Gamestop CEO: Next-gen X-Box will not block used games

[The Director]

Gamestop CEO: Next Generation of consoles will not block used games

For the full article, click here:

http://www.digitaltrends.com/gaming/xbox-720-playstation-4-wont-block-used-games-says-gamestop/

 

 

Despite rumors to the contrary, GameStop says that the next Xbox, Playstation, and Wii won't block used games. There is however plenty of reason for those console makers to want used games to go away.

 

Video game retailer GameStop relies on used games sales for nearly half of its profits. Game makers by and large rely on GameStop to sell their wares in the U.S. There have been rumors though that the next round of consoles from Microsoft, Sony, and Nintendo will block used games from running. During his company’s Thursday earnings call though, GameStop CEO Paul Raines said that he doesn’t believe the Xbox 720, PlayStation 4, or Wii U will block used games. GameStop wants to make sure that you keep paying $55 for a used copy of Assassin’s Creed 9 when a brand new copy runs just $60, and it’s fully confident that this future will come to pass.

“We think it’s unlikely that there would be that next-gen console because the model simply hasn’t been proven to work. Remember that used video games have a residual value. Remember that GameStop generates $1.2 billion of trade credits around the world with out used games model,” said Raines. “So consider taking used games out of that, you’d have to find new ways to sell the games, and our partners at the console companies have great relationships with us.” Translation: We’ve got game makers precisely where we want them and they don’t dare change that.

 

So, basically, the CEO of Gamestop is convinced that Microsoft, Sony, and Nintendo will not block used games on the new consoles that will be coming out. Why? Because it would hurt Gamestop, and Gamestop is one of the largest (if not the largest) game retailer in the world. Basically, if Gamestop gets hurt, then all three companies will have to find other ways to sell their games, and will potentially lose money.

 

Gamestop makes Microsoft, Sony, and Nintendo more money than any other third party retailer on the planet. They hype up, pre-order, and advertise for games and consoles for cheaper than a TV ad. As a result, the console companies get HUGE profits from every release that Gamestop advertises.

 

To use a metaphor, Gamestop and the console companies are the Yin and Yang of the game development world. If the Yang (console companies) damaged the Yin, then the Yin would lose it's capabilities to assist the Yang and the Yang would end up hurt because it would have to try to fend for itself.

[Complete Loser]

Cool, now we aren't gonna be so friggin confused by the mess that would have been caused if the companies forced you to buy new copies of the game instead of a used game, thanks TD.

[TWD26]

I always buy new, but this is good to hear though

[Drizzy_Dan]

Great find and a great post Director! I love my Gamestop and if I couldn't buy used games... well I don't really know what would happen because I can buy used games but it'd be bad!

[Ryu♥Hayabusa]

Unless they recorded which console a game was played first on, they couldn't block them. How would they block used games without doing this?

[Zuko 'Zarhamee]

Unless they recorded which console a game was played first on, they couldn't block them. How would they block used games without doing this?

They could just ditch physical media, such as the disks that they use now, and go for an entirely download based buying system.

[Real Talk]

They could just ditch physical media, such as the disks that they use now, and go for an entirely download based buying system.

 

Wouldnt we all need way bigger hard drives though? I've accumulated a lot of games over the years cant imagine how much space I'd need to put them all into my hard drive.

[The Director]

Wouldnt we all need way bigger hard drives though? I've accumulated a lot of games over the years cant imagine how much space I'd need to put them all into my hard drive.

Depends on the way they do it. It is possible to cut down on disc space by storing certain parts of the games over the internet, which I believe is what Steam does.

 

As for the whole download thing, I doubt they would do that. It would undercut their profits to have a system that is ONLY playable online, which this definitely would be. While the X-Box 360 is more fun online, it still has massive offline playability, which makes it to where people who don't have constant (or any) internet access still want to buy them. There are enough people who don't subscribe to XBL or have internet that have bought X-Box to make it a sizable loss if they do this.

 

They would probably lose more money doing this than they would gain from used games no longer being sold.

[XboxRox]

gamestop sucks imho. i like buying games online cuz it is easier.

[Complete Loser]

gamestop sucks imho. i like buying games online cuz it is easier.

I beg to differ, they provide some of the best stuff for new game releases, they have some pretty sound memberships that actually are good, they have a sound foothold in selling used games, they can also sell new games, they have a much wider variety of games across all the major platforms then normal stores even Xbox LIVE Marketplace, membership rewards for buying, trading in, and selling give you reward points to buy other games and all that stuff, they have good pre-order bonuses, that is all the stuff I can think of off the top of my head for now.

[Real Talk]

One of the things I really disliked about Gamestop was how cheap they offered to buy games off you. However they seem to be offering better deals now a days imo.

[Twinreaper]

Gamestop and stores just like it should die already. gamestop is no saving grace to the gaming community. Video games were around a hell of a lot longer than Gamestop and besides, even if Gamestop went bye-bye, there are like a million other places to buy games and consoles used/new from. Amazon, new egg, Best Buy, walmart, K-Mart, Radio Shack, E-Bay.....just to name a few. Besides that, Microsoft is now heavily opening many new MS stores throughout the US. Needless to say, if I had to choose between a cut-throat rip-off pile of **** like Gamestop, or Microsoft Store...I'm going to the MS store.

[The Director]

Starting to move a bit off-topic. The topic at hand is used games going goodbye, not Gamestop. Personally, I don't like Gamestop because they drove two of my favorite gaming stores (Gamescape and Jerry's Games) out of business. That, however, is neither here nor there.

 

The point is that the rumor of used games not being available for next-gen consoles is being shot down left and right from many different people and one of those people just so happens to be the Chief Executive Officer of Gamestop.

