GameStop: 60 percent of gamers would not buy console that blocks used games

Executive Rob Lloyd says majority of consumers would not be interested in a future console that prohibits secondhand titles.

If Microsoft or Sony--or both--decide to block used games with their next-generation platforms, the majority of consumers would not buy them. That's according to GameStop chief financial officer Rob Lloyd, who defended used games today during a presentation at the Goldman Sachs Technology and Internet Conference this afternoon.

"It's really only about 4 percent of our used game sales are games that were games released in the last 60 days," Lloyd said. "So it does not have a big impact on the sale of new product. So that's why publishers understand how important the preowned business is to them. Sony has said publicly that they don't intend to block used games in their next console. Microsoft has refused to or has not commented on the rumors that have hit the marketplace."

Lloyd further noted that GameStop has conducted internal research on anticipated consumer buying behavior and shared this information with platform holders. This research has shown consumers want control over the games they purchase, he said.

"Consumers want the ability to play preowned games; they want portability in their games; they want to play physical games," he said. "And to not have those things would be a substantial reason for them to not purchase a new console."

Asked for a specific percentage, Lloyd said, "I think it's approximately 60 percent of the customers who have said they wouldn't buy a new console if it didn't play preowned games."

"We'll be able to sell the new consoles that come from Microsoft and Sony regardless of what features they have or what they do or don't allow."

Even if next-gen platforms from Microsoft and Sony do block used games, Lloyd said GameStop will still be able to sell these consoles and adapt appropriately.

"We'll be able to sell the new consoles that come from Microsoft and Sony regardless of what features they have or what they do or don't allow," he said. "We'll have leading market share on the sale of those consoles. We'll adapt to what it does to the preowned business. And one of the ways we'll do that is through a continued healthy preowned business for today's generation of consoles."

If the majority of gamers would not be interested in a next-gen console that blocks used games, why has the rumor floated around for so long? Lloyd said the preowned business is a tough one to crack; both sides have compelling arguments, he argued.

"There's two constituencies that the publishers and the console-makers…have to consider. One is the retailer like GameStop that is moving their product through the chain. The second are the development firms that actually develop the games. Developers have historically not liked the preowned game business because they don't participate in the revenue streams."

"The publishers really get caught in the middle," he added. "[The publisher] understands that, but also understands the importance of the preowned game business to the overcall ecosystem of the video game business. And so, I think that as the console makers balance those needs, they consider, 'Is this an appropriate thing to do? Would we make more money by doing this in the future?' I think what customers have told them at this point is they view it as a very unfriendly thing to do."

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739 comments
OuroborosChoked
OuroborosChoked

That's just 60% of just GameStop's customers.  Think about how many people refuse to shop at GameStop, but still buy used... and we're talking HUGE market share being thrown away over a territorial pissing match.

Publishers: if you force this issue, you will lose... and lose big time...

simomate
simomate

Personally, I would buy a really good game from a really good developer new, not preowned to support them. If the game is great, I obviously also want it to sell well so the developers will make sequels or more games. But truth be told, games are quite pricey, particularly in Australia. I put a LOT of money into my gaming hobby and sometimes buying preowned is the only option. 

jerryr84057
jerryr84057

I think the console makers should  put their time and money into making their consoles so people cant cheat using things like the auto finder, auto  head shot, lag switch and many others. We pay $200.00 to $400.00 foe a new console then $70.00 for a new game we all should play on a level playing field. The people that know code hack these machines and games and use these cheats like there perks. Funny we would even be talking about used games when this is not a problem at all. 

HydeHound
HydeHound

All the games everybody bought would be frisbees the moment their tied-in consoles need new hard-drives or a replacement. 

"Sorry Jimmy, you're not playing Project Gotham Racing 5. My XBOX was the last one that still had a copy tied to it but, the disk got scratched, I no longer have my XBL account, I stopped paying for XBL/Microsoft Stopped supporting home consoles, Bizarre Creations (developer) no longer exists, nobody owns the rights anymore, that game stopped being sold at major retailers a few years ago, my hard-drive needed replacing, and my XBOX had water spilled on it. Looks like yet another game has been lost to history.  

