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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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MirkoS77

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Of course Gamestop would say such a thing.

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silentcell

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They would never block used games at launch. That would come with a FW update later on if anything.

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Ablaoublas2

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To everyone defending the game companies and this new kind of console we hope will never arrive:Would you also consent to your dvd movies/blueray and books having the same measure?Not being able to resell them i mean?Cause its the same thing really.Why should games be any different?

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hackerrei

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Edited By hackerrei

Most people have more than one dvd/blueray player so that would not work so it is not a factor. Most gamers have 1 system and 1 account so it would work for games. the difference is movies make all there money in the box office and a little from home sale. Games make all there money from home sale thats why.

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bledsoe45sbc

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@Ablaoublas2 if it stopped piracy and hollywood could go back to making good movies again , hell ya i'd give up being able to sell my dvd's/br's

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Ablaoublas2

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@bledsoe45sbc @Ablaoublas2 You think its because of piracy that hollywood is not making good movies?Furthermore used movies have nothing to do with piracy just as used games have nothing to do with piracy.

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Ablaoublas2

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@accept_t @Ablaoublas2 @bledsoe45sbc In fact because of the rage that this move would create among gamers you'd have MORE people ACTUALLY pirating games.I already have plenty of friends who never pirated a game in their life who would do it if they felt their rights taken away.Furthermore we would not buy used games if a new game wasn't 60-70 euros...Bottomline:the problem is not this.This is just an excuse for the companies to increase their profits.We as consumers should defend our rights,we have nothing to gain from this despite the smokescreen they are trying to throw at us.

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Ablaoublas2

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@accept_t @Ablaoublas2 @bledsoe45sbc And why should they?If i bye a blueray i can resell it or give it to a friend if i no longer want it.Yet you don't see the movie industry making a fuss over it the same way you don't see book publishers making a fuss about used books.Why should the video game industry be the special snowflake in all this?They make the original profit.Its as it always has been.Its about the damn principle of the thing.How did they make profits until now?Whats the difference?And no,you would not see holywood or the game industry take risks when they can make the next CoD or whatever because risks are bad for companies anyway.You'd have the same crap and at the same time you'l have your right to resell taken away from you.Hollywood was in the crap making movies phase at the 1960's as well until some new filmmakers took risks and tried original things.it has nothing to do with us reselling used media.

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accept_t

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@Ablaoublas2 @bledsoe45sbc used games = piracy

developer dont take any money either way

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bledsoe45sbc

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Edited By bledsoe45sbc

@Ablaoublas2 @bledsoe45sbc hollywood can risk any other movie than a remake or a sequel because it can't afford to fail anymore . and the same thing is happening in gaming , the consoles are going to have to compete with steam , and steams digital service is all about piracy . so in a round about way it is

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DarthLod

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@Ablaoublas2 That's the same thing I have been saying since this all began. They say it's about "profit"....I call bullshit.

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DeadRascal

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How it should be:

Gamers should be allowed to sell/trade games among each other with no regulation. Companies profiting on used sales, should send some of that profit towards the games creators.
How it is:Gamers can sell/trade games among each other with no regulation. Companies like GameStop makes a huge profit of used games sales, developers do not get a share in this.
How I am guessing is going to be:Gamers will have to pay an unlocking fee on games they acquire used. Companies like GameStop will have to lower used sale prices to adjust for the unlocking fee, this will also reduce the amount of money gamers will receive for selling used games. Developers/publishers will get their share in used sales profits.

All in all the gamers ends up with the short end of the stick. And why? Because companies like GameStop has not been willing to make a deal with the gaming industry on how to distribute profits on used game sales in a fair way. So instead the industry fights back by implementing restrictions on used games, getting their share of the profits but at the cost of restricting the freedoms of the average gamer. A real shame for all of us... So GameStop dont play the victim here.
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MaverickZero360

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Most games eventually go down in price. Granted, not being able to sell them would be a disappointment, but you also have to look at this from a broader perspective: Developers aren't getting paid when a game sells used. Then they get cut. Then a smaller team works on the game you love. There is pressure to top the previous game and the game ends up being terrible. Then a new vicious cycle begins. Don't get me wrong, I'm not against used games, but sit back and think about it some.

