upheld the consumers right to do with their product what they please, including selling the used copies and transferring their license along with it. Project 10 dollar and the like is a terrible system and I hope it dies off. You don't see the same complaining from the book sellers, music stores, and car dealerships. They know it's an important function in their business and it needs to stay around. Those industries have been around for much longer and they haven't died off because of used sales. The video game industry needs to adapt, not try to crush consumer rights.
 

VonKlaw

New member
Jan 30, 2012
386
0
0
I too think that Microsoft won't have an anti-used game system in its next console, do I get an article written about me, since both me and Mr.Gamestop CEO don't have a fucking clue what Microsoft will actually do since...ye know, we don't work in their development department?
 

RaikuFA

New member
Jun 12, 2009
4,371
0
0
DVS BSTrD said:
You're the CEO of GameStop.

You're not the one actually MAKING it!

Why the fuck should we care what you have to say about it?
Cause Gamestop can refuse to stock it and the games for it. That'd put a huge dent in Microsofts sales.
 

Andy Chalk

One Flag, One Fleet, One Cat
Nov 12, 2002
45,698
0
0
RaikuFA said:
DVS BSTrD said:
You're the CEO of GameStop.

You're not the one actually MAKING it!

Why the fuck should we care what you have to say about it?
Cause Gamestop can refuse to stock it and the games for it. That'd put a huge dent in Microsofts sales.
So of course, IF the new X-box actually DID include "anti-used game" tech, they'd be SURE to tell GameStop wouldn't they?
 

Albino Boo

New member
Jun 14, 2010
4,667
0
0
Mouse_Crouse said:
As much as I do love my digital games. Trying to kill the used market with a 'no-used game' console would be a bad idea in my opinion. The courts (in the US and many others) have upheld the consumers right to do with their product what they please, including selling the used copies and transferring their license along with it. Project 10 dollar and the like is a terrible system and I hope it dies off. You don't see the same complaining from the book sellers, music stores, and car dealerships. They know it's an important function in their business and it needs to stay around. Those industries have been around for much longer and they haven't died off because of used sales. The video game industry needs to adapt, not try to crush consumer rights.
How many highstreet book stores or music retailers buy back the products they sell? The car market is different in so far as the biggest deprecation in value of a car comes from when you buy it, you are literally losing 1000s in value when you drive it off the forecourt. The residual value in books is very low the only way to make a profit out of the average used book is to buy at round 98% less of the original price. Used CDs and DVDs have less deprecation but its still huge, making the buy back from the vendor uneconomic. Only used games have minimal deprecation over the first 6 months ie the used game is worth 95% of its retail price. So the other retail models have been around longer but have much higher deprecation than the games and thus cannot be used as model.


As to you statement about legal rights, I will direct you attention at steam. If the rights are as you stated, how come steam is a massive multi billion dollar retail system then? If its legal on PC why is going to be illegal on a console?
 

Oirish_Martin

New member
Nov 21, 2007
142
0
0
It is sensible.

Either Microsoft lets the online market diversify, or permits resale of physical media, or their sales are going to fall. Their current pricing monopoly for digital sales is ridiculous.
 

RaikuFA

New member
Jun 12, 2009
4,371
0
0
DVS BSTrD said:
RaikuFA said:
DVS BSTrD said:
You're the CEO of GameStop.

You're not the one actually MAKING it!

Why the fuck should we care what you have to say about it?
Cause Gamestop can refuse to stock it and the games for it. That'd put a huge dent in Microsofts sales.
So of course, IF the new X-box actually DID include "anti-used game" tech, they'd be SURE to tell GameStop wouldn't they?
They'd find out sooner or later, but you are right about that last part.
 

Andy Chalk

One Flag, One Fleet, One Cat
Nov 12, 2002
45,698
0
0
VonKlaw said:
Do I get an article written about me, since both me and Mr.Gamestop CEO don't have a fucking clue what Microsoft will actually do since...ye know, we don't work in their development department?
Depends. Are you the CEO of a multi-billion-dollar international corporation that specializes in selling videogame consoles and support hardware and thus have a well-established working relationship with Microsoft, Sony and Nintendo?

Because if not, the answer is no. Sorry.
 

