Next-generation Xbox will not block used games, GameStop CEO says

Rumors that Microsoft’s next-generation video game console might somehow block owners from playing used games began swirling earlier this year, and gamers around the world cringed. Of course the rumor had much more significant implications for video game vendors like GameStop, and the company’s chief executive Paul Raines addressed the issue during its earnings call last week. “We think it’s unlikely that there would be that next-gen console because the model simply hasn’t been proven to work,” Raines said according to Digital Times.” Remember that used video games have a residual value. Remember that GameStop generates $1.2 billion of trade credits around the world with out used games model. So consider taking used games out of that, you’d have to find new ways to sell the games, and our partners at the console companies have great relationships with us.” GameStop accounted for between 60% and 70% of first-week video game sales as of 2010 according to ADVFN.

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Image source: Kristen Lanae

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