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GamStop Shares Tumble On Xbox One Used Game Rumors

Unfortunately for GameStop, there may have been no reason for their shares to tumble.

GameStop's stock price concluded the week down a whopping 19%, apparently based on the market's reaction to the theory that Xbox One would charge a one-time fee to play used games.

This resulted in a report from the UK saying that GameStop's margins in the pre-owned industry would be significantly affected, as no doubt they would be. However, Microsoft soon issued a quick clarification:

"The ability to trade in and resell games is important to gamers and to Xbox. Xbox One is designed to support the trade in and resale of games. Reports about our policies for trade in and resale are inaccurate and incomplete. We will disclose more information in the near future."

GameStop stock dropped 11% on Friday, down $3.90/share to only $32.11. But was this really warranted? According to the latest report from Polygon, gamers will not have to pay a fee to reactivate a used game, but there will be "regular online spot checks to verify the authenticity of games being played." But wait, there's more to this-

"While an internet connection will be required for the console, the company is also experimenting with special exemption codes that could be given to select people in very particular, internet-free situations, like active-duty soldiers serving in war zones."

Wait, so unless the system is hooked up to the Internet, we won't be able to play a pre-owned game because it can't be "spot-checked?" To be perfectly honest, I'm not sure this is better. These mandates and rules and restrictions are just wearing.

Tags: gamestop, gamestop stock, gamestop share price, xbox one

5/24/2013 9:46:35 PM Ben Dutka

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Comments (19 posts)

Akuma07
Friday, May 24, 2013 @ 10:20:50 PM
Reply

I really hate it how they are treating this whole thing as if every game you buy is basically on loan to you. They decide if and when you can play it.

Agree with this comment 4 up, 1 down Disagree with this comment

WorldEndsWithMe
Friday, May 24, 2013 @ 10:29:40 PM

Makes ya feel good as a loyal consumer doesn't it?

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WorldEndsWithMe
Friday, May 24, 2013 @ 10:29:19 PM
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Full on DRM. Statements like these aren't actually denials if pay attention. The reality is they don't quite know what they are going to do yet because of the backlash so they are trying to muddy the waters for when the restrictive features have been fully decided on, which they clearly weren't in time for the reveal. It's a PR nightmare for sure.

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Kryten1029a
Friday, May 24, 2013 @ 10:54:41 PM

It didn't sound good coming so soon after EA announced that it was dropping online passes, did it?

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Apocrita
Saturday, May 25, 2013 @ 8:45:59 AM

This comes across like a "shotgun" approach to dealing with all possible unknowns. Just point, shoot and hope you effectively hit something. If not, jack in another shell and shoot again. This whole campaign comes across as very amateurish, too broad and unprofessional. It's hard to believe that company as weathered as MS would resort to such a reactionary scheme. They are NOT engendering any confidence in their potential consumers (this will not include me this round).

If they were honest, decisive and clear from the start, much of the resultant confusion and craziness we've seen, would've been avoided by media and fans alike. What's transpired can only hurt them and deservedly so.

If we were a fly on the wall, back in the strategy meetings;
Marketing peon one, "So, just bend over, grab a handful and throw it at the wall. What sticks, works!"

Marketing peon two, "or, just say something---anything that sounds cool, if the unwashed masses react wrongly, say something else cool..."

Marketing Director, "Brilliant! I love it, we can throw million$ at this. It can't possibly backfire!"

Last edited by Apocrita on 5/25/2013 8:47:07 AM

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Kryten1029a
Friday, May 24, 2013 @ 10:32:45 PM
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I just read the article on Polygon and it clears up a lot of things but why did it take them three days to clarify this issue? They've stirred up a great deal of controversy when they could have just come out and said it after the reveal. In fact, they should have nailed down their talking points before they went on stage, because they had spokespeople contradicting each other. Phil Harrison had even told Kotaku that second-hand users would pay full price to activate their copies. Microsoft walked that back but by that point the damage was done.
I feel a lot better about this, but it still seems to leave a lot of people on the outside looking in. If you lose your internet connection for several days then you'll be unable to play because the system can't phone home to authenticate you. If you live in rural America and can't get broadband access then you've got similar problems. It's gratifying to know that soldiers deployed in remote areas could still play games to unwind but millions of others are just written off by these measures.
I understand why publishers feel that they have to do something to counter piracy but it makes me wistful for the days when the internet and games didn't intersect and pirates were just an enemy type that you'd have to deal with on your way turn in a quest or side mission.