Andy Chalk

One Flag, One Fleet, One Cat
Nov 12, 2002
45,698
0
0
This just in:

Your the CEO of gamestop. Not the designer or developer of the next Xbox. Stop talking.

Plus I remember seeing an article saying used games are what actually ruin single player games...I likes those asshole. I HATE YOU!!!
 

Woodsey

New member
Aug 9, 2009
14,553
0
0
Duh. I will eat my own face if they actually (completely) block used games being playable. And then you'll have seen everything.

DVS BSTrD said:
RaikuFA said:
DVS BSTrD said:
You're the CEO of GameStop.

You're not the one actually MAKING it!

Why the fuck should we care what you have to say about it?
Cause Gamestop can refuse to stock it and the games for it. That'd put a huge dent in Microsofts sales.
So of course, IF the new X-box actually DID include "anti-used game" tech, they'd be SURE to tell GameStop wouldn't they?
You're absolutely right: GameStop would sell the consoles for years, completely oblivious to it's limiting functionality. There is absolutely no way they'd be able to find out about it blocking used games from being played unless MS told them.
 

SonOfVoorhees

New member
Aug 3, 2011
3,509
0
0
If consoles became digital download only then i just won't bother buying it. I buy few new games as most games are not worth buying new. The rest of this year the only games im looking forward to is AC3 and Prototype 2. A lot of games only last 8 hours....not worth £40 and i have zero interest in online gaming. Some of those are worth renting for £5 from Blockbusters.

I think digital download only will destroy the games business more than used gaming because alot of people buy new knowing they can resell it to buy there next game. If they cant resell it then it will make them more choosy about which games they buy full price.
 

Andy Chalk

One Flag, One Fleet, One Cat
Nov 12, 2002
45,698
0
0
Woodsey said:
Duh. I will eat my own face if they actually (completely) block used games being playable. And then you'll have seen everything.

DVS BSTrD said:
RaikuFA said:
DVS BSTrD said:
You're the CEO of GameStop.

You're not the one actually MAKING it!

Why the fuck should we care what you have to say about it?
Cause Gamestop can refuse to stock it and the games for it. That'd put a huge dent in Microsofts sales.
So of course, IF the new X-box actually DID include "anti-used game" tech, they'd be SURE to tell GameStop wouldn't they?
You're absolutely right: GameStop would sell the consoles for years, completely oblivious to it's limiting functionality. There is absolutely no way they'd be able to find out about it blocking used games from being played unless MS told them.
They'll keep selling the consoles for years because people will still be BUYING them for years, weather they play used games or not.
Never underestimate the power of commercialism:
<youtube=EaHUpWuqNHY>
 

FoolKiller

New member
Feb 8, 2008
2,409
0
0
albino boo said:
Only used games have minimal deprecation over the first 6 months ie the used game is worth 95% of its retail price. So the other retail models have been around longer but have much higher deprecation than the games and thus cannot be used as model.
Where are you getting this data from?

Maybe some of the AAA titles aren't depreciating all that much but the rest are. Fallout: New Vegas was 50% less than launch at 6 months, and that was arguably one of the better titles. Mass Effect 2 dropped like a rock in a similar time frame. And I've seen games that lose 70% in two weeks because no one buys it. And this is the new game's price.

We're talking about the amount you get for a game when you trade it in used because that is where the depreciation lies. Yes, a car loses thousands in value when you drive it off the lot but games lose a lot too. I have seen at most $40 dollars being paid (as trade-in never as cash) for a $60 game. Most of the time I see a new-release game within a week only getting $30 to $35 in trade-in because the early adopters got bored and decided not to keep the game around. Nowhere do I see $57 dollars being paid for a game that is $60 brand new.
 

FoolKiller

New member
Feb 8, 2008
2,409
0
0
SonOfVoorhees said:
I think digital download only will destroy the games business more than used gaming because alot of people buy new knowing they can resell it to buy there next game. If they cant resell it then it will make them more choosy about which games they buy full price.
Finally. Someone else who gets this. All I would do is be sure I want a game forever before buying. And I would wait for a year and then look for bargains. And I would have had to play at a friend's house first (I don't trust demos since they themselves say its not representative of the final product).
 

mad825

New member
Mar 28, 2010
3,379
0
0
Eh, I don't think MS really cares all that too much to be fairly honest. What's next? piracy related programs block on the next windows OS?