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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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boom_f15

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The thing people seem to forget is that having a used game "tax" shouldn't make you pay more to play used games. If GameStop is selling a game used for $45 now, then they will have to lower their price commensurate with the future "tax" cost. If they didn't, nobody would buy the used game since you only save a few bucks on used software anyway.

Thats another point, everyone should stop whining about how they wont be able to afford to buy games. The difference between a new and used copy is barely anything. If you can afford $55 for a used new release, you can afford the $60 for a new copy.

The only downside for the consumer (and it is a big downside) is that you will get a lower amount of money for the games you sell, but again it should only be a few bucks.

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Yulaw2000

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@boom_f15

It would seem that Gamestop rips off their customers. You can sell and buy games elsewhere and get a much better deal.

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MuggyTadpole

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$55 for used games? What planet are you living on boy?

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boom_f15

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@MuggyTadpole Go to GameStop, thats how much they are. You can get cheaper games through private sales but the majority of used sales are still from retailers and they only knock a few buck off.

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FarginIcehole

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@boom_f15 @MuggyTadpole This is why the developers and publishers would be wise to offer a buy-back program for their games and offer a substantial trade in value toward the purchase of newer IP's or newer installments of existing franchises. They could turn around and sell their own used games for a bit more profit and it could still be lower than what Gamestop charges for used games.

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ads182

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Edited By ads182

@MuggyTadpole You make a good point. There are so many games out there that shelling out $40-$60 a game can get to be quite expensive.

There are the few games I know that I will like (ME trilogy, GTA, etc.); then there are some games/genres I never would have tried if I hadn't borrowed them from a friend or bought second-hand. I never knew I was a fan of RPG games if I hadn't borrowed Fallout 3 from a friend.

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boom_f15

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@MuggyTadpole I'll buy that.

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MuggyTadpole

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Yea I guess your right. I have never bought any used game outside of private sales (apart from preorders) so Im not too happy about this fee buisness.

But hey, if you dont like it, dont buy it. Although someone made the point that a lot of us got into gaming because we had cheap access to second hand games and consoles. I would never have given Bioware money for ME2 and ME3 if I hadn't played my friend's ME1. This buisness of grabbing money from the second hand game market is going to hurt a lot of people

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GONtheSKYLORD

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Edited By GONtheSKYLORD

@boom_f15 @MuggyTadpole

They will still be hurting software sales. Videogame rentals will be far less attractive.

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andynorman888

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How can they think this is a good idea? EA have just announced theyre giving up on online passes because 'gamers didnt warm to them' and this is the basically the same premise but on a wider scale, its ridiculous. Gaming should be something everyone can do but Xbox is pricing itself into something only the well off will be able to afford. Xbox live fees piss people off so imagine having to pay for offline use once youve already shelled out the money to buy a preowned game. Im not sure who comes up with these ideas but Im confident they have very few friends.

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AlwaysRunning

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@andynorman888 Why do you think EA tried to gain goodwill by saying, "Hey guys, no more Online Pass! Aren't you happy?" They knew what Microsoft was doing and tried to gain a quick boost by exploiting out hatred for this DRM crap. A new, more restrictive system is coming, so who needs Online Pass?

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Cowboy-Bebop

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Edited By Cowboy-Bebop

@AlwaysRunning @andynorman888 Why do you think they stopped supporting the WiiU and started offering MS exclusives and first DLC. You would probably be surprised at how much money EA is giving MS to do this and if you think they aren't you obviously never worked for a corporation.

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boom_f15

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Edited By boom_f15

"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."

As a member of the industry, I would think Tom would have a better understanding of how things work. You as a consumer do own the disc, and you can do whatever you want with it... but you do not own the data on the disc. You have a single user license agreement with the publisher.

Don't get me wrong, I wish we had complete freedom to do what we want with our used games, but publishers do have the right to control how people use their intellectual property.

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viper666

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I have been gaming since a long time and have seen the videogame industry grow because of the interest and support of a lot of people, i undertsand the right of the developers for their intellectual property i have always bought original games mostly new ones and i am glad that i have enough money to spend in this hobby. The videogame companies know that although America is the biggest market for success for their consoles they have to do Well in the rest of the world.Lets take for example a middle class american that cares how is going to invest their hard earned money he will take into consideration a lot of things before doing his invesment for a gift to his sons, and i bet one of them is if he can have access to games, new ones for special ocassions and old ones for a cheaper price and think how many people are doing this with the xbox and ps3 as we speak. They have to take into account this if they want to do Well in this post recession - recession times. Dont get me wrong i want that Sony, Nintendo and MS do Well because that way we will have better and more games but sadly to say and hoping im wrong we are looking at the end of the console wars because maybe the consoles are going to disappear because the world economy is in bad shape and with this type of measures they are not helping the business.

