GameStop shares slide on Xbox One preowned rumors

[UPDATE] Share value down more 13 percent today amid new reports claiming GameStop's business could be hurt by Microsoft's rumored used game policy for next-gen platform.

[UPDATE] Following the publication of this story, GameStop shares continued to fall. At press time, the retailer's stock value is down 13.36 percent to $31.19.

The original story follows below.

GameStop shares are sliding today after a new reports have claimed the Xbox One's preowned policy could negatively impact the retailer's business.

At press time, GameStop shares are down 6.75 percent to $33.61.

The company's stock value has dropped steadily since Tuesday, when Microsoft announced the Xbox One and gave first details about how it would support the used game market.

MCV reported today, citing retail sources, that retailers will be able to charge whatever they want for secondhand Xbox One games, while Microsoft and publishers will receive a cut of every transaction. GameStop will be left with the remainder, according to the supposed scheme.

Under its current business model, GameStop nets 100 percent of the used game sale.

Microsoft's rumored plan would not likely kill the secondhand market, but only minimize its lucrative margins by giving a cut to publishers.

Sony has not been forthcoming regarding its plans for used games, either. The company--like Microsoft--has confirmed that preowned titles will be supported on the PlayStation 4, but said decisions about activation fees will be left up to individual publishers.

"It's a publisher decision," Sony said in February. "We are not talking about it. Sorry."

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Eddie Makuch

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.
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1057 comments
daveg1
daveg1

pure grred nothing more from one of the biggest companies in the wolrd..sony will either get greedy too or go the other way and trounce microsoft next gen..


if sony dont go down this route it wont be a contest next gen and the ps4 will sell silly amounts..then forcing microsoft to do away with all this utter greed.

i for one wont be buying either machine if this crap continues.

jdeamaral
jdeamaral

I wish they go bankrupt, as they have, in part, made developers close shop. 

PerrysburgGuy
PerrysburgGuy

Think how much less you'll get for trade in games when you're restricted to just approved resellers.

genjuroT
genjuroT

I have two reasons I don't shop at Gamestop anymore. You can't find buried treasure anymore, and there are dicks working at the one near me lol.

I remember the best game I ever found as buried treasure was MS Saga. I was like O_O when I read the back of the case.

Moegitto
Moegitto

The one thing I hate about Gamestop is how fake their employees are, not only are they insulting you with their prices, but they act like they are cool with you when they are nothing more than a clique of thieves that for some reason think they are better than the people they sell to. The only reason why I shop there is because I have $603 store credit saved up for one of the new consoles. I have to see how this DRM situation plays out but I know for a fact Amazon and Steam are about to get more money from me.

jazilla
jazilla

i kinda don't care because i can't stand the business practices of gamestop, but not being able to get used games without a fee that has no justification at all is pretty bad. 

cortana64
cortana64

Traded or borrowed games can be done by befriending some one, on XBL,

razorfett147
razorfett147

I kind of agree.  Gamestop hasn't been my place of choice for used games for the last few years.  Their pricing schemes have gotten borderline ridiculous.  3 years ago I tried to trade in 6 of my 360 and PS3 games only to be told their offer was 9 bucks.  Really???  And lately I've noticed instances where new games with reduced pricing were less expensive than used copies of the same game.Gamestop got greedy somewhere along the way, and now I go to Amazon.com for all my used gaming needs.

nutcrackr
nutcrackr

The question is, how much extra volume will Gamestop receive when gamers cannot trade between one another anymore? Probably not enough to negate the reduced margins.

disturbed_mk
disturbed_mk

Used game stores are just going to have to find ways to make more money. Currently when I go into an EB Games here in Canada. I see a new game for 59.99 and an used copy for 54.99. Wow! Big savings there! Then they ask if I want to pay extra money for disc protection! lol. No thanks I'll just take a new copy. They pay nothing cash wise for my games and offer very little trade in value on games either. Perhaps if they offered better trade in deals on a regualr basis. And made used game prices A LOT better. They would get more regualr customers. Less dollars made per transaction, but more transactions.

Upat3am
Upat3am

What do you mean you will only give me $9.00 for my digital copy of Battlefield 4...............

07wintert
07wintert

and so it begins as i predicted this xbox and Larry Hryb are jokes.

hadlee73
hadlee73

If there was ever going to be a solution (that works for everyone) for the used games problem (and it IS a very real problem, no matter how hard it may be for people who don't work in this industry to believe) it cannot be solved by the console manufacturers. It needs to be solved at a publisher and retailer level.

blackace
blackace

Their stock stopped at $32.11. I wonder if Gamefly has stocks?

squiddygamer
squiddygamer

Is no one thinking of the amount of jobs people will loose if Gamestop/ Game and other large electronic game stores go out of business. Yes the company you may not like but the people who work in stores like this are your fellow gamers.

What happens at the moment is that these game stores keep 10's of thousands+ in jobs across the globe.

EL_Bomberdor
EL_Bomberdor

Lets ruin companies that are good to gamers and make loads more money to the systems and devs... nice.

enoslives7
enoslives7

LMAO. Gamestop has always supported micro$oft,  and now they are being stabbed in the back by them.

Same old micro$oft.

Shielder7
Shielder7

When the market sees no one will buy an Xbox One they'll go back up.

