GameStop shares rise after Xbox One reports

[UPDATE] Shares close for the day up more than 6 percent.

by

[UPDATE] GameStop shares closed today up 6.15 percent (+2.13) to $36.75

The original story follows below

Microsoft's recent announcement that decisions about secondhand Xbox One games will be left up to publishers has not hurt GameStop's share value. Instead, the opposite has proven true.

In morning trading, GameStop shares are up more than 7 percent to $37.10 at press time.

Only one publisher--Fallout studio Bethesda--has responded to GameSpot's request for comment regarding whether or not they will allow used Xbox One games or impose an activation fee.

"We haven't had time to fully understand and evaluate their policy," a company representative said.

Wedbush Securities analyst Michael Pachter released a note on Microsoft's recently announced Xbox One policy today, stating he does not believe publishers will block used games or impose activation fees.

"In our view, any publisher that disables used gaming risks a backlash or boycott of its titles by gamers, negatively impacting sales," he said.

Describing potential activation fees, Pachter said these are similarly unlikely.

"They would face a huge backlash" he said. "They wanted manufacturers to do the dirty work, and both refused."

According to Pachter, GameStop stands to be hurt the most not from the impact of potential used games restrictions, but the recent revelation that Xbox One games will be available digitally on day-one.

"We believe that this disclosure has the greatest potential to negatively impact GameStop’s business, as GameStop is unlikely to participate directly in these digital sales," he said.

At the same time, though, Pachter said it is in the best interests of Microsoft and publishers to integrate GameStop's PowerUp Rewards currency into digital transactions in some manner, thus giving the retailer a cut.

The Xbox One launches later this year. For more, check out GameSpot's news hub dedicated to the next-generation platform.

Discussion

444 comments
MrTechnoide
MrTechnoide

Xbox pulls out all the stops to move from first place in to obscurity! No Used Games or Game Rentals on XB1? Thanks for the painfully ass raping your supporters and fans!

brycekoenig19
brycekoenig19

you have disgraced every gamer that has bad or no internet , YOU HAVE NO HONOR !!!!! never ever would me and my mates go to sony but now we all are for sure , thanks for making this the worst consol out you idiots #xboxone 

quakebox
quakebox

I think both systems are great but I liked the Xbox One more, and that's for exclusives, used games will work 

UziKill
UziKill

I don't know why people are bashing on MS for used games.  The PS4 will also have the ability to block used games. Neither MS or Sony will or want to take control of this. They designed the technology to block used games yes, but at the request of game publishers and they don't want to manage the use of it. The decisions of blocking them will be left to each game publishers. The ones deciding to block their second hand games should and will be bashed. If you remember, we read lots of comments from publishers wanting to block used games in the last months. Gamers should leave MS and Sony out of this.

grbolivar
grbolivar

Don't worry GameStop, nobody will purchase the CrapBox BTW...

LexsisHexin
LexsisHexin

Game publishers should be getting a kickback from used game sells.

BUT

Putting it on the gamer will only ensure that the game intended will lose gradual players until only core game fans are left making matches and games harder to get into. Used games benefits the person who never sold the game more Imo.


HOW TO DO IT

XBOX and game publishers should take a cut from gamestops used game sell. Like government takes taxes from Amazon. And yes gamestop could just raise the price of the game to make up for it but it wont help them. Because no one would buy it. Game stop would rather make $20 from a game then nothing.

GREAT-MAZINGER
GREAT-MAZINGER

I do not trust Microsoft anymore.. They have the means to block games at any time.
 

  

irfronaldinho
irfronaldinho

Now my Question is simple ....Microsoft Confirmed

24 hours online is mandatory and No used games !!!

so who wanna buy it ???

tionmedon
tionmedon

i am a fan of both consoles and i am getting both on day 1, I like the exclusives on each but most my gaming is on my awesome PC,I am an elitist multiplates will run faster look better on my PC........period...........

kaim86
kaim86

Gamestop digital selling trading app via xb1 anyone?

buffaloblitz85
buffaloblitz85

Expect Activision and EA to definitely block used games, not that it really matters. both publishers produce 90% crap anyhow

JamDev
JamDev

Article fails to mention that their shares plummeted by 19% after the initial Xbox One reveal. This is a slight recovery but still way down on where they were before the DRM measures were announced.

megamatics
megamatics

Used games are what allow a chain store like Gamestop to stay alive and be so wide spread. There are a lot of areas in the United States that would have no gamestores at all without Gamestop. While it may be hard to approve of the condition they present used games, I can agree that they have brought Video Games to a lot of  people who would of normally had to travel miles to the nearest store. If Publishers let them make more money per new sale then I could see Used Games as being an issue, but when they barely make 25% on each sale it's really the only option to turning a significant profit.

