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Xbox One's Offline Pass Is an Ill-Conceived Tax

Tom Mc Shea warns that Microsoft might be killing itself rather than the used-games market.

1645 Comments
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Microsoft spent an hour explaining why the Xbox One should be the centerpiece of your living room entertainment experience. However, in just one sentence, it may have destroyed its upcoming console's appeal as a gaming platform. Used games, an aspect of this industry that has thrived for decades, may come with an extra cost in the future. Apparently, you may no longer buy a dust-coated game or lend your favorite offering to a friend without throwing money Microsoft's way. The Xbox One is attempting to squash the pre-owned market, and if such a detrimental tax is implemented, it will have disastrous results for the sustained health of Microsoft's third console.

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In a statement to Wired, Microsoft stated that "on the new Xbox, all game discs are installed to the HDD to play." Once the game is tied to an account, if another person wants to play it on their system, they will have to pay an undisclosed fee. Microsoft did say it will reveal its used-games plan in the future, but examining the facts as we now know them, this policy seems inspired by the online passes that some current generation games require for connected play. Microsoft is essentially implementing an offline pass. And how could its unannounced plan alleviate this excessive burden? Maybe Microsoft will let you play off the disc for a limited time before you're forced to shell out money, or maybe every game will be required to have a demo. Either way, the used-game, rental, and lending markets will dry up.

The Xbox One is an entertainment curiosity rather than the next video game revolution.

This draconian policy has been slowly building for the last decade. As digital games have become more prevalent, so too have the measures to limit their post-retail distribution. Xbox Live Arcade and PlayStation Network games are tied to the accounts that purchased them, and Steam users have dealt with a similar barrier for years. And the mobile market, which has been heralded as the future by so many, is in the same situation. The idea of a game being playable only by the person who first spent money on it has existed long enough that such a move on Microsoft's part should be expected. However, this is the first time any company has tried to destroy the resell market for disc-based games, and it's that distinction that's so important.

People have long embraced the used market in all forms of media. Whether we're letting a friend read our copy of The Catcher in the Rye, browsing the used-CD rack for vintage Pearl Jam, or picking up a cheap copy of Jurassic Park III to see raptors talk, we've become accustomed to borrowing or cheaply buying once-loved entertainment. And this has been a core aspect of gaming for longer than most gamers have been alive. We like the idea that once we buy a physical product, we own it. So it's baffling that Microsoft would ignore years of consumer tenancies with this extortionist tax. As long as games are on a disc, people will expect to be able to lend them to friends without having to pay Microsoft for this privilege.

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Video games can be expensive, much more so than other media, so shelling out $60 for a dozen hours of entertainment is a tough pill to swallow. We've found ways of enjoying our favorite pastime without going broke. Borrowing some games while purchasing others has been a practice of many people for years, and there's no reason such a philosophy couldn't serve both consumers and publishers going forward. Microsoft is burning bridges if it decides to enact an offline pass. It will create an infrastructure that is even more punishing for new intellectual properties. People will be less likely to try an untested franchise if they have to pay full price for it, so Microsoft is just pushing the industry further into the innovation-be-damned mentality that has been a plague the last few years.

Ultimately, consumers determine the success or failure of any company.The importance of catering to people with money to spend cannot be overstated, and Microsoft is hurting that relationship, possibly irreparably so. There is no way to spin this extra fee so that it's more palatable for the buying public. This is unabashed greed, pure and simple, and the defining aspect of the Xbox One. Microsoft wants to be everything to everyone, your one-stop shop for television, music, movies, Internet access, and video games. However, such integration isn't worth emptying your wallet for. It's not worth giving up your rights as a consumer. A disc or cartridge is ours to do with what we choose, and until Microsoft acknowledges this fact, the Xbox One is an entertainment curiosity rather than the next video game revolution.

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new128hits

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Edited By new128hits

Ready...Thatwas allI wanted to say...Microsoftburiestheownsystem...I amBrazilianandafter what Ihave seen and read...Alivewith yoursonyplaytation4andnitendowiiu...wanta game console...alreadyhaveTVandmoviesmore ...Ourblu-raytookto wherewe want andwhen we want towatchunfortunatelyI have tosupportSonyand liveit!!

