Customers will buy new consoles and trade in older ones

Mar 7, 2013 08:01 GMT  ·  By

Games industry analyst Michael Pachter has revealed that, if both Sony and Microsoft choose to release their next generation consoles, the PlayStation 4 and Xbox 720, this year, retailers like GameStop will have the most to win.

Sony fired the first shot in the next-generation console war by unveiling the PlayStation 4 last month and confirming that the new device will be released in at least one region at the end of 2013.

Microsoft is expected to present the so-called Xbox 720 in the near future, either at an event in April or during E3 2013 in June.

According to analyst Michael Pachter, Microsoft is going to push hard to release the Xbox 720 alongside the PS4 this year.

"We expect Microsoft to announce its console in the next few months, and at the latest at the E3 Expo in mid-June," Pachter told GamesIndustry.

"Although we think that Microsoft aspires to position the next Xbox as the entertainment hub in the living room, suggesting a possible launch delay, we think that the company is intent upon gaining further market share next cycle. As such, we think that the company intends to launch alongside the PS4, and we expect gamers to have two next-generation consoles to choose from this fall."

While gamers will certainly benefit from the release of the two consoles, the biggest winner will be large retailer GameStop, as not only will the company sell lots of units but customers will be eager to trade in older consoles in exchange for cash to spend on new devices.

"The biggest beneficiary of all this is GameStop," he continued. "The company thrives in a product refresh cycle, and its used business typically spikes, as many gamers trade in old systems and software to generate currency so that they can buy new systems."

In regards to the supposed block against used games, Pachter believes Microsoft won't implement such a system, seeing as how Sony has specifically stated that it planned to allow used games.