The Xbox One will be on it's own with it's instances of DRM. They've made a profound mistake in going after used games.

jdeamaral
jdeamaral

When reading everything about Xbox One, it seems they are intending to get revenue from places like Game Stop, with their DRM idea. Think about it. For 8 years the "Used Game" money hasn't gone to them or publishers. Is it their right to try and get? I wont debate that here because when reading articles, I'm not sure if I am purchasing games anymore or licenses. Someone buys a game at $59.99. They play it for a week, finishing the game and return it to receive $30.00. Game Stop sells that game for $54.99. That close to 92 % profit margin. $24.99 is profit for Game Stop. Microsoft is asking for a portion of that. I'm not sure if Used Game prices to customers will be affected though we all seem to be screwed in the end anyway.

super5fly
super5fly

@brycekoenig19 you do realize to play any multiplayer game you will need an online connection. Also if you have no or bad internet connection I can't really call you a gamer at least not console or pc wise. Hand helds and smart-phones are good i guess.

falloutworld272
falloutworld272

@quakebox  everyone Sony can play used games that is why i'm going for them instead of the xbox that can not play used games unless you pay a fee 

Mjtny73
Mjtny73

@LexsisHexin That is the worst idea I have ever heard. You want to give a privately owned company the power to tax another company?

KuriThunderous
KuriThunderous

@irfronaldinho 
That isn't exactly true. You should probably read their policy one more time. It even states in this article that Microsoft will not block used games. They are leaving that up to the publishers, and as the article also states will cause a huge backlash.
The always on connection part is misunderstood as well. You will still be able to play your games offline. The "always on" is a way for Microsoft to update and keep your games current without you having to wait. 
I won't be getting the xbox one (at least not starting out) but its not going to be this awful console that everyone thinks it will be. 

XboxGuy1537
XboxGuy1537

@lizardlava Somebody's an angry little PS fanboy. Quit hating on one side and just enjoy what you want instead of whining. Fan boy wars are ridiculous. 

Grenadeh
Grenadeh

@Joker_Vs_Clown Uh no. No one burned you on anything. Games has been the same price for 8 years. New games are 59.99 across the board for console and PC unless the publisher sets them at a different price, like RE Revelations, NG3 Razor's Edge, or other games that are cheaper.

stdarg
stdarg

@Joker_Vs_Clown Gamestop is not going to get fucked by this, they're gonna do better than ever because MS is killing the private sales market. You can still sell your game back to Gamestop for a pittance, but you can't sell it on craigslist or ebay.

Microsoft could have screwed Gamestop hard by creating an xbox live used game marketplace where anybody can trade games, with MS taking a 15% cut of the sale price. Goodbye Gamestop. But Gamestop clearly talked it through with MS and came up with a large enough bribe to prevent it, and totally screw consumers instead.

Now MS is waiting for Gamefly and Redbox to come up with a similar bribe, which is why you see "game rentals won't work at launch, but MAY in the future."

Of course if Sony learns a lesson from all this and wants to look like the good guy, they could capture a lot of good will for the PS4 and really hurt Microsoft. Although if that happened I suspect Microsoft will cancel the whole thing and apologize. Really they would not be able to compete with PS4 at that point otherwise.

swagga09
swagga09

@perkypossum THANK YOU XBOX LIVE IS WAY WAY AHEAD OF THE CURVE PS4 IS JUST NOW ADDING WHAT WE HAVE HAD FOR THE LAST AND CURRENT GENS PS3 WAS A DARK AND LONELY PLACE FILED WITH TEXTS AND EMPTY VOICES AND NO PARTY'S AND NO ONE EVER HAD MICS JUST A BORING PLACE  FOR A SOCIAL REALM

swagga09
swagga09

@perkypossum   THANK YOU PEOPLE JUST DON'T GET IT XBOX LIVE IS WAY WAY AHEAD OF THE CURVE ONLY TO GET BETTER WHY PS4 IS JUST  NOW INTERDUCING  WHAT WE HAVE HAD FOR YEARS, ON THE LAST GEN AND CURRENT GEN, HAD A PLAY STATION AND IT WAS DARK AND LONELY FILLED WITH TEXTS AND EMPTY VOICES NO PARTY'S NO ONE EVER HAD MICS NO APPS SLOW ASS INTERNET AND FOR HEAVY RAIN AND THE SHOW JUST WASN'T WORTH IT TO ME

