Monolithic US used game retailer Gamestop has seen a sharp drop in stock prices, culminating with a massive 19% drop. 11 points of that were lost just today as Microsoft, after announcing a new used game solution that would circumvent much of a traditional retailer’s control over used game sales, issued further clarifications as to what their model would entail.
“The ability to trade in and resell games is important to gamers and to Xbox,” says a Microsoft-issued statement. “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.”
The Impact on Gamestop
Gamestop has long been a dominant player in the used game market, with a business model heavily reliant on the buying and selling of pre-owned games. The announcement from Microsoft has sent shockwaves through the industry, as it suggests a significant shift in how used games will be handled in the future. This has understandably caused concern among investors, leading to the sharp decline in Gamestop’s stock prices.
The potential for a new system that bypasses traditional retailers like Gamestop could drastically alter the landscape of the used game market. If gamers can trade in and resell games directly through platforms like Xbox, the need for physical stores could diminish, leading to a decrease in foot traffic and sales for Gamestop. This is a significant development, as the used game market has been a substantial revenue stream for the retailer.
Microsoft’s New Model
Microsoft’s new model for used games is still shrouded in some mystery, but the company’s statements indicate a move towards a more digital-centric approach. This could involve digital licenses that can be transferred between users, or a system where games are tied to user accounts rather than physical discs. Such a model would offer more convenience for gamers, allowing them to trade and resell games without the need to visit a physical store.
However, this shift also raises questions about the future of physical game media. While digital distribution has been growing in popularity, many gamers still prefer physical copies of games for various reasons, including the ability to lend them to friends or resell them. Microsoft’s new approach will need to balance these preferences to avoid alienating a significant portion of their customer base.
Additionally, the move towards a digital-centric model could have broader implications for the gaming industry as a whole. It could lead to changes in how games are priced, with potential impacts on both new and used game sales. Developers and publishers may also need to adapt their strategies to accommodate this new system, potentially leading to new business models and revenue streams.
The recent developments from Microsoft have introduced a level of uncertainty into the used game market, with significant potential impacts for retailers like Gamestop. As the industry continues to evolve, it will be crucial for all stakeholders to stay informed and adapt to these changes. The coming months will likely bring more clarity on Microsoft’s new model and its implications, and it will be interesting to see how the market responds.
Source Joystiq
Latest Geeky Gadgets Deals
Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.
