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GameStop: Consumers unlikely to buy next-gen console that blocks used games

Specialty retailer says purchase intent would be "significantly diminished" if new platforms prohibited secondhand games.

1136 Comments

Gamers would be unlikely to purchase a next-generation platform that blocks used games or limits other activities, a GameStop representative told Bloomberg.

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"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 vice president of public and investor relations Matt Hodges said.

Hodges' comments come after GameStop shares slid more than 6 percent yesterday following a rumor that Microsoft's Xbox 720 would block used games. This would be potentially problematic for GameStop, which generates a significant portion of its revenue from the sale of secondhand games and goods.

The analyst consensus is that future platforms from both Microsoft and Sony will not block used games. Official word is expected soon, as both companies are rumored to announce their next consoles in the coming months, with the PlayStation 4 possibly coming out of the shadows as early as this month.

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hojo80

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I will buy the new consoles, I will never buy used games because I can't in good conscience give money for a game that doesn't make it to the people that developed/published the game. Used games are a detriment to the industry, we've heard developers complain about lost revenue for years, they aren't making this up.

Even if only a small percentage of used game players buy the game new if the used option is removed, that's revenue they didn't get before.

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nurnberg

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Edited By nurnberg

@hojo80 Do you want to give me 500$? Come on, use your conscience man.

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DannyWolt

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@hojo80 The math isn't that simple:

1. Some players buy new and used. If these players decide not to purchase the next-gen consoles, new game revenue will decrease.

2. Players that do buy new won't be able to recover any money by selling the used game, leading to fewer new purchases by these players.

3. Fewer players experiencing the game will reduce hype and word-of-mouth advertising.

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hojo80

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@DannyWolt @hojo80 If developers are making games for these new consoles and the new consoles don't allow used games to be played people will have to either agree to this and play these new games or don't and not play them. And that's the rational console developers have and presumably are ok with.
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hojo80

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@DannyWolt @hojo80 It's a business decision,, the money spent on a used game doesn't make it to the console maker, publisher or developer. It's understandable from a business standpoint that those three main entities involved the games production absolutely do not care about used game players. A used game played doesn't show up anywhere on their ledger.

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DannyWolt

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@hojo80 Of course. But to say it is guaranteed to make more money for the devs is suspect reasoning at best.

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R2C25

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@hojo80 I buy games I don't rent them. Whenever I buy something I'm the rightful owner. I can do what I please with it like any other merchandise. Tell people not to buy used cars because the makers won't profit from it.

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hojo80

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Edited By hojo80

@R2C25 @hojo80 The car argument doesn't work because that car was bought new with the cost to manufacture THAT SPECIFIC CAR plus the profit they want AND the profit the deal deems necessary.

A game you're paying for something that's not really tangible like a car is, the disk and case cost nearly nothing, the distribution very little. The development cost MILLIONS that they want to recoup and to do that they have to sell X number of games, if a game is bought used. $0.00 of it goes to the companies that paid for the game to be made. THE COST OF THE USED CAR WAS RECOUPED WHEN THE FIRST PERSON BOUGHT IT.

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reincarnator07

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@R2C25 @hojo80 Thing is, you don't buy the game. You buy a license to use the software.

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reincarnator07

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Edited By reincarnator07

@R2C25 @reincarnator07 @hojo80 You agreed to it by using the product. Personally, I have no problem with blocking used games. I'm a PC gamer, we've not had used games in ages. We just get awesome sales. It also gives back more money to the devs.

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R2C25

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@reincarnator07 @R2C25 @hojo80 "I didn't know I couldn't do that"- Dave Chapelle. I didn't sign anything,I didn't agree with anybody. Movies are the same thing do you think that applies to them? Publishers are pulling this out of their black hole a** and you're swallowing it.

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reincarnator07

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@R2C25 @reincarnator07 @hojo80 Looking at the bottom of dynasty warriors gundam 3, it explicitly says "RESALE AND RENTAL ARE PROHIBITED UNLESS EXPRESSLY AUTHORIZED BY SCEE"

Also, check this site. http://uk.playstation.com/legal/detail/item304210/Application-Terms-of-Use/

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R2C25

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@reincarnator07 @R2C25 @hojo80 Show me where it says that on the game case and on the receipt...

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Max_160

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@hojo80 good luck collecting games. i sell games the same month i buy them, that way i can try everything, but now you'll have to pile on game that will be collecting dust, as well as throw away 60 if not 70 bucks each time. used games were always part of gaming and giving some rights and flexibility to the owner. gaming companies already rip so much people of with locked content, overpriced games, and dlcs, that they money they lose in used games are compensated 3 times the amount. so please, if you going to give more totalitarian power to the product manufacturers, think about how far it can go in the future, where we might be charged monthly for keeping a game.

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hojo80

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@Max_160 @hojo80 I own around 200 games on Xbox 360 and PS3, some bought day 1, some bought years later at a lower cost but always bought new.

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reincarnator07

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Edited By reincarnator07

@Max_160 @hojo80 Perhaps people should just stop buying so many games then if they are so unhappy with business practices. You can't have your cake and eat it too.