Grenadeh
Grenadeh

@JamDev Article doesn't need to mention that - no one goes to GameStop that isn't a regular, and they already know that.

frylock1987
frylock1987

@JamDev  

Gamespot actually did have an article up about Xbox shares going down and Sony shares going up after the Xbox 1 reveal. 

mjswooosh
mjswooosh

@JamDev To be fair, the stock market is insane. Gamestop will be fine because within a very short time of next gen launch, any attempts to block used games is going to be met by a massive backlash and publishers/MS/Sony will have to back away from the idea quickly with patches and/or firmware updates. This isn't going to fly. People like to feel like they OWN something when they purchase it. If they are only "renting" something until servers go down, then why pay a PURCHASE price in the first place?

Grenadeh
Grenadeh

@megamatics Uh what? I've literally never bought a used game from GameStop that wasn't in perfect condition (disc wise). Some of the cases leave much to be desired, obviously, like I still need a real Alan Wake case and I know they'll try to bone me if I want to trade mine in, but cases are the only problem.

Grenadeh
Grenadeh

@jdeamaral Frankly that's your fault for being fickle, unemployed, having no pride or faith in the product, not being a collector, or any of the above. Don't trade in games. There's no reason to. If you simply don't buy bad games in the first place, you won't need to trade them in for something new.

It's not a library. It's a store. I honestly do not understand people who trade games in. I'm not rich and I certainly don't make enough dough to go to gamestop and buy 15 new games at a time, but what I do make enough money to do is research the games I truly look forward to and then buy them, and then pick up other games when the price drops.

Then again if you listened to me I wouldn't be able to go to GameStop and knock the used games into a cart and buy them (not that I do that but I may try it).

JamDev
JamDev

@jdeamaral The money retailers make on used games isn't the whole story. For one thing Gamestop's own figures show that 70% of the money they pay out to customers trading in games goes towards the purchase of new games, so it's not as if that money is leaving the industry. 

The trouble with trying to limit used games sales is that they risk killing the retail market completely. Retailers make next to nothing on new games, literally a couple of dollars per game, they need used games sales to survive. As one of Microsoft's selected retailers that will be able to sell used games GameStop may just about hang on (they did post a loss last year though, so no guarantee), but every independent retailer will go out of business if this becomes standard.

Physical purchases from brick and mortar retailers are still the biggest source of income for publishers, it would be disastrous for the industry if that sector disappeared or severely contracted. 

NetGod
NetGod

@jdeamaral 

Multi-system owner here. I love my PS2, PS3, XB, XB360, PC and iPad. I own about 120 games to play on those systems. 

Never, in my life, have I ever bought a used game for more than 60% of it's original value, and cannot imagine paying $54.99 for a used game. I would rather pay the extra $5 bucks and buy a new copy. It simply does not make since to me. The average price I pay for a used game is about $23.00.  Some I've paid as little as $8.00 for. I can't remember the last time I bought a used game from Game Stop. I almost always buy my used copies from Amazon. If I buy new, I will often drive to the Gamestop, and buy there, (gets me out of the house).

If people are paying $54.99 for a used copy of a game, they deserve to be separated from their hard earned money.

blue_shift_91
blue_shift_91

@jdeamaral 

i think half of that is over-exaggerated bullcrap, but if it somehow becomes reality, microsoft will eventually have to come to their senses when the sales figures and consumer satisfaction statistics come in. games are great, but a business is a business. and nothing speaks louder than the numbers.

super5fly
super5fly

@falloutworld272 @quakebox it's up to the publisher not xbox. granted there once every 24 hour connection is stupid. My hope is MS will realize there mistake and change the policy.


Grenadeh
Grenadeh

@KuriThunderous @irfronaldinho Don't bother telling these mentally retarded fanboy trolls to read. It has been stated repeatedly and very clearly that Microsoft WILL NOT block used games. They lack the 1st grade reading comprehension necessary to process that sentence. So, forget it.

DpwnShift
DpwnShift

@KuriThunderous

"You will still be able to play your games offline"

Yeah, for part of the day! Micro$oft has confirmed that you won't be able to play single-player, offline games unless the Xbox One "checks in" AT LEAST once every 24 hours.  That is *essentially* always-online required.

