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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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JACOBDRAGON666

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Edited By JACOBDRAGON666

Haha im seeing alot of Comments saying people will buy next gen. Personaly i cant afford new games every month. If there are no used games i wont be buying it.il simply go back to the pc.

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Megavideogamer

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I kinda hope that MS does launch first. They release a Xbox 720 that does block used games. I Sony were smart they could "Win" next race. By releasing the PS4 that doesn't block used games. Microsoft I can see putting their head into the fire.

Sony Should let MS do this. Then release PS4 as usual. They did learn the PSPgo lesson. It didn't last 1 full year. Niether will Xbox 720 or PS4 if they do this. This experiment will only last 6 months tops.

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ColdstoneX3

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@Megavideogamer my worry with that is, without decent competition, sony will be free to implement whatever the heck they like, no matter how it works out in the future, i see us gamers being on the losing side one way or another.

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WDBmasamunezero

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@Megavideogamer

would be funny if microsoft and sony did this blocking used games, nintendo wil win again with a last gen console hehe.

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exedeath

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Edited By exedeath

GameStop is getting scared. Cause they make their money from the used games, and if that goes so does that god awful company. I won't loose a seconds worth of sleep over that company burning to the ground.

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hampton2003

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lol, keep telling yourself that, people will buy the console anyway.

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HiroArka

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Ha ha ha! Funny! People will buy the new consoles. Used games or not people will eat that all up!

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SecularSage

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It's all a rather silly debate, because digital distribution is likely to replace physical media by the end of this decade. The only time physical distribution is needed is when the physical media can offer a far greater amount of storage space for the media in question than the bandwidth required to download the digital version.

Currently, Blu-Ray discs can hold 10 or more layers of data with little problem, which bodes well for physical media in the short-term (since 4K TVs are on the horizon and likely to be supported by either the next generation of consoles or the one following it). But we're already at the point where 0-day releases can be distributed digitally with few problems, even for Blu-Ray games that are several GB. The advantage of digital distribution is that it allows for dynamic pricing, easier updates and greater control over the software. Sony and MS are definitely concerned about locking down their systems, and forcing more people to buy new games through their sales channels is a big part of that.

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Khasym

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Edited By Khasym

@SecularSage You're right. This is the last console generation that will use discs. But, obstructing used content, by disabling the disc is the worst possible move. When you buy something digitally now, it's yours regardless of your hardware. if your 360 or PS3 blows up, your digital games are still there. You just need to buy a new console.

Discs on the other hand, can still be stolen by someone who also steals your hardware. Remember, even though the disc may be useless to another ACCOUNT, if someone mods your 360 or PS 3, to connect to unofficial networks, they would still be able to play those stolen games.

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BahamutZERO

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@SecularSage HDD has to be pretty big if it were to go digital distribution only. Besides everybody knows how well the PSPGo failed.

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Poordevil

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Edited By Poordevil

@BahamutZERO @SecularSage MS or Sony will store most of your purchased games on their servers. You only install the games you are actually playing and uninstall those you are finished with. That 's how Steam works.

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victorlamy

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@Poordevil @BahamutZERO @SecularSage if we're gonna be downloading the next gen 20+ gig games, i DEMAND free fios and millions of terabyte hds.


the post office can deliver faster than i can download 20 gigs

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phillybreezy

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@Poordevil @BahamutZERO @SecularSage Maybe it's just me but I love seeing my hard, physical copies of games lined up on my shelf. I own ONE digital game only because a code was given to me. Digital games are not something I prefer.

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gohangeorge

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Edited By gohangeorge

@SecularSage I'd hate digital-only. Aside from the satisfaction of owning a physical copy nothing beats the scent of a fresh new game. :)

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beavisj

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@gohangeorge @SecularSage Also if a game turns out to be horrible, your out money you most likely can't get back

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macnrob

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Edited By macnrob

I agree, that the developers are losing money with the used games market. Retailers like GameStop/EB Games, pay peanuts for your games, turn around and sell it for only $5.00 cheaper the the new ones.

My big concern is that it'll be impossible to find older games that might not be in production anymore.

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SorrowSurvivor

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I'm pretty sure both PS4/720 are going to try and block used games in their own ways because in the end many people complaining will still buy these systems anyway, just maybe not as quickly.

Hopefully though if they do block it can lead to things like reduced cost, lower/no price for DLC/season passes and maybe a kind of digital copy rental for people who don't want to pay full price for a potentially bad game.

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phillybreezy

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If publishers really wanted to recoup losses from used game sales, perhaps they should initiate a buy back program similar to what Amazon does with textbooks (for example). That way people aren't getting ripped off by the likes of GameStop, publishers make profit on used game sales and gamers are happy. Just a thought.