Halo 8? I don't have it, you'll have to borrow the game AND the XBOX from my neighbor (you might need his internet connection too.) "

BlownRanger
BlownRanger

Shouldn't the big question here be why these games end up being resold to begin with?  These games aren't being given to places like gamestop for less than half price by satisfied customers. These games are being sold used because the person who is reselling it didn't like the game enough to keep it anyway and most likely doesn't want to support the developers of a shitty game.  All these worries about supporting the devs of good games are sound except that if it's a good game, it wouldn't be resold, it would be on that gamer's shelf waiting to be played again.  By taking away the used games we are actually supporting the developers with the best marketing staffs, not the ones who make the best games.

Death_Masta187
Death_Masta187

What is a gamestop? is that like a record player?

Unfallen_Satan
Unfallen_Satan

I don't care much for used games, but I wholeheartedly support GameStop on this. The implication of used game rights mean much more to me than individual games.

Jcleveger
Jcleveger

I can't believe Gamestop says there sales don't effect new game sales. Then why are the developers complaining about it. I'm sure Gamestop is making a ton of money. As for the new gen system, I'm not wasting my money, let the rich and stupid do it. Theres always flaws with new release systems. After 2 yrs a new slim system comes out with more GB, and 1 yr later a new slimmer and way more GB upgrade. PS3 for life thank you. 

spammehardo
spammehardo

I highly doubt that. The mainstream gamers are a very gullible bunch.

nonfanboygamer1
nonfanboygamer1

They want to block used games, go digital, and charge out the a@@! It's all about the money, not making gamers happy.

IrishConnor94
IrishConnor94

Sony and Microsoft need to realize that blocking used games isn't the way forward. Lots of gamers don't want to pay $60 for a new game, and lots of people discover games years after it's release, when it is only available used. 

They have the technology to block used games but I think that they should just use it as a bargaining chip to make a deal with Gamestop to give developers a cut of used games sales.

j-bldes
j-bldes

60% of GameStop customers would stop shopping at GameStop I'd say. Customer loyalty is a lot stronger, especially with the amount of people buying every COD game that comes out. People like familiarity,  that's why there is a lack of innovation in the game industry. And if people can't buy used games it doesn't mean that they will not buy the new console. If you can afford the console then statistically you can afford the games you want to play when they come out. If used games were so important then millions of copies of new games wouldn't be sold each year. The amount of people who buy used games is much smaller than those who purchase new games. 

Lets look at it the way it is now. A popular game, lets say COD5 comes out 2 weeks ago. GameStop will sell a used version of the game for about 54.99, while retail is 59.99 and possibly gave the previous owner of that game maybe 35-45 dollars in store credit. They will profit more from selling used games than selling new games, which is the real reason this article was published.

Don't buy into BS. people. Whether or not PS4 or XBOX 720 allows used games won't change the fact that people who buy new games each year will keep doing so. And if your one of those people who says "can't play used games pfff no thnx" then you are in a very small minority and will complain for a while but eventually buy into it if you had the money to buy it.

ztype85
ztype85

According to Gamestop approximately 40% of gamers will suddenly stop playing games when this occurs. Yeah right.

AlexFili
AlexFili

I don't like the idea of not being able to resell a game, especially if the player finds out that game isn't to their particular taste.

victorlamy
victorlamy

can you imagine if games like homefront/brink were blocked because they're used?  you just got ripped off and can't even ebay it. 


if a game dies and the only option i have is buying new then...yea no

 

bigtimemad
bigtimemad

If im going to buy a new game and end it within a week i am not going to go back to gamestop and trade it in and get $25 for it so they can sell it for $54.99. Im going to tell co-workers and friends im selling it and if nobody wants it im putting it on craigslist for $40 at least..