I'm surprised no one is voicing their concern over the need for a constant Internet connection. If the servers go down, then how're you going to play. I experienced an example of this last week when trying to play Final Fight Double Impact on PSN. The game wouldn't play because the network was down. The bigger controversy revolves around that idea.

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itchyflop

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crap, they ll sell millions, it wont the sales. It just means the companies will make a fortune out of us by pushing their corporate, bully, taking OUR CIVIL RIGHTS AWAY, so the greedy top man sat on their commercial thrones can buy a new Bentley enforcement plans can take effect , but hey they have for years so why stop now.

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PixelBully

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if they ban used games im done with consoles. That's a promise

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hackerrei

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Edited By hackerrei

Where you going to go PC already make it so you can't play used games. So you going to start playing board games.

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alchie11

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@PixelBully Me neither. Only used game I ever bought was The Getaway for the PS2 because Ebgames didn't have a new version. Gamestop is just saying this to cover its ass, so that it can continue to make money reselling games.

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jeremylst1

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Every person has a right to protect what he or she considers his or her intellectual property. It's just not a guarantee you get more profit from it.

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Toysoldier34

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Gamestop hopes that since they make their money from buying a game for $15 and selling it back for $55.

I stopped selling games years ago and have been happy about it. I often regretted selling my games at some point.

If games only sell new the prices can come down and people will still buy, no used games isn't that big of a deal. Look at Steam and PC gaming, we have been doing fine for a long time.

Used games are far overrated. If games just sold for good prices like they do on PC then the issue wouldn't arise. When I can preorder big titles for $30 instead of $60 I don't feel so bad about not being able to sell it. Or buying games within months of their release for under $10 when the best price consoles have seen is $45 for a used copy.

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Tech9

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@Toysoldier34 Probably one of the most intelligent responses I've read on here.

If the price of games comes down, you won't hear anyone complain. I don't know how likely that is, but it's true. That's one of the main reasons people love Steam, the prices and sales. I guess we'll see soon enough.

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Toysoldier34

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@Tech9 @Toysoldier34 Yes many people need to just open their minds about this whole issue because it isn't as big a deal as many think.

It is frustrating when people buy a game used for $55 instead of $60 new from Gamestop since the devs see none of it. I understand used sales if through ebay or in person where you buy a game for $25 that still goes for $60.

But when the difference is so small whether it was new or used meant nothing to the buyer they just want to save a few bucks.

Buying a new title for $60 then selling it to Gamestop for about $20 is what many people do, though if they could buy it from $30-$40 to begin with they save that extra money and get to keep their game. That is why you don't hear people complain that they can't sell the Steam games they bought for $2.50 while everyone else pays $20.

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GH05T-666

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I agree.. I dont like the idea of not being able to sell what i paid for!

whether it be the console or the games for it! im really disappointed with the news (rumors) of the next gen consoles!

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jsmoke03

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thats bs. pc and steam thrive without a used market. the only reason why there is a used market because the games are cheaper used....people don't trade in games to gamestop just to get money, its to get their new games cheaper. if games are cheap, used games wouldn't sell as much. gamestop is just worried their business model would crumble

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OHGFawx

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Won't affect me. I don't buy used.

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phatpantzz

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Edited By phatpantzz

@OHGFawx I always buy new games too or wait until the price drops unless its a big title I want.I wonder if this blocking used games will help new low budget game studios stay in business as they are not having to complete with used AAA titles. It seems its only the AAA studios that are making any decent profits now.

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OHGFawx

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@phatpantzz orginally I thought they were going to do it the way some games already do, meaning if you bought the game used, you would have to buy a $10 pass to access certain aspects of the game, only this time you would be buying a download code to let you play the game period. That would be especially beneficial for the losses they see from Gamefly.

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wexorian

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Why gamespot Fanboys rage on second hand games?or even second hand consoles, DO you realise that Console and game devs Don't Get any cent from second sales and they loose big money.