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Lokero8

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so..that's why smart and angry people falls into piracy (?)



:d

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FSOTP

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I dont understand all the dopey xbox fan boys. It seems like they charge you extra for everything already on the current xbox. AM i missing something?

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Bread_or_Decide

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Edited By Bread_or_Decide

XBOX charges you to use internet you paid for. XBOX charges you to use NETFLIX you paid for. Now they're going to charge you to borrow or purchase a used game someone else already paid for. They have become the ultimate middle man. I really hope the XBOX ONE does even worse than the Wii U in the retail market. Aren't people tired of having their wallets raped for little to nothing in return? PS3 has free online multiplayer and their pay service actually OFFERS a SERVICE. Even though Wii online sucked at least it was free.

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Adapttttttt

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The only thing I'll be passing up by not getting the new Xbox is Halo, I think I'll live. Sony take my money pls

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Javier

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Edited By Javier

@Adapttttttt You know that Sony is planning the same scheme but MS said it first?

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blackace

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I hope that XBox Support rep who said, "There will be no fee for used games." was right. Hopefully they will rethink this before the E3. Seems like it's something that can easily be corrected if it's in fact true or not.

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kerrman

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Can't wait for the PS4!

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blackace

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@kerrman I can't wait for more info on the PS4. Launch games, price. Online payment strategy, if PSN games will play on PS4, any new information about used games.

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smitherean

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What's good for the industry is good for the consumer, and GameStop profiteering off of used games is not good for the industry.


That being said, this policy will take a lot of selling. A low initial cost and a sub-$60 baseline game cost would go a long way. Don't forget that classics like Bioshock et al tend to be very affordable on xBox Live Arcade - it's not hard to get good old games on the cheap outside of the second-hand market.

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blackace

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@smitherean No used games is bad for gamers and will eventually be bad for publishers, developers, Gamestop and Gamefly.

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smitherean

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@blackace @smitherean Of course it's bad for Gamestop. That' the point, isn't it? By why do you think it will be bad for devs? Despite what people say, I don't think this policy will reduce the money people spend on games - just the amount going into Gamestop exec's pockets.


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soltar

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Edited By soltar

@smitherean @blackace I recently purchased Hitman Absolution based of a used game purchase of the previous game that I found at Gamestop for $10. I also plan to pick up the HD Trilogy in the near future. I would not have touched either had it not been for finding the used 2 year old game.

The same is true for Bioshock. Rented the first one, bought the second and third one. If you are spending $60 bucks and now $70 on a single title, you are not very likely to stray outside a few choice titles. I think both companies made out pretty well on my rental/used game purchases.

Now that might be the exception rather than the rule, but I am sure that there are countless other examples out there.

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ooblah

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@smitherean @blackace

It's a difficult situation. On the one hand, MS should, in no way, control how I use my game disk. As long as I'm not making illegal copies, it should be up to my discretion. On the other hand, resell outlets make a ton of profit from buying and selling used games, and the game devs receive nothing. If anything, the devs should receive a fee, not MS (unless owned by MS). Then you have to factor in people who rent games from services like GameFly, or even their local rental store (if any still exist). Will it work like Redbox where there are special copies of games that are strictly for rental purposes and are incoded to work on any machine - or will you still have to pay a fee on top of your rental fee? Seeing as how MS hasn't elaborated, it's too early to tell, but this doesn't bode well.

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Daian

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I really hope this ends up hurting sales badly, it's the only way they'll learn, the only language they understand is money.

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Uesugi-dono

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Thank you Tom, we don't always agree but you remain one of the clearest voices of reason on staff. You nailed it, brother.

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Dragon_Nexus

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Edited By Dragon_Nexus

I liked the huge mis-step in PR Ms used when they said you'll have "permission" to play the game.

MS, I already have a mother. I don't need a nanny telling me what I'm "allowed" to do.

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DesertEaglex24

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Edited By DesertEaglex24

MS has shot themselves in the foot with their bs anti consumer methods.

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LJS9502_basic

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Edited By LJS9502_basic

I pick up all the consoles sooner or later but this console will be a miss if MS does enact this. I don't always get games when they are new and sometimes used is the only way to purchase a game. And some games aren't worth $60 dollars to me.