gradyb
gradyb

Really? I thought only assholes bought used games.I never buy them if someones going to get money for a game i'd rather it be the people who made it.and why  worry about 5 dallors thats all u save.go to gamestop its 59.99 new 54.99 used 

DarthLeon12
DarthLeon12

I think it's hilarious that video game publishers can honestly claim they deserve a piece of the used game market pie. One thing to remember is that every used game sold was originally new at one point or another. Besides, we'd never put up with this crap from any other industry. Can you imagine if car companies tried to pull this shit? Ford had no right to any of the money I make from selling my used truck. I can't really see why the video game industry should get special treatment. Once I buy a game new, it is mine, not the publishers. Only I deserve to profit from whatever I decide to do with that game.

residude
residude

Mate, it DOES happen, go into your local Gamestop, go look at used copies of BLOPS2 for example

DreamsofGreen
DreamsofGreen

"We'll be able to sell the new consoles that come from Microsoft and Sony regardless of what features they have or what they do or don't allow"

I disagree sir.

MooseMcDowell
MooseMcDowell

Let's face it...the game manufacturers see Gamestop as an obstacle to be removed, little by little if not all at once.  They need them for this generation's games, so they won't say anything rash to stop sales.

With that said...I certainly don't want used games to be blocked, but I can't see us changing the course.  Sho ga nai.



RPGFreak90
RPGFreak90

Only 60%? I figured it would be more than that! If either Sony or Microsoft decide to go ahead with this decision, I'm not buying their consoles. I'll go with the Wii U if I have to!

emptycow
emptycow

" Microsoft or Sony--or both--decide to block used games with their next-generation platforms, the majority of consumers would not buy them. That's according to GAMESTOP  chief financial officer Rob Lloyd,"  HE WORKS FOR GAMESTOP the store thats makes almost all its money on used game sales    lmfao 

The_Dragon_Born
The_Dragon_Born

If Microsoft prevents used sales then Sony (or maybe Nintendo with some smart moves) will win the next gen war. I'll switch to the company that still sales real games. Nintendo or Sony. And this gen my fav system was 360.

Sampawende
Sampawende

Ha ha ha ha ! :'-D

I will, and the I'll crack it ;-D

muffin200
muffin200

60% of statics are made up on the spot.

abnergoinbig
abnergoinbig

lol. Of course Gamestop's going to say this. They're afraid of losing money. Consoles blocking used games will fix itself. I don't see it happening this coming gen because I highly doubt neither Sony nor Microsoft want to be those people to pull the trigger and be known as the people who started blocking used games. Used games will become a thing of the past sooner or later but no longer than the gen after next.

dzgword316
dzgword316

they won't block used games, developers are going to do what they for battlefield 3 and mass effect 3

block certain parts of the game unless you have a dlc code which come with a new copy of the game

yman173
yman173

I know others are saying its time for a new console and all, but for me the PS3 & 360 are still amazing systems. The good part of new consoles coming out are that the used games for this gen are gonna get dirt cheap. So block or no block, I just don't see a compelling reason to get a new system. I'll think about it when they get to the 2nd versions of these new consoles. By then, I'll probably have exhausted the 1000+ games I'm still holding out for in this gen. Yep, I'm a cheapskate...lol

BenderUnit22
BenderUnit22

So, what would those 60% of players do? Not play video games anymore? Because PC versions will also be likely tied to Steam, Origin, UPlay or whatever. I guess they could hope for a Wii U port at that point.

If you like video games, buy the damn games new, people. Support the companies that work their asses off to make these games.

Mingimehu
Mingimehu

Hell i won't even buy it if it had the always online thing. Seeing as i only play offline single player games, why the hell do i need to be connected to the internet. U mean i can't play my dam game just because my internet is fucking up. that would be totally retarded.

chuckratm1
chuckratm1

Wrong, there is no way 60% of gamers would not get next gen consoles because of this, and even more to the point, the console makers, developers, and publishers don't care about the gamers who buy most of their games used because they don't make money from them anyway. 