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HADES2001

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Edited By HADES2001

yep if they block used games the PS3/X360 will be the last generation of consoles i will own.

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RustedTruck650

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@HADES2001 then good lock playing on your DS of Smart Phone.

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HADES2001

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Edited By HADES2001

@RustedTruck650 @HADES2001 nope if consoles dont support second hand there is no use for a console i can go back to a PC again. and also i still own almost every console since the atari 2600 only missing a atari jaguar at the moment so plenty of games to get for the old gameconsoles and NES/SNES still got a lot of games i never tried

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EKGProd

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I sure as hell wouldn't buy any system that blocked used games, that's for sure. As it is, I can only afford one game a month, and the way I do that is to buy a game, play it for a month, trade it in, buy a new game, rinse and repeat. If used games were blocked, I would be able to buy less than half of the games I currently do, and it wouldn't be worth it for me to buy the console.

Yep, they'd pretty much be shooting themselves in the foot right out of the gate if any of them blocked used games.

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Poordevil

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I don't see why MS or Sony would lock out older games. They would sell them new at discount prices. There is no way every game would sell for the same price as a newly released title. That would be unreasonable even for MS or Sony. There would be sales on older titles and cheaper games available just like we have on Steam. But they will have the games market corralled for their consoles, which is what they are going for. How many times have we heard, it's the software not the hardware where the console money is made? That they sell the hardware at a loss and make it up in software sales. Having control of game sales is key for them in order to maximize profit.

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RustedTruck650

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Edited By RustedTruck650

@Poordevil Old games will still sell at lower prices because that's the way economy works. Old games being locked out? They will be locked once you play it for the first time but theres no way to sell them at discount prices and having the revenue go to devs, theres no system that will make that possible and i dont think it will ever happen. Well, maybe it wil happen when the games transition to only digital download.

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Poordevil

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@RustedTruck650 @Poordevil Right, reselling your games will be out. Once you buy a game it will be yours for good. That much is for sure. But you will be able to get games at less that full retail price. Especially older games, meaning not newly released but months or weeks old. Prices and price drops would depend largely on how well a game itself sells.

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Shahnil

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Edited By Shahnil

People dont get it. They want cheap ways to play great games and developers need the revenue to continue making great games.

Does not matter to me to be honest I have never bought a used game my way to support great work.

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RustedTruck650

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@Shahnil wheres you point?

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DR-ZMBK

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Edited By DR-ZMBK

GameStop are only complaining because this will hurt their business big time. They make a lot of money by ripping gamers off. Trade ins are a disservice to gamers. I buy a game for 60, GameStop buys it for 30 or less, then sell it again for more.I never buy used game, not from them or any retailer.I am not rich, but think 1 new game every month is a great way to save money and not need used games. You don't have to buy every game day one; I don't.

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indzman

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Edited By indzman

Hope Xbox 720 or PS 4 sales diminish to the point of bankruptcy if they decide to block used games or not backwards compatible. PC gaming and steam rules!

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soulless4now

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@indzman I doubt it would make them backrupt seeing as how gaming is just one division of their respective companies, but profits from said division would cause a skyfall.

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ClaudiusCaesar

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Edited By ClaudiusCaesar

Blocking used games will not affect console sales. If not having used games were that bad, PC gaming and Steam would NOT exist. Also, digital sells would not going up year after year.

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Spartan_418

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@ClaudiusCaesar If it was possible to resell PC games, there might not be as much piracy of PC games.

Piracy is less common on consoles, partly because used games are cheap.

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ClaudiusCaesar

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@Spartan_418 No wonder publishers are going always online. That will be the new trend for the next few years.

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phillybreezy

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Edited By phillybreezy

@ClaudiusCaesar Maybe not. PC games have been that way for some time now, so gamers are accustomed to the fact that they can only purchase new games. Console gaming is a different ball game of sorts. As gamers can rent games, trade games with friends, etc. Additionally, most PC games are downloaded away which cannot be traded anyway.

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ClaudiusCaesar

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Edited By ClaudiusCaesar

@ppettie So, if consoles stop used games, which platform those who want rent or buy used games will play on?

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Spartan_418

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Edited By Spartan_418

They're at least partly right. If only one of the two consoles blocks used games, I'll probably buy the one that doesn't.