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OldKye

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@LJS9502_basic Same I even bought a Wii-U and re-bought my Xbox 360 after it's second red ring of death and yet I won't be getting this one if it's true and won't feel I'm missing a thing.

If a developer makes a exclusive for it it won't be any different to me then a game released in japan only "guess that developer doesn't want me to play it" besides now a days that doesn't work anymore nothing is "exclusive" forever.

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deactivated-6737ee1dc6e37

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" The Xbox One is attempting to squash the pre-owned market, and if such a detrimental tax is implemented, it will have disastrous results for the sustained health of Microsoft's third console"

Can I link from other articles how MS knows how important the used games market is and how they are allowing used game sales? How did you miss that? I think it was gameinformer that had an interview confirming this already. Hmmmmm

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McGregor

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@nickpeck36 Allowing used games sales isn't the issue. It's the "fee" that is the issue. And at this point in time, the "fee" looks to be full retail price (unless that has changed since yesterday).

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blackace

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@McGregor @nickpeck36 There were like 4 different comments from 4 different people at Microsoft. Some said there would be a small fee. someone else said there would be a full price fee and another rep said there would be NO fee. Now, Microsoft is no longer talking about it. They said everything will be cleared up at the E3. I hope so, cause I'm not paying a fee to play a used game. No word from Sony on the matter yet. They said you'll be able to play used games, but they said nothing about if they will charge a fee or not.

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Uesugi-dono

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@nickpeck36 How did you miss the fact that MS will be the only retailer?

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cousinmerl

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Microsoft will have a **** storm if they go ahead with this current system. People arn't stupid

The rule of thumb should be if you buy a retail physical copy it should run on any system that its built for (no online system required) and for me Microsoft should offer online downloadable versions to counter the retail market - and as a result of using it online, tether it to the users profile or their system. (because hey you bought it online!) and hey maybe offer a few DLC or discount deals in the process!


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deactivated-6737ee1dc6e37

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@cousinmerl Actually, people are stupid because they write things off before they see EVERYTHING. E3, wait for it and enjoy the announcements made. Don't think sony isn't doing the same things, sony is requiring mandatory game installs tied to your account just like MS.

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McGregor

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@nickpeck36 @cousinmerl That is a rumor about Sony, and not even a likely one with all the backlash Microsoft is getting. If Sony does put a "fee" on used games (or the developers do), then it's easy for me to skip both systems, and stay with PC for high graphic gaming. Nintendo may just be successful with their Wii U yet!

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mjswooosh

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@nickpeck36 This is unconfirmed. Don't spread bullshit about the PS4 until we have confirmation.

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cousinmerl

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Edited By cousinmerl

@nickpeck36 @cousinmerl really?! - sigh... well that sucks too. what new games are on the wiiU....hmmm

surely one of the two is going to buckle under the weight of angry users not buying their console.

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Edited By McGregor

@cousinmerl Sony is hurting a bit more than Microsoft. I'd be surprised if they didn't use this opportunity to grab the users ready to jump ship.

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Edited By Allan_X

Microsoft doesn't understand why Steam is so popular and why their stance against used Xbox One games isn't. I'll explain why. It's because you can get like ten games for the price of one on Steam during their sales. That more than compensates for not having a physical copy to re-sell.

Microsoft doesn't want to go the digital-distribution-only route. They want you to pay full price for physical media, and then they want to dictate what you can do with it.

The word I would use for that particular stratagem is "dastardly".

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keldarironfist

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@Allan_X Steam is garbage, this is just another steambox. Steam means no physical copies, and the steamcrippled physical games are tied to an account, just like this. And no, getting your games cheaper doesn't make me or many others feel better about not owning our games.

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Jasper_73

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@Allan_X like i said in a reply a bit further down. the games industry is in serious need of regulation. such business models as M$ are putting forward are extremely dubious. i mean collecting data on you through camera on kinect is intrusive in the extreme. they should be answerable to an independent body that exist to ensure fairness for the consumers, developers and manufacturers alike.

