GameStop: next Xbox with anti used game tech "unlikely"

"This is the kind of news that gets people hyper-ventilating."

US shop GameStop has poured cold water on the rumour that the next Xbox will include anti-used game technology.

In January Kotaku reported that its sources said Microsoft's next home console would use Blu-ray discs and that Microsoft was planning on including technology that would somehow combat used games, though didn't provide specifics on exactly how that would work.

Today, in an investor call, GameStop executives said such a move is "unlikely".

"We think it's unlikely that there would be that next-gen console because the model simply hasn't been proven to work," Paul Raines, GameStop CEO, said. "Remember, used video games have a residual value. Remember GameStop generates $1.2 billion of trade credits around the world with our used game model. So, consider taking used games out of that, you'd have to find new ways to sell the games.

"And, our partners are good partners. The console companies have great relationships with us."

GameStop pointed out that the majority of the $1.2 billion of credit it generated went back into purchasing a video game. For many gamers, the shop said, this made buying games more affordable.

It also said its highest market position is with Microsoft and Xbox 360 software. The shop talks to the first party almost "every day".

"This is the kind of news that gets out in the industry and gets people worked up and hyper-ventilating and excited," Raines added.

"The pre-owned business is not a cannibalistic business. If you follow the popular conventional wisdom, you would think pre-owned is replacing new. The truth is, pre-owned is an opening price-point category. The average price is $18. A lot of it is old generation. What is is is a category for the customer who's maybe not ready to invest in a new game, but wants to get into the console business and console entertainment.

"What we've done is create a way for that new leading edge consumer to dispose of their old games, and that's what creates this great circle of life we talk about that so many try to imitate. That's how we see it."

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