It'll be a trickier choice if they both do, though. Might just stick with PC gaming and avoid the consoles, but... I really want to play Halo 5 and Uncharted 4 :/

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hydrobeast

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Edited By hydrobeast

I hope they don't block use games. I love used games for one reason cheapness. If the game is over 10 years old its dirt cheap used. unless you actually buy it from the many companies website or service. that is why i love used games it makes sense. You don't pay full price for a any other 10 years plus of any other media like a dvd or book do you. Chances are not very likely.


Though I will admit gamestop needs to quit with there ways

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RustedTruck650

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Edited By RustedTruck650

@hydrobeast you dont pay full price for a new 10 yr old game.

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hydrobeast

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Edited By hydrobeast

@RustedTruck650 @hydrobeast Sometime it really depends on the game.

And if i like the used game enough I go out and buy a ligit new copy if the game sucks or just average I don't.

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WDBmasamunezero

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@RustedTruck650 @hydrobeast

Earthbound

Or any other decent JRPG on the SNES lol.

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RustedTruck650

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@hydrobeast @RustedTruck650 Well its never happened to me and i've never seen old games being sold at high prices.

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RustedTruck650

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Edited By RustedTruck650

Gamestop needs to die! Not only they sell your used games 3 times more expensive than what they paid us for it but this whole used game market ruins the gaming industry. Dev teams get laid off because of this, some people will buy used games and then when they finish the game then they resell it to gamestop and the cycle continues. So new games dont sell as they should and so profits are greatly affected by this....".black market", i guess you could call it that.

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gohangeorge

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@RustedTruck650 That's essentially what it boils down two.

Used game sales in and of themselves isn't bad; it keeps games in circulation and provides used junk games somewhere to go besides the dump. The problem is that devs and publishers make no $ from it - for GameStop it's pure profit.

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cogadh

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Edited By cogadh

@gohangeorge @RustedTruck650 Setting aside GameStop's unethical business practices (which I totally agree with you on), your assessment of the used market is way off. First of all, devs and publishers shouldn't see a dime of the used market. Does Ford get any compensation when you sell your used car? New games don't sell well because of it? If that logic were true, libraries should have put the book industry out of business centuries ago. Devs get laid off because of it? No, devs get laid off when their games don't sell as well as projected and that can happen for any number of reasons, the most common of which is the game simply sucked. Gaming profits have steadily grown over the last decade to the point that it is now making multi-billions of dollars in straight profits (not sales, profits in their pocket). The game industry now exceeds Hollywood and the music industry in annual profits and has for the last few years. The used game market has existed side-by-side with that growth and those profits and hasn't hurt them in the slightest.

The fact is, the used video game market only flourishes because video games have become way too expensive and more often than not, they are not worth that expense. Paying $60 (or more with DLC and "online passes") for something that might turn out to be a piece of crap is too risky in today's economy. Better to wait until the reviews are in and look for a cheaper used copy that is actually worth your investment. GameStop realized this long ago and takes full advantage of it. We might not like their methods, but no one said you have to sell to or buy from them, there are plenty of other people and businesses in the used market (Best Buy, Amazon, EBay, flea markets, local yard sales, etc.). If any console manufacturer takes the steps to block the used market, they had better also take the step of lowering their prices to a reasonable level, otherwise they are going to be in for some serious consumer backlash. That will be what ruins the gaming industry, much faster and more effectively than used games sales ever could.

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Heshertonfist

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Edited By Heshertonfist

@queuing_for_PS4 That doesn't make ANY sense.

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Heshertonfist

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@queuing_for_PS4 What a tortured little world you live in...

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Ceclor

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Edited By Ceclor

I don't shop at Gamestop so I'm not really concerned about that. I prefer to buy all of my games new. I only own two that are used (Castlevania: SotN and Einhander.) I bought them from a neighbor kid in the 1990's. I certainly do hope you can play them on the next consoles. But if I cannot, well, I still have the current consoles. I'm not throwing them away. Heck, I would still hook up my Original NES to play games on it if my current TV didn't enlarge the graphics so much that Mario appears as a series of three inch squares stacked on top of each other (I'm sure there is a way to fix that but TVs are not my forte.)

The new consoles have to have games on them I want to play before I will buy them. This is not a Windows upgrade. It's a brand new system.

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TheKungFool

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Edited By TheKungFool

well, at least this opinion is from a nuetral and un-biased source!

thanks GameStop, but we're well aware of what you're really saying:

"we enjoy buying used games for peanuts and re-selling them for $5 less than brand-new copies, and consoles not playing used games would be a detriment to our rediculous and shady and pricing practices"

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sensei_hEnRY

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Edited By sensei_hEnRY

if Sony and Microsoft's new consoles would be like that, i'd start investing on a good PC. Or maybe a Wii U.

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