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Edited By viper666

I have been gaming since a long time and have seen the videogame industry grow because of the interest and support of a lot of people, i undertsand the right of the developers for their intellectual property i have always bought original games mostly new ones and i am glad that i have enough money to spend in this hobby. The videogame companies know that even America is the biggest market for success for their consoles they have to do Well in the rest of the world.

Lets take for example a middle class american that cares how is gong to invest their hard earned money he will take into consideration a lot of things a before doing his invesment for a gift to his sons, and i bet one of them is if he can have access to games new ones for special ocassions and old ones for a cheaper price

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smghottie

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Shocker, giant corporation implements tools for consumer control.


If you buy an Xbox, you're an idiot.

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IndremaLover

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Edited By IndremaLover

How telling is this - that when the PS4 was announced, both Sony and MS fans were impressed. But when the Xbox One is "revealed", Xbox fans respond in disgust while PS fans just sit back and laugh.

Oh, and don't forget Sony shares spiking as a result of MS's announcement.

BYT, I've been a long-time Xbox fan since the original.

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dxshah786

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Edited By dxshah786

Maybe i have to stop console gaming, and move on to pc gaming , that seems the cheapest and reasonable, and ill preserve my xbox and ps3 on the closet for my kids and explain why u shouldnt game on consoles

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boom_f15

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Edited By boom_f15

@dxshah786 If you want to game on a PC thats awesome but it's kind of silly to do it because of used game restrictions. There are no used games in the PC world!

And anyone who says gaming on a PC is cheaper is kidding themselves. If you maintain a halfway decent PC you are going to spend a lot more money over the lifespan of one console. As far as games go, they aren't much more (if any),you can get sales on console games too, and (as of now) you can sell them when your are done to recoup some money.

Just use what fits your gaming style and enjoy!

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Superman_legend

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Edited By Superman_legend

@boom_f15 @dxshah786 Not trying to discredit you but do you own decent PC because that's simply not true. I have all console plus PC so not a fan boy in the least but without a doubt PC is the better value. Once you go you won't go back beside for a few exclusive if you're really hardcore like me lol. Here's why, most new PC games are $50 without tax that would be $60 on console with tax plus on green man gaming they give you money back credit from jump and usually a bonus game(s). Steam sales can be huge like 85% off an entire vendor game collection they have big sales all throughout the year. I save way more while keeping my games than even trading in comes close to plus the gas it takes to trade or the shipping to sale. Also, not to mention no backward compatibility issues. I don't have to worry about my game/accessories not working when new console comes out or old one taking up extra space. I can get tons of free content for certain big titles like Skyrim without spending money on DLC.

Nothing wrong with getting a console (game to your hearts content) but its not the best value or does it have the most features. Most people are just afraid of the entry not seeing the bigger picture. You're getting a PC and a gaming/entertain machine all in one. Honestly I didn't know either till I bought one which wasn't for value just for games and features but was absolutely blown away by how much money I saved in the long run. Also, you can log into any steam account even your friends and play all their games for free and they yours. And it also ways to get drm free games and share too. Just the other day my friend looked at my gamelist He said man you got 300 games I was like what? I swear I have maybe 30 xbox games for the price I've paid for my entire collection on PC didn't even no I had that many so many I still haven't touched just got them in bundles on sale. Just bought entire Alan Wake Collection on humble bundle.com for $1. Comes with soundtrack, steam key, and drm free copy too.

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Colekern

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Edited By Colekern

@dxshah786 I switched a while back, and I don't think I'll look back (well, except maybe for infamous).

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AlwaysRunning

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Edited By AlwaysRunning

@dxshah786 Welcome, welcome! Really, PC gaming is no different than [current] console gaming. Plug in a 360 pad, boot up Steam or GoG, and game up a storm! Just stay away from ubisoft and ea, but we were all doing that already, eh?

I'm still holding out hope that PS4 will be the gamer's game console, but if they pull a Microsoft, it's PC and retro consoles for me. No sense riding this coaster all the way into the ground.

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dxshah786

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I completely agree with u, and theres still a heaps of 360 titles i still havnt played yet, and these games will take 5 yrs or more for me to finish, so i dont see the point moving to the new consoles before finising those games

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Superman_legend

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Edited By Superman_legend

@AlwaysRunning @dxshah786 I'm in the same boat PS4 is the only new console that's looking good. They can win easily with Microsoft killing themselves. And it's features go nice with my Vita especially if they keep PS+

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decepticondevil

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Edited By decepticondevil

@Superman_legend @AlwaysRunning @dxshah786 The question is.... what makes us think Sony isn't doing the same thing? They have said they're going to leave the choice up to the developers. That's pretty vague... they can be implementing the exact same (or similar) system and just giving the publishers the choice of whether they want to use it.

