GameStop stock falters amidst Xbox 720 rumors
U.S. gaming retailer GameStop saw its stock tumble as a new report from EDGE revealed the startling news that the next Xbox may forbid the playing of used games. A big part of GameStop's business model is the ability to offer store credit on trade-ins toward another game purchase or buying older releases for less than full price. With used games potentially being barred from new consoles, this could be a crippling blow for the retailer.
Because of this, GameStop's stock value had dropped by over 10% when the market opened this morning. At one point the stock was trading for as low as 23.75 per share. The stock has somewhat recovered over the course of the day, but is still trading at 25.00, or roughly 7% less than where it was yesterday afternoon.
This is the second time this year GameStop has saw its stock suffer amid fears of next-gen console rumors. Earlier this year, it was discovered that Sony had patented some anti-used game technology that could potentially be used in the next PlayStation. Several analysts, including Michael Pachter, believe blocking used games on a console would be a crippling move for either platform holder. The common belief is that if Microsoft or Sony were to bar used games, the other platform holder would simply allow it in order to achieve a competitive advantage among consumers.
As a gamer, obviously I'm in favor of used games. Let's be honest, gaming is not a cheap hobby and the used game industry allows us to purchase games at a more affordable price. Publishers obviously don't like this because they see little to no return on pre-owned game sales, so it's understandable why they would be in favor of this type of technology. However, I believe a move like this by either Microsoft or Sony would do more harm than good for the company. I, along with many other gamers I'm sure, would easily flock to the system that offers me the ability to play pre-owned games.