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Jake518

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@wexorian So? They already earn a good profit from the new games that they already sell. Used games pose no threat the their survival.

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wexorian

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Edited By wexorian

@Jake518 @wexorian Second sales are Second threat after pirating. for them, if you were Dev you would had thinked same way

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ecter1216

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@danteswart @wexorian Never thought about it that way. True, whats to say the CEO is even caring about giving that hardworking developer more money. The CEO probably will just cut his salary more so and take all the increase sales.

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danteswart

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@wexorian actually no, because the devs get shit, the more money the game make the more money the CEO get not the dev. They work 14 hours a day, no bonus and just get their salary as stipulated on their contracts. and stop pulling 'facts' out of your ass. Pirating a threat? nou second hand games a threat? maybe you work for a publisher like ubisoft etc.

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jsmoke03

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Edited By jsmoke03

@Jake518 @wexorian except potential sales

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yoda101280

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@wexorian Well that's their own fault, they should anticipate the needs of their customers and either sell their products cheaper so there's no reason to buy pre-owned or sponsor a pre-owned vendor themselves. There are countless products that are sold used. Once you pay that 50 or 60 bucks that copy of the game belongs to you, if you want to sell it or trade it that is a personal decision.

Whole discussion is moot though people will do what they want. I'll just vote with my wallet as I won't buy any console that blocks pre-owned games, simple as that. This whole thing is about money anyway so you'll either buy their console or not any other discussion is irrelevant.

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FallenOneX

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I don't think that they would risk banning used games (and in the same breath, rental games) only because they would have no choice but to lower the price of said games. $60 is too much for the AVERAGE consumer to pay for a game they could never recoup any monet from if they got tired of it. At the same time, I can see MS or Sony having a "trade in" plan where you mail in old games, and they give you a credit towards downloading something else. I know it sounds stupid, but that's exactly why I think one of them would do it.

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yoda101280

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@FallenOneX rental games? You can still rent console games? I don't even think we have any rental stores left in my city heh.

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FallenOneX

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@yoda101280 That's why Redbox and Gamefly rule......

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wexorian

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Edited By wexorian

@FallenOneX or Gamers can sell their game via their system online store, Both user and Devs should be fine with it.

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wexorian

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Edited By wexorian

Your time is over gamestop Face reality with 2nd hand game fans that Your Shinny era is over.

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juboner

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Edited By juboner

i like gamestop


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NoHyperbolePlz

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There was a discussion on IGN where they said that people who buy mostly used games aren't really giving the companies who made the console or game any money, so they wouldn't be worried about upsetting them.

It's more an issue if you like to split your purchases between a few new and a few used or trade-in your game off your next one. But really if it goes steep discounts digitally like Steam next-gen then it's only trade in value that gets lost because games will be cheaper more regularly. PC & mobile users are used to that and the price drops are great on PC.

Choice is the issue though. I like having the choice to sell a bunch of old games I won't want to keep in my collection etc.

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---Cipher---

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Edited By ---Cipher---

People will always buy the new shiney simply because it's the new shiney. Blocking used games will deter some, but I doubt a significant amount. If anything, people will buy the new consoles not knowing they would block used games then become outraged as they continued to play it.

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surprizemothafu

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Edited By surprizemothafu

@---Cipher--- "then become outraged as they continued to play it."

lol

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legendofsense

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Edited By legendofsense

@---Cipher--- exactly.

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Feedbackula

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I like to dish on GameStop as much as the new customer does, but Hodges made a good point. It's a little screwy that shares dropped 6% based on a rumor, I think.

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Geminon

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@Feedbackula

you find it screwy that a company who gains most of its profits from used games sales had their stock take a small dive after an announcement that the next gen will not support used game sales?

.....how is that the least bit suprising?

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houtx1836

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GME deals heavily in used games, often to parlay that into new sales. Its an important part of their business model. If they aren't able to do that, they'll have to do some major overhauls on their business model. As a result of the rumor, the money panicked. I don't find the reaction that shocking.

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