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Xx_Kares_xX

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@Jasper_73 @Allan_X I couldn't agree more... except all the main people in the 'entertainment industry' (whether that be the MPAA or video games companies) Have been buying our government for a long time. Anyone remember CISPA passing a couple months ago? x.x

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mjswooosh

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Edited By mjswooosh

@Jasper_73 @Allan_X Unfortunately Jasper, most of the dumb ass DudeBros that MS is targeting to sell the One to don't even know how to spell Constitution, let alone know they have certain rights and/or expectations of privacy...not to mention market fairness, monopoly/price fixing, etc.... You name it, MS is violating all kinds of stuff with this console...not least of which is that it's an underpowered, over-DRMed piece of shit compared to the PS4 (at least in terms of what we know of the PS4 so far).

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keldarironfist

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Boycott this console plain and simple. We can't support this. Boycott digital distribution and Steam as well, because this is the inspiration for this crap, only M$ is taking it to the next level. Buy physical media only, and only if it is not steam crippled or DRM crippled as the xbox one games will be. Vote for your rights as a consumer, vote with your dollars.

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DeltaMike90

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@keldarironfist I disagree with boycotting Steam. Of course Steam uses drm but from my experience it's not very intrusive. And the price reductions they offer can significantly reduce the cost of gaming (much needed in the pc market). Valve also does a lot to help indie devs use Steam, like the new greenlight thing. Digital distribution is much cheaper than physical media, and if only other online retailers would follow Steam and cut prices to reflect that, there would be no problem. Much depends also on game design; other devs better not follow the example of SimCity. I really hope Firaxis don't do the same thing with Civilization...

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keldarironfist

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Edited By keldarironfist

@DeltaMike90 @keldarironfist Reduced prices dont make up for a lack of ownership of games. I am no forced to import games from europe just to avoid steam. Steam doesn't *use* DRM, it IS DRM. I grew up playing games on PC in the 90's and this is very anti consumer, just like the xbox one.

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Allan_X

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@Clownbabby CPU/RAM clock speed and overall performance are not the same thing. What's more important is the architecture and how developers take advantage of it.

DDR3 is already faster than you'll ever need. The memory bandwidth on the Xbox One is 68 gigabits per second, while the PS4's is 176. Both of those are complete and total overkill for even the most demanding games. Most developers won't even come close to utilizing all of that without blowing their budget.

To use an analogy, this is like having a Union Pacific Challenger or a Big Boy pull a train of five Amtrak passenger cars. These machines are both supercomputers. It's ludicrous.

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section 8

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@Allan_X They might be overkill by today's standards, but look at the history of ALL systems. The games get better and better as devs learn how to utilize the hardware. Would you rather spend $500 on a system that reaches max potential in 1 year, or 3?

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Raggi_Boy

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@Clownbabby it could work the other way, where developers base games on the ps4 and then they get crappy port effect on the xbox, which would be hilarious, exclusives should be perfect whatever though

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SpriggsyUK

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@neotheinstein @GameSpot no MS have just made some shitty ass ideas into a reality

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BenderUnit22

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I almost always buy games new to support the companies and people that made them, but this is certainly a bad business move by Microsoft if the fee is too high.

Also, there are talking raptors in Jurassic Park 3?

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punksterdaddy

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Good point well made Tom.

Being a gamer on the Xbox 360 and the original, this next console will not be part of my collection.

Even if they change their policies on this issue, I've had enough!

They WILL change this, I believe? Simply because their launch will turn out to be a disaster if they don't?

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Jasper_73

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@punksterdaddy i agree even if they make changes to some of the policies that have been declared, its too late for me. i do not want to invest in a company that thinks it is ok to use such dubious business practices. the games industry is in serious need of regulation. answerable to an independent body that makes sure the business models and practices are fair for consumers, developers and manufacturers alike.

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MondasM

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as far as i've understood it you cannot change the hdd in the console as well, which is a no no for me...

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JRLennis

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Tom Mc Shea nailed it. There's really nothing more to be said.

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neotheinstein

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Edited By neotheinstein

let gamespot be GAMESPOT! and not rantspot.

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SmooveE

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@neotheinstein Way to add to the discussion. Well done.

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punksterdaddy

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Edited By punksterdaddy

@neotheinstein

Are you just posting and reposting Pro-Microsoft posts to aid them?

What is your game mate, seriously? This is a site for gamers, not employees of Game companies who are only here to boost opinions or troll comments?

You just posted the same nonsense in Kevin VanOrd's page based on his opinion?

Exactly the same?

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