Last edited by Kryten1029a on 5/24/2013 10:34:34 PM

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Comic Shaman
Friday, May 24, 2013 @ 11:10:20 PM
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To paraphrase the princess:

"The more you tighten your grip, the more gamers will slip through your fingers."

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Apocrita
Saturday, May 25, 2013 @ 8:48:58 AM

Perfect summation!

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kraygen
Friday, May 24, 2013 @ 11:14:00 PM
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I doubt MS will give up on the idea of charging a used game activation fee, but how is that really fair when you consider most of games sold for xbox will be third party games.
MS will profit off games they didn't have anything to do with, sounds like they just want to steal some more money away from the devs.

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Kryten1029a
Friday, May 24, 2013 @ 11:17:17 PM

Developers don't seem to make much of a distinction between used games and piracy. If they could have a source of guaranteed revenue that they didn't have before then they would happily pay Microsoft a finders fee as it were.

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WorldEndsWithMe
Friday, May 24, 2013 @ 11:45:03 PM

That's presupposing MS would give one red cent to the developers once the fee is collected.

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Kryten1029a
Saturday, May 25, 2013 @ 12:08:44 AM

They already collect a 30% rake-off on Marketplace purchases so this would be a logical extension. If they tell EA and Ubisoft, "we'll collect $10 and give you $7" then they wouldn't have to work too hard to convince them. Puiblishers don't get anything for used games now and this is practically free money. Hostile to consumers and ultimately counter-productive but free money.

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WorldEndsWithMe
Saturday, May 25, 2013 @ 1:34:32 PM

what if it's a one-time fee to access all used games? Then who gets that money?

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Kryten1029a
Saturday, May 25, 2013 @ 2:35:47 PM

With a one-time fee there'd have to be an agreement in place to divvy up the proceeds. I'd see it working something like Netflix does for movies and TV. They don't know in advance who will watch what, so they've negotiated with the studios and producers ahead of time. It would probably be collected on individual titles at point-of-sale, though. When you purchased the used game, it would go to the respective publisher and platform holder.

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Buckeyestar
Friday, May 24, 2013 @ 11:55:58 PM
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It doesn't sound like Microsoft cleared anything up. They didn't deny a thing, they just said its inaccurate and incomplete. Until they fully explain themselves, they're still in a world of hurt.

Agree with this comment 3 up, 1 down Disagree with this comment

Crabba
Tuesday, May 28, 2013 @ 9:00:39 PM

exactly... it's inaccurate and incomplete, but we're not actually going to tell you what IS accurate...

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bigrailer19
Saturday, May 25, 2013 @ 1:45:11 AM
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This is what MS does and have been doing with Live. This is just another way to corner their consumers, and get "all" of them paying for Live. I cant believe the amount of people that pay for it anyways, I almost feel bad for those people. But then again people for a lot of things I dont get.

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Temjin001
Saturday, May 25, 2013 @ 5:02:15 PM
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Heh what a mess.
No wonder ea ditched their online passes.

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Darwin1967
Sunday, May 26, 2013 @ 4:11:30 PM
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wow....I would have said the one time fee sounds way better than 'spot checks'. At least with a fee you know you are going to have access and just be able to play, kind of like when I buy a Upass from Ubisoft. The term "spot check" just seems like I could be playing a game, having a blast, only to get some xbone cop popping up demanding an authentication code and without it will either temp ban or at the very least end my gaming session and restrict that game from playing on my system. This just seems so out there and unclear that as a consumer I am incredibly wary of the system that seems more Big Brother than game system. PR wise they are not playing this well and by allowing speculation to run rampant, rather than just coming clean on how you plan to disrupt the used game business, is and unfair. My hope is that Sony is paying serious close attention to the outrage, confusion and overall dissatisfaction consumers seem to be responding to the Xbone...hopefully they will take that knowledge and use to their and our favor.

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