Microsoft is greedy and arrogant, but are they stupid enough to do this without some knowledge of the competition make a similar move? Don't you think they publishers that talked them into implementing this system weren't telling them "Don't worry, we're getting Sony to do the same thing... you won't lose customers to them because of it"? I wonder....

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Edited By Superman_legend

@dxshah786 Believe it or not its been the cheapest for years. Console maker just don't want you to know that. I have all console and PC. And I tell you consoles don't compare graphically, gameplay options, game pricing, or amount of exclusives. Check out steam for a week and see the sales you'll save so much money in the end all while saving gas. You probably wanted a good desktop anyway. Can easily make a mid range around $800 or less or just buy a decent one from Best Buy and add a decent graphics card. Oh I forgot it also does everything one does and more lol its a PC.

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locoto

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how backward

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Cartr1dgeBased

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Edited By Cartr1dgeBased

I'm switching to PC. Consoles are just mid-tier PCs now anyways. Might get the PS4 (way down the road), cause they have great exclusives and better build quality (and while my account was hacked on both consoles I didn't lose $100 for 3 months having to fight MS to get my money back). Bungie was the only reason I bought MS hardware in the first place anyways...

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Superman_legend

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PS4 do the exact opposite and you win easily by default. Add PS+++ and it's game over for the next 6 years

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Edited By Superman_legend

Xbox One for that one guy who wants to give Microsoft all there money. This their history mistake after mistake to they epic fail then release what people want then start the fail train all over again. I'm a 100% sure the xbox none will outsell the one. Get a PC you'll have more game and exclusive and save waayyy more money or at least another console. Microsoft wants money for everything and control over everything. Never liked companies like this. Just pure greed.

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danabo

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Hold me, Tom.

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Edited By topeira

On one side i understand MS and i understand the publishers and charging 2$ to play a second hand game seems OK with me. if it's 5$-10$ than that's too steep. this has a lot to do with how much a new licence for a used game costs.

on the other hand so many ppl these days duy DIGITAL COPIES on the PC (steam, for example) where you can't re-sell. im a PC gamer and i usually dont buy used games. steam has great sells so if i am patient, i just wait.

But i wonder - if the X1 is going to force you to pay extra for used games and the PS4 ISN'T than i have a feeling this will "buy" Sony a lot of new consumers. frankly i can't see a good enough reason why sony would implement such a system seeing the MS has....

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Xx_Kares_xX

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Edited By Xx_Kares_xX

@topeira The problem with this way of thinking is that it's no better than buying used. If you wait for steam sales you are buying at such a low price that the publishers still aren't getting enough money to make up for the costs of development, really it's not much better than just buying a used game, and saying otherwise is rather conceded and misinformed.

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Sergeant_KFC

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There goes what could have been the best system of this generation.

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chopsbenedict

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As an over-purchaser of new games which i dont resell, this is unlikely to have a fiscal impact on me personally, however I do loan a lot of games. This would seem to hurt hard or software devs, but in fact, it exposes a large number of people to games or styles which they would otherwise have remained ignorant of, and in many cases (certainly not all, but rather regularly) leads them to purchase either the game loaned or subsequent ones in a series. This is yet another foolish money grab which will put some smaller game devs out of business, along with a host of resale stores, game rentals, and word of mouth going onto rocky ground at least

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sev2010

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now i see y EA stopped online pass shit, cuz it found a new way to pull this off,.s

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cubachino

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Well said Tom McShea

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EdAl2112

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Don't know what the big deal is. If you are an Xbox user you're already used to paying for things other platforms do for free such as playing online and paying your internet connection, netflix and paying MS extra for permission to use those services. So, what's a little more? You are going to pay it anyway wether you like it or not. Don't complain about it. Just pay.

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Superman_legend

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Edited By Superman_legend

@EdAl2112 Exactly why I lost all interest in xbox. For all that money they had less exclusives and more fails. PS3 with Playstation plus now that's value with more exclusives. Though PC owns them all in value in the long run.

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evaneself

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@EdAl2112 So stupid to pay for what they have, not you. When will be server busy or no internet, I hope that you'll enjoy it. When you'll want to play an old game, you will not have any. So stupid.

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be_skeptical

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@EdAl2112 Which is why I don't do any of those on my Xbox. I'm not paying "extra" for that crap.

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chopsbenedict

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@EdAl2112 thats exactly the attitude microsoft is banking on increasing their bottom line for zero effort or quality reward. This is why I own a 360 for the few IPs that are top notch, and pay for about 2 months of gold membership a year, and use the PS3 for EVERYTHING else. My point is that if you dont simply acquiesce to the demands of a greedy(er) corporation, they have to modify their behavior to one which is acceptable to consumers.

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ECH71

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Edited By ECH71

They're already trying to "squash" the pre-owned games market with electronic delivery services such as Steam/Origin...

That's why I no longer pay for games. :)

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evaneself

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Edited By evaneself

@ECH71 Right, I still buy games base-discs with no activation.


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