Reinbachimus3
Reinbachimus3

@XboxGuy1537 @lizardlava he might be a little...overzealous in his statement but he is right.  Xbox One is a pretty retarded name.  But both systems look retarded, whoever decided a Toshiba VCR was the way to go for a next gen system clearly needs some mental health help.

frylock1987
frylock1987

@NetGod @perkypossum  

PC is more powerful then both of those combine, you know why?

Because The new DRMBox 1 and PS4 are using guess what? 

PC Hardware.

Your going to spend 400-500 dollars tops on a console, and still complain about how much PC's cost, even after you paid 400-500 bucks for a PC Tower that pretty much hooks up to your TV.


You should care...that Consoles are looking for ways to screw you over and you are allowing it to happen.

mjswooosh
mjswooosh

@NetGod @perkypossum "cloud gaming" is not going to happen in the way that PR and marketing are making it sound. Remember when Kinect was going to change "game interaction" forever? How has that worked out? The most use my Kinect gets is from my girlfriend playing Fruit Ninja. That would be funny if it wasn't true.

So, "cloud gaming" fantasies aside, the PS4's local GPU shader is about 50% more powerful than the One's...and the effective memory bandwidth is roughly 20% higher as well. By comparison, the PS3's effective power advantage over the 360 was only 5-10% (depending on the dev you talk to) while being much harder to code for. This is why there is very little to no difference in current gen games.

Next gen launch games will be identical on both systems. But, by the time we are 2 yrs into the next cycle - say, by Christmas 2015, we will start seeing some pretty impressive graphical stuff on PS4 that the Xbox One will simply *not* be able to keep up with.

Having said that, graphics are not everything and I agree Live is much better than PSN for now. Live is really MS's primary ace card at this point. Kinect, NFL tie-ins, and all that garbage is just empty marketing BS.

The One will sell fine at launch. What remains to be seen is how well it will sell long term as negative word of mouth within the core gamer crowd continues to hamper it. Remember, gamers are passionate enough to drive long term sales. Dude bros, Soccer moms, and Football dads - the groups who MS seems to be targeting with the One - are not going to be quite as passionate about a $500 device that looks like a DVR but doesn't actually replace the DVR.

blue_shift_91
blue_shift_91

@frylock1987 @JamDev 

yea, that was stupid. same thing happened to sony's shares when they had their ps4 reveal. wonder why nobody said anything about that...

jdeamaral
jdeamaral

@Grenadeh @jdeamaral You should read my post. You make absolutely no sense. I have a great job, I make lots of money. I own my house and have four children. I do not buy used games. I love the idea of Xbox One using DRM. I hope the PS4 does the same. I cannot wait until it goes all digital, and companies find new ways to screw people.

Zevvion
Zevvion

@JamDev @jdeamaral All true, but the problem individual devs are having is that their games are traded in so fast, that a significant amount of the sales in the first month is used; of which they do not see a dime. 

That money circulates back into other games, but that does not help the dev of the game that was traded in.

This is a huge part of why used games can be bad for the industry. A lot of devs had to close their doors this generation. Both pirated games and used games served their part in killing smaller to medium sized devs. 

mjswooosh
mjswooosh

@JamDev Somebody here gets it. My faith in humanity is restored. ;) The idea that consumers are ready to go all digital for consoles is ridiculous. Especially with XBLA's pricing model that makes zero sense to any consumer with a brain. Why spend $40 on the digital download when you can order the used copy off Amazon for $15-20 or go to a local Gamestop and get it for $20-25? MS clearly doesn't have the brains that the people at Steam have in how to price their digital products to move more "copies". I still have faith MS will back-pedal enough to completely reverse all of these DRM restrictions, but so far has demonstrated over and over again it is tone-deaf to the desires/needs of its target market.

Grenadeh
Grenadeh

@NetGod Amazon is a waste of money unless the price is less than GS AND shipping is free. Shipping is never free because you can't buy used games from Amazon - you buy them from third party sellers. So Amazon Prime doesn't help you there. In the long run you spend more on shipping.

Grenadeh
Grenadeh

@mjswooosh You don't know who core gamers are then. I have friends of 10 and 20 years who LoL their asses off and are extremely good at the game, while Skyping the entire time - who also are very good at other, more "core" games. I have friends who are very good at Battlefield who actively skype on it as well . It's no different from when we used to use Ventrilo during clan matches in CoD 2.

There's useless, and there's expected. We expect that functionality as PC gamers, and believe me, PC gamers are more "core" than you'll ever be. Those features are far from useless and you WILL end up using them, despite your useless fake bitching.

Also, I suggest you look at the dictionary. Significantly...that word......it doesn't mean what you think it means.

