Report: Microsoft Will Take Control of the Xbox One Used Games Market

May 24, 2013 -

We're not sure how much stock you should put into this news, but we're putting it out there anyway because Microsoft has been so dodgy on the topic since it announced the Xbox One.

According to retailers who spoke under the condition of anonymity to MCV and industry sources who spoke with Eurogamer, Microsoft will require retailers to sign an agreement and use a system for tracking games that are resold back to retailers. Retailers who have agreed to Microsoft's "terms and conditions" for selling Xbox One games will let Microsoft know that a game has been traded in and that game will then be wiped from the Xbox Live account it was associated with.

When you sell an Xbox One game, Microsoft and the publisher of the game will get a cut of the profits. While the retailer can sell the game for whatever price it likes, it would have to take into account that it now has to share whatever profits it makes with both Microsoft and the publisher. Microsoft will charge an activation fee, but both MCV and Eurogamer say that users will pay for that at retail and not when first using the game on their console. Both publications also say that Microsoft and publishers will share the money from the activation fee.

One site cited by both reports (ConsoleDeals.co.uk) puts the average price of used Xbox One game at £35 (around $52). This price tag seems incredibly high, and it is tough to substantiate because no one knows what Microsoft and publishers will get for a cut. Both reports put the retailer's cut of the profits at around ten percent, which seems incredibly low and not a figure a retailer like GameStop would settle for...

When asked about this news, Microsoft offered a generic reply on the matter:

"While there have been many potential scenarios discussed, we have only confirmed that we designed Xbox One to enable our customers to trade in and resell games at retail. Beyond that, we have not confirmed any specific scenarios. Another piece of clarification around playing games at a friend’s house – should you choose to play your game at your friend’s house, there is no fee to play that game while you are signed in to your profile."

If we had to speculate, we'd say that publishers would want at least $10 because that's the price they were charging for online passes. We'll have more on this rumor as it becomes available, but we won't likely know more about whether the scheme is real or not until E3 in June.

Sources: MCV and Eurogamer


Comments

Re: Report: Microsoft Will Take Control of the Xbox One Used ...

either they'll hafta drop full retail prices back down, or skip the used market alltogether.

either way this bodes ill for the new xbox.

Re: Report: Microsoft Will Take Control of the Xbox One Used ...

After E3 I'll know for sure if Xbox is dead to me, but I'm pretty close to calling it now.

Re: Report: Microsoft Will Take Control of the Xbox One Used ...

There won't be a used market.

Re: Report: Microsoft Will Take Control of the Xbox One Used ...

If this was even seriously discussed at Microsoft, it means that the suits over there are completely clueless. If this is really going to be the plan, then I reckon Microsoft are about to launch the most expensive failure in the company's history.

Re: Report: Microsoft Will Take Control of the Xbox One Used ...

<If this story is true>

So we can't count on selling a game to a friend or at a garage sale? Do you need a third party retailer to be an arbiter to all of your game transactions? This is truly ridiculous. Expect to see no listings for used Xbox One games on eBay.

At my work, people sometimes bring in DVDs, Blu-rays, books or games and sit them in the tea room with a price tag to potentially offload used goods to workmates who might be interested. Is this practise now also going to be dead for Xbox games?

People often make analogies with other products, but you really have to wonder what would happen if they did this to printed books, or anything else for that matter.

</If this story is true>

Re: Report: Microsoft Will Take Control of the Xbox One Used ...

Never mind selling the game. Gone are the days of simply loaning your games to your friends and family on a temporary basis, something I've done a lot of in my gaming history.

Re: Report: Microsoft Will Take Control of the Xbox One Used ...

So basically, if this is true, Microsoft is trying to illegally prevent consumers from selling their used games to anybody except a retailer authorized by Microsoft.

Kinda hoping this one isn't true, but it wouldn't surprise me in the slightest.

Re: Report: Microsoft Will Take Control of the Xbox One Used ...

You know how EULAs contain a lot of sophistry and bullshit about how you aren't buying a product, you're just getting a license? That's what makes this legal.

Re: Report: Microsoft Will Take Control of the Xbox One Used ...

"Let's scrub the game from the user's account when they trade it in.  What could possibly go wrong?" is how I'm taking the plans for the used game thing for the XBone

Re: Report: Microsoft Will Take Control of the Xbox One Used ...

Yeah, it was bad enough when some idiot kept compromising my account.

Now I have to worry a similar idiot is going to sell off my games?  Either for profit or just to be a dick?  And how are we supposed to explain that to microsoft?  "No it wasn't me!  It was totally teh haxors!"

Compromising accounts just went from a dick move to a lucrative buisness.  I wonder what Microsoft's plan is.

Re: Report: Microsoft Will Take Control of the Xbox One Used ...

Never even thought of that dimension of this issue.  It's terrifying but I think you're right.  Now all of a sudden the accounts of hardcore gamers are delicious targets for all the game licenses that could be transferred off the account.   

Re: Report: Microsoft Will Take Control of the Xbox One Used ...

Well, that and pebkac errors will end up either removing the wrong game off of the account or YOUR ENTIRE GAME LIBRARY OFF OF YOUR ACCOUNT.  PEBKAC: Problem Exists Between Keyboard And Chair

 
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