RoadStar1602
RoadStar1602

@BuldozerX People hate them for no reason except that they are top dog. Some people just like to hate on something or someone that is successful. I've never had any gripes with Gamestop.

Metallicwolf29
Metallicwolf29

@AlexFili how about not letting a friend or family member borrow a game or play it at their house during a holiday or special event? Gaming is about to become total trash

arcangelgold
arcangelgold

@gradyb uh well someone did already pay for the game even if you bought it new and let's not forget they are being sold at about 4 times their cost. So really buying a used game has no effect on the companies sales.

frostdawn99
frostdawn99

@gradyb Read the post from mrboone01 above you to get the perspective that alludes you. It's not about saving $5 for a new game, but waiting it out and getting a game at a good discount. Used games (and game rentals) also serve as a buffer for games that are complete shit. Aliens Colonial Marines is a great recent example of that. Publisher rushes out a half-assed game and charges full price for it. If consoles go the route of not allowing used games, how do you think that will affect not only resell value of games, but the return policy on games? I'm almost willing to bet that some retailers flat out won't accept games once they have been opened since they could have been played and would be deemed worthless. If the secondhand game blocking idea takes off, gamers are gonna get screwwed.

ztype85
ztype85

@DarthLeon12 Does that include ripping it and distributing it over the internet?

coatess
coatess

@RPGFreak90 

Is that s threat lol?

I have a Wii U, TWO 360's - one modded and one not modded, TWO PS3's, Ipad 2, Vita, 3DS and a I5 pc.

I will also have a 720 and a ps4.

Why  not just buy them all? 

 

emptycow
emptycow

@yman173 you must have just got your ps3 or xbxo 360 i got my system more then 7 years ago i am ready for the next gen

Treadstone86
Treadstone86

@BenderUnit22 They could *gasp* continue playing this generation's games.  Also, steam offers games at far less than $60, particularly when they have sales.  People act like there is no competition for Playstation or Xbox, when there clearly is.

Support the companies when they offer a fair price.  $60 is not a fair price.

DarthLeon12
DarthLeon12

@ztype85 @DarthLeon12  

If by ripping it, you mean buying a digital copy online, then no, that's not quite the same. If you're talking about piracy, then obviously not. I'm distinctly talking about sales on dvds and blu-rays. Digital content is a whole other animal to deal with. Buying online is far more like purchasing the right to play a game rather than the game itself.

Joshua_CF
Joshua_CF

@coatess because not everyone can buy two of every fucking console! instead of buying two xboxes, get a i7 pc and an i pad 3

BlownRanger
BlownRanger

@Treadstone86 @BenderUnit22  Agreed, not to mention brand new games on the PC are $10 less in general than the same games on the system.  Oh, and often with the capabilities of better graphics and homemade mods.  

Treadstone86
Treadstone86

@fredyellowone @chuckratm1 Gotta love binary thinking.  Some people buy some of their games used.  Other people buy new and then sell so they can buy more games new.  If they lose either of those consumers, they lose money.

jagcivtec
jagcivtec

@BlownRangerVery true.  The used game market is necessary for new games to sell.  Everybody sells their games to get new ones.

Treadstone86
Treadstone86

@BlownRanger @fredyellowone @Treadstone86 @chuckratm1 This.  Also, when I said that a portion of consumers buy SOME of their games used, I was implying that they buy SOME of their games new as well.  I happen to be one of those types of consumers.  Video game companies have made money off of me, even though I do buy some of my games used.  This is why I called the posts I was responding to "binary thinking".  Those posts separated consumers into "used game" and "new game" purchasers.  In reality, very few people buy all used games or all new games.

BlownRanger
BlownRanger

@fredyellowone @Treadstone86 @chuckratm1 I'm not sure you're understanding what he is saying.  When gamer A buys a game new and is done with it.  Gamer A wants to buy another new game but is coming up short on cash.  Gamer A sells his game to Gamer B who likes used games.  Now Gamer A has enough money to buy another new game and give more money to another dev.