Grenadeh
Grenadeh

@mjswooosh @NetGod @perkypossum You're ignorant. The One will easily "keep up" with them. 360 ran many games better than PS3 did, in fact, and nothing will change in regards to that. You console kids who don't work in IT frankly don't understand the numbers you're throwing around. 

There is a performance difference, yes, but the difference is only going to be in performance, not quality, and it is going to be minimal. You're talking about probably a 5 frame difference per second at the best. Console gamers won't even be able to notice that, only PC gamers will, and only experienced PC gamers. Even a lot of PC gamers simply can't notice performance gains.

In reality though the PS4 will truly not run anything much better than the One will - not so much that it will make a noticeable difference in your enjoyment. Sony fantards used to say the same shit about the PS3 and the reality is that when I switch inputs to my PS3, I hate every second of it. It is slower than 360, the UI especially, and overall it's  just frustrating.

kaim86
kaim86

@NetGod @mjswooosh We'll see if its true or not. I'm sure their are those that want it to be true and those that do not. Only time will tell. Nobody on here really knows its all speculation at this point.

parrot_of_adun
parrot_of_adun

@NetGod @mjswooosh NetGod, what do you think the capacity for this cloud service would be? letting that many people tap into that kind of hardware at all hours simultaneously isn't what MS has in mind. That would be like giving every other customer a free second box, not to mention bandwidth and latency issues.. How ever they really plan to implement this cloud service, it can't possibly be what they're trying to get people to think, that's why it's hype. The idea that every XBO user will have a machine 3 times more powerful than a PS4 is simply a pipe-dream that MS has no issue vaguely conflating with what the service will really end up doing. Just stating that their system has that *potential* is a way of getting potential customers to make assumptions about how their experience will be, even though that assumption is largely baseless, and for all intents and purposes, highly unrealistic. Not to mention that the primary capabilites of that service are for storage, which wouldn't effect visuals, and if anything would be a burden on anyone without a constant quality connection.

mjswooosh
mjswooosh

@NetGod *YAWN* If you believe that hype, I have some ocean front property in Arizona to sell you too... :)~

You sound like a typical kool-aid drinking NetTroll or a paid shill who says stupid "positive" shit about a poorly received product as a form of PR damage control/reputation management. And you offer ZERO recognition or admittance in your response of your poor reading comprehension.


NetGod
NetGod

@mjswooosh 

And I am telling you, that I do not buy into the idea that cloud 'processing' is media hype. You can explain as many times as you like, it still will not change the fact MS will be using cloud processing to boost the power of the XB1. In fact it will quadruple the processing power of the XB1. I expect the boost to performance to quite mild the first year, but would also expect that type of processing power to only increase over the years as the XB1 ages. 

mjswooosh
mjswooosh

@perkypossum Everyone has different needs so I respect you liking the idea of Skype. To me (and I suspect most core gamers) "social" functions like Skype and Facebook on a GAMING console are considered 100% useless..and pretty much redundant because I already have a half dozen devices in my household I can Facebook and Skype on much better than trying to do so with a gamepad on my 65" plasma.... ;)

Live will most likely continue to be the better online choice at first. We shall see if Sony puts in effort to catch up with PSN. So, this is still up for debate and we will have to wait and see.

What is not up for debate is the fact that the PS4 IS significantly more powerful at the "metal"...it just has more horsepower and looks to be a better design in several ways according to devs I've actually spoken with. And there is also the "bloat" aspect to Microsoft's OS/API which I've heard is already causing trouble as well...a problem the PS4 is not experiencing because the OS/API is much thinner and allows devs to get "closer to the metal" = can ring out even more performance.

perkypossum
perkypossum

@mjswooosh @perkypossum Now you mention how much MORE powerful the Playstation4 is compared to the Xbox One, I'm getting second thoughts on what console to get now... I care about graphics and the social aspect of it but like I said before I can't have the best of both worlds... But I just wish Xbox One was as powerful as the Playstation4 and had Skype, I don't care about Kinect but the Skype feature would make calls with your mates so much better HD quality sound and everything.

mjswooosh
mjswooosh

@NetGod*sigh* It sounds like someone (hint: you) has trouble with reading comprehension.

I didn't say Kinect had anything to do with cloud gaming.

The analogy I was pointing out (which should be obvious to anyone with an IQ higher than, say, 85) is that "cloud gaming" is mostly empty marketing hype...JUST LIKE Kinect was.

Do you understand now or do I need to re-explain it again?