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The End of GameStop?

The End of GameStop?
February 07
18:58 2013

Just weeks ago, the announcement that the new Xbox will recognize and block used games left gaming fans horrified.

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New rumors about the new Xbox blocking used games

REDMOND, USA — According to sources, the new Xbox will be forced to stay online which, combined with activation codes, will make sure that costumers will not be able to play used games purchased from someone else.

The background on this decision is that game publishers only make a profit with new, purchased games. Producers like EA, Activison, and so on will not see one penny from sold used games such as the ones offered by GameStop.

With the PS3 and Xbox 360, companies tried an experiment with online codes that could only be used once, and allowed the owner to play multiplayer online. With a used game, players needed to pay about 10 dollars to reactivate the online mode.

With this function, Microsoft could stop the use of used games on the new Xbox console, which will ultimately bring the game publishers more money. Money is exactly what they need these days, as production costs rise and sales decline.

However, this is rather bad news for GameStop, the company who makes close to half its profit from used games. The company’s stock fell by 6 percent after the news about the new Xbox blocking used games appeared on the Internet.

A spokesman for GameStop had no immediate comment on the matter.

GameStop, based in Grapevine, Texas, derived 27 percent of its revenue from used video games in 2012, according to data compiled by Bloomberg. About 46 percent of gross profit was derived from those products. In its most recently reported quarter, used game sales constituted 28 percent of revenues and 43 percent of profits.

According to current reports, GameStop stock fell by 6.1 percent to US$25.20, while Microsoft stock was unaffected by the rumors,  remaining at US$27.34 from the day before.

In any case, the rumors about the used games suspension are likely to turn out to be nothing but hot air. Currently we are hearing that the alleged insider from Redmond already admitted that the whole thing was a joke. However, this is not yet certain.

If Microsoft and Sony include a suspension for used games, the future of GameStop will be shaky indeed. The gaming industry, however, will find it easier to produce games in the future.

Here is what some people are saying about the rumors:


CMPuma ?@CM_Puma

Microsoft is screwing themselves! – GameStop Falls After Report Xbox Will Block Used Games http://bloom.bg/XoAKP8  via

USGamer ?@usgamernet

The beginning of the end of Gamestop, or nothing to worry about?

Welp there goes Gamestop‘s business model

Chris Cruise ?@ChrisCruise

Microsoft hates you. Word is the next XBox will NOT be able to play pre-owned games. Looks like Gamestop will be going out of business…

So basically it’s like Xbox 720 just put an atomic bomb in every Gamestop and blew them up. (@YouTube ?a” href=”http://t.co/ZteyjD9H” target=”_blank”>?a )

? MEGA POWERS ? ?@PaulNeeb88

RIP Gamestop. RT @jose3030: “Games for the new Xbox 720 will ship with activation codes and “have no value beyond the initial user.”

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