Sony anti-used game patent leads to GameStop stock plunge

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GameStop's stock price dropped six percent on