14 DAY TRIAL // A recent rumor about the next Xbox-branded home console from Microsoft has suggested that the device might implement a way of stopping gamers from playing used games, but the biggest specialist video game retailer says that there is no technical way to implement such a feature.
Paul Rainer, the chief executive officer of GameStop, has told investors in his company during an earning call that, “We think it's unlikely that there would be that next-gen console because the model simply hasn't been proven that works.”
The CEO believes that despite the recent uproar from developers and publishers, used game sales are actually of great value for the industry as a whole.
Rainer added, “Remember that 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.”
GameStop and other supporters of the used game business model are saying that, if players are unable to sell their old games, they might not have the disposable cash required to pick up new releases, which might drag down profits for publishers and would lead to some development process getting cancelled.
Opponents of the secondary market say that its existence robs game creators of much-needed revenue and increases the focus on high-profile AAA titles.
The used games section of GameStop accounts for 27 percent of all the company’s revenue, but the high margins involved mean that 46% of all profits are linked to it.
Microsoft has not officially commented on any rumors about the next Xbox home console and has insisted that nothing will be announced during 2012.
GameStop recently posted worse-than-expected financial results for its fiscal fourth quarter, but claimed to be making inroads in its transition to a digital business model.