Samslayer
Samslayer

Does anyone know if Gamestop would have any chances to file an Antitrust lawsuit with this issue?  It sure does sound pretty iffy to me, especially when a whole industry is in the hands of few. 

skelly1331
skelly1331

I don't see what people hate gamestop for. They tell you how much they'll give you when you trade in the game. So if you don't like the amount then don't trade it in. I don't see what people are mad about. And sometimes they do have pretty good deals on trade ins. I had a couple of newer games and got almost thirty dollars each trading them in. Plus they have special days were if you trade in a certain amount of games you get extra trade in credit and if you trade towards the purchase of a certain game you get extra. It's stupid to complain about them selling the game back at a high price. If they bought it from you for cheap and sold it for cheap then they wouldn't make any money. Plus it's easier to trade in a game then sell it yourself, especially on older games that are less wanted. 

ScreamDream
ScreamDream

Gamestop gives you the choice to trade there or go Craigslist, give, borrow or trade with friends, ebay and more. M$ is going to make you trade with registered retailers or themselves. The consumer loses if you go that route.

BARRICADE_28
BARRICADE_28

Gamestop losing money?  Sweet vindication!  I hope they go bankrupt and a better company fills the void.

theKSMM
theKSMM

@disturbed_mk What I find most offensive is that they've already opened many of the games being sold as new!  Worse still, employees are allowed to "check-out" those games and take them home!  How is that not a used product?  As a result, I never buy new games from them.

Green_Chaos
Green_Chaos

@disturbed_mk Your not alone...There are two GameStop's close to my house and they pull the same bull where I live...59.99 for a new game, 54.99 for pre-owned games...It's usually found on some of the big ticket games...It makes me sick that GameStop would do this to their subscribers...

BlazingSpeed
BlazingSpeed

@squiddygamer MS and EA only see $$$...the reason i mention EA is because of Origin. Ubisoft always online Uplay is also a step in MS 24 hour online check.

hackerrei
hackerrei

@EL_Bomberdor whose good to games? Do you mean gamestop really they rip you off worse the MS/sony O waite I see it now there is a EL in your name maby you can't afford new games the future sucks for you and they are makeing the fences taller too I'm sorry.

mattress805
mattress805

The proposed plan violates the "1st Sale Doctrine" which is actually real and something the Government would enforce; but not until its actually enacted by Microsoft. There's nothing illegal by Microsoft just proposing this idea right now; besides its a terrible fucking idea.

criticalmass-_-
criticalmass-_-

@BARRICADE_28  Microsoft fills the void, instead of getting 1/4 -1/2 your money back you'll get an achievement instead.

JoeGamer1234
JoeGamer1234

 @Shielder7 And it's dumbfucks like this that the market is heading in the direction it's going in.

mattress805
mattress805

"The first-sale doctrine creates a basic exception to the copyright holder's distribution right. Once the work is lawfully sold or even transferred gratuitously, the copyright owner's interest in the material object in which the copyrighted work is embodied is exhausted. The owner of the material object can then dispose of it as he sees fit. Thus, one who buys a copy of a book is entitled to resell it, rent it, give it away, or destroy it." From Wikipedia. This applies to games too. Ya think Microsoft's lawyers would have known this; but considering Microsoft has been taken to court by the Feds and lost for Monopolisitc practices, I'm not surprised.

mattress805
mattress805

1st sale Doctrine protects consumers from ideas like this. Google first sale doctrine.

ScreamDream
ScreamDream

@surferosh I'm not a lawyer but I'm sure there will be lawsuits whether MS wins or loses.

Poodger
Poodger

@criticalmass-_- Until we realize the the Xbox One fails, and BOTH die off! Now all we have to hope for is that EA somehow gets caught in this maelstrom of devastation, and the industry is better off with all 3 big bads in their graves!

clockworkengine
clockworkengine

@HShadow  

I'm with HShadow on this one. They could look at it two ways: one, as he mentioned, the license. As Shadow said, you're buying a license, which carries with it an end-user agreement which you agree upon legally simply by playing the game. 

From the perspective of those who believe you are paying for a disc and not a license, you are free to trade, sell, give away, or destroy the disc itself. Whether or not the person receiving the disc can use it without further penalty is immaterial.

mattress805
mattress805

Sad? What's sad is you don't know how to spell. Sad? You having dance central parties with a surveillance device placed in your house on Xbox one. Sad? Me driving my infinity G 35 and running you off the road while you're riding your bike back from washing dishes at a restaurant. Online degree? Try University of California. How's that GED working for you? Sad? Just because I'm defending used games and disagreeing with Microsoft's draconian policies they're proposing doesn't mean I can't afford the games. Lol. Make sure you have plenty of lube around your house when Microsoft bends you over this fall

hackerrei
hackerrei

@mattress805 Because it is not legal to sell them to game stop but no one upholds that law so nothing happens and please don't bregg about your online degree it makes you look bad because even with a law degree you still can't afford new games so you are defending used games. Sad

Angelsoft717
Angelsoft717

@mattress805 Although I agree with you, it would hard to find a reason saying you can't do with what you see fit. Technically you can still give it, rent it to somebody, or destroy it. It just takes an unreasonable amount of money.

mattress805
mattress805

I disagree with you. I'm not signing any EULA when I buy a hard copy. I'm just agreeing not to copy it. I got my bachelors degree in law at the University of California. Where did you get your GED? The Only thing I agree with you is when you're buying a downloaded copy of something online. And First sale doctrine does apply to goods like video games or it wouldn't be legal to sell them to GameStop in the first place. Does Microsoft send you a check?

HShadow
HShadow

@mattress805 technically when you buy a piece of software (game or anything else, console or PC) you are simply buying a license to use a service (the game). This doctrine you noobs are posting has to do with "work is lawfully sold or even transferred gratuitously"... nothing is being exchanged between the two parties. you are simply buying a license that can be revoked at any time. 

please learn bussines and law before ever posting again mattress805. thank you.