Printed from http://www.electronista.com

GameStop takes umbrage to used games block from Sony, MS

updated 08:05 pm EST, Mon February 11, 2013

New technology in next-gen consoles may prohibit used game sale

On the heels of a Sony patent with the potential to block used games, and a report about the next generation Xbox having similar abilities, GameStop claims that such moves would alienate consumers towards the new devices. Citing surveys of its most active customers, the company believes that members of its PowerUp Rewards loyalty program would be less likely to purchase a console that limits trading in of games.

"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 Matt Hodges said in an email to Bloomberg. Hodges declined to provide specifics from the survey.

Over 75 percent of the company's 2012 sales were made by PowerUp members, with members spending five times as much as non-members. Gamestop relies on used sales for nearly half its profit. The company earned 27 percent of its revenue and 46 percent of its profit from used video game sales. The news of the potential block caused a six percent drop in GameStop's stock price, erasing its entire 2012 gain.

"We do not comment on rumors or speculation," Microsoft spokesman David Dennis said in response to a report disclosing the potential for a hardware block on used games. "We are always thinking about what is next for our platform, but we don't have anything further to share at this time."

Piper Jaffray analysts Michael Olson disputes the reports of the Sony patent and the "Durango" Microsoft Xbox iteration prohibiting use of used games. "We are confident that both the new PlayStation and the new Xbox will support used games," Olson wrote.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

  1. andi*pandi

    Moderator

    Joined: 06-19-00

    Used games are part of the culture; also how would any restriction work with game rentals? Loaning to a friend?

    Not cool on so many levels.

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Cat B100

Cat is primarily known for its heavy-duty machinery used in the construction industry and farming, among other areas. What may not be ...

Linksys EA6900 AC Router

As 802.11ac networking begins to makes its way into more and more devices, you may find yourself considering an upgrade for your home ...

D-Link DIR-510L 802.11AC travel router

Having Internet access in hotels and other similar locations used to be a miasma of connectivity issues. If Wi-Fi was available, it wa ...

Sponsor

toggle

Most Commented

 
toggle

Popular News