[Twinreaper]

I'm calling BS on his claim. To me it just reeks of a publicity stunt to get people talking. Noone can say 100^ what the new generation of consoles will do and what they won't do. For anyone to make a claim like this is just silly. I'll let you all know soon after I get my dev kit....

[Anarchy]

gamestop sucks imho. i like buying games online cuz it is easier.

Me too, but i'm pre ordering Halo 4 from gamestop because the stuff that comes with it.

[Twinreaper]

Ordering from a specific retailer for Halo 4 because of extras in this case, is quite pointless. 343i has already stated that anything pre-order in the form of a bonus, would be available to everyone at some point during their Halo 4 service career. Nabbing it first just gets you earlier access which in this case...it's just armor/skins. Now if it were an exclusive map or something that isn't obtainable thru the marketplace nor standard unlocking...then that would be different.

 

But in any case, everyone gets an exclusive at many retailers. Gamestop just dips their hand in first or haggles a way to get the best cutting floor stuff. if they weren't around, someone else would be there to do it instead. As I said, just a publicity stunt or another industry moron who doesn't know his head from his ass, just yappin about **** he can't understand.

[Choot 'em]

Okay...my two cents, lol.

 

I understand a companies reasoning for next-gen consoles attempting to NOT play used games. They feel that used games cut into a companies profit when they don't get the sale of a new game.

 

My concern and point of view really has to do with HOW they will prevent a used game from loading on a next-gen console. The dilemma I see is that everyone is actually buying a used game. Once the package is open....it is used, lmao! So technically, assuming they could figure out how to get it to work properly, all next-gen consoles would NOT be able to play ANY game!!

 

Has this point come to anyone else's attention? It just doesn't make good business sense to me, lmao!

 

- an odd viewpoint from Choot

[Twinreaper]

I uave thought about that aspect Choot, and here is the likely outcome. Thebconsole providers will have a main.server on Live that collects xbox id numbers and eqch game has a specific product type key on the disc. When the game is.first inserted the server checks if the game is registered to any other concole ids. If it.isnt...the game is.then.registered to the corrosponding console. If it is already in use, the system.will get that info.from the server and lockout the play feature.

 

Of.coarse you would be able to.transfer games to new.conaoles you own via the "licence transfer" utility at xbox.com. More than likely that is how I.see it happening. Of.coarse that does raise the question of offline consoles. Not sure how.they would get aroundbthat but more than likely it would save the info internally and upload it firat connection.chance it gets.

[Zuko 'Zarhamee]

Whatever any company tries to do, I doubt anything could kill the used gaming industry. At best, people will find ways around the ban. At worst, people simply won't buy the console.

[Choot 'em]

I uave thought about that aspect Choot, and here is the likely outcome. Thebconsole providers will have a main.server on Live that collects xbox id numbers and eqch game has a specific product type key on the disc. When the game is.first inserted the server checks if the game is registered to any other concole ids. If it.isnt...the game is.then.registered to the corrosponding console. If it is already in use, the system.will get that info.from the server and lockout the play feature.

 

Of.coarse you would be able to.transfer games to new.conaoles you own via the "licence transfer" utility at xbox.com. More than likely that is how I.see it happening. Of.coarse that does raise the question of offline consoles. Not sure how.they would get aroundbthat but more than likely it would save the info internally and upload it firat connection.chance it gets.

Your explanation makes sense Twin. So if this would happen to go into effect, then the other consoles (purchased new) I have in my household would not be able to play a game (also purchased new) that has been registered with my console? This would not go very well with my kids, lol, as they play 90% of games I purchase (except Halo, they don't touch my Halo, lol).

 

This still does not make very good business sense as I believe the game industry would take a significant hit in sales, unless the price of a new title drops significantly.

 

Thanks for your input Twin!!

[LordReaper]

Glad to know this.

[Church]

I am quite happy about this. Kudos my torturer!

[SuperIntendant]

Gamestop and stores just like it should die already. gamestop is no saving grace to the gaming community. Video games were around a hell of a lot longer than Gamestop and besides, even if Gamestop went bye-bye, there are like a million other places to buy games and consoles used/new from. Amazon, new egg, Best Buy, walmart, K-Mart, Radio Shack, E-Bay.....just to name a few. Besides that, Microsoft is now heavily opening many new MS stores throughout the US. Needless to say, if I had to choose between a cut-throat rip-off pile of **** like Gamestop, or Microsoft Store...I'm going to the MS store.

This and 100% this, Gamestop is horrible. They are a relic of a passed age. They are nothing but a cancer on gaming.

 

The way they aggressively push used games is horrible for developers (in case you don't know, when you buy a used game the developer/ publisher doesn't get a cent from your purchase). Also their pricing is outrageous, let's use Modern Warfare 3 as an example, on amazon it costs $37 (http://www.amazon.com/gp/offer-listing/B00503E8S2/ref=sr_1_2_olp?ie=UTF8&qid=1348786862&sr=8-2&keywords=modern+warfare+3&condition=new), at gamestop it costs $60 (http://www.gamestop.com/ps3/games/call-of-duty-modern-warfare-3/91052) and it doesn't stop there. Seriously, stop buying from these people.

[Robius5991]

Oh my god I hope this isn't just a rumour. I'll be so happy if we can play all of our current games on the Next-Gen consoles. It would be such a drag to lose the ability to play all of, what we will soon be considering, "oldies".

[Wyzilla]

I hate gamestop. They don't need a damned 99% profit. I still can't believe how I'll take a newish game selling for sixty, and they give me five bucks or less.