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TreFacTor

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Edited By TreFacTor

@hojo80 Companies have found a way around that buy requiring a pass code from new games for the online component. Single player games could do the same buy offering exclusive dlc or extra content to new game purchases...it's time to stop crying a river and realize that not everyone can buy new. It's fine for those that can and we will never see I 2 I on the situation but the fact remains that if I need a car, I buy it used. The only people benefiting from the resale of that or any product (that can't be put into digital form) is that of the seller and new recipient. Prove that statement wrong and you have my silence.


I buy new for the games that I know will be good, and the rest are not a day one purchase. It's the only way some people can try new gaming experiences. I would never have bought Forza but I got one used and it convinced me to get Horizon new. That in and of itself is a benefit to the developer. Gamestop is like the word of mouth friend of the industry and they should remain and not be vilified.

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hojo80

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There are inherent downsides to this new model, I agree and it won't benefit used gamers.

BUT I was merely expressing my viewpoint on my purchasing habits with games and offering a justification for implementing such a feature from a business standpoint as a console developer who's majority of games developed for their system is by publishers that dislike used game sales. It would make sense the consoles try and appease publishers and developers since those new game sales come with a licensing fee that goes to the console maker.

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Darnasian

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Edited By Darnasian

@hojo80 Somebody with a brain and conscience at fucking last!

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RedLegZeff

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@Darnasian @hojo80 I can't buy used games because I don't like the idea of some creepy weirdo "touching" my game.

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R2C25

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Edited By R2C25

@RedLegZeff @Darnasian @hojo80 ????

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xipetotecetriga

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Require Internet connection is annoying, but I'm okay with.

Prohibit used games? Forget it, not touching it.

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rawsavon

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@xipetotecetriga

I actually think the opposite way...at least for many consumers.
Requiring a constant internet connection (or a connection at all) it still not a realistic requirement for US consumers...let alone around the world.


There are users here that still have to use dial-up. Plus there are many Americans that do not have home internet access. This does not even factor in the global population.


It MIGHT be feasible for the gen. after this coming one...but even then...


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xipetotecetriga

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Edited By xipetotecetriga

@rawsavon
@xipetotecetriga Well I kinda hate the constant internet thing too. I'm not even really an online player at all! I play mostly solo games. So it does piss me off... but not as much as being locked into a game.

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Vengentz

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Edited By Vengentz

While I don't bother with second hand games myself. I wonder if such a move might lower game prices.

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RossRichard

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Edited By RossRichard

@Vengentz If anything, it would make games more expensive. You are giving them a monopoly and a path to fix prices, why lower prices?

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Vengentz

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@RossRichard I don't see it that way. A good example would be steam. Will a 100% assurance that money on a purchase going to a games developers, they have offered deep cuts.


Yes they are usually on sales but the fact that the publisher will make money on EACH sale might be a motivator to sell volume at a lower cost.

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Vengentz

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Edited By Vengentz

@RossRichard @Vengentz As long as you ignore the fact that the companies who make the games see $0 in either case, they are not related in any form.

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Vengentz

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Edited By Vengentz

@RossRichard @Vengentz As long as you ignore the fact that the companies who make the games see $0 in either case, they are not related in any form.

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RossRichard

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@Vengentz @RossRichard Steam and console gaming really can't be compared. PC is plagued by piracy, and developers sign with steam to combat it.

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Darnasian

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@RossRichard @Vengentz I wonder how are people getting this idea? While it's true that used games would drive away customers that do not give them any profit , it won't higher game sales because they want to keep that hardcore audience at least. If anything , prices will stay the same.

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reincarnator07

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Edited By reincarnator07

@RossRichard @RedLegZeff Then people won't buy the products. We do have the option NOT to buy games if we dislike them or disagree with the business practices of the developer/publisher.

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RossRichard

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@RedLegZeff @RossRichard Not so at all. All that has to happen is that Sony and MS get in a back boardroom meeting agreeing to increase console prices by $10/$20. Happened in the SNES/Genesis era, it will happen in the future.

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RedLegZeff

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Edited By RedLegZeff

@RossRichard @RedLegZeff Which is harder when there are a dozen different companies as opposed to 2.

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RossRichard

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@RedLegZeff @RossRichard Notice I mentioned price fixing. Kind of like what ATI and Nvidia got in a lot of trouble for doing a decade ago.

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RedLegZeff

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@RossRichard Competition between companies. You can't sell one for 100 bucks if your competitor will sell for 60.

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RossRichard

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Edited By RossRichard

@Darnasian @RossRichard @Vengentz Just think about it. Let's say we both make parts for the auto industry, and they are parts that are in high demand. We are the only ones who can make these parts in the whole world. Let's say I do some really crooked business, and get you put out of business. I am now the only one that makes these parts. What is my motivation for keeping my prices low?

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AgentRaven77

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I think this will put GameStop out of busness for good

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Vengentz

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@AgentRaven77 I wouldn't say for good. But their profit margins will drop off. How much do they make when you buy a used game at $55 as opposed to a new title at $60.

I mean what do they give at trade in, $30 credit, more often then not less.

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Grimcicle

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Edited By Grimcicle

@Vengentz @AgentRaven77 They make about $9 on new game sales. Used games? Well, that depends on what they pay for it. But their profit on a used game has to be at least 75%.

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Gamer_4_Fun

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I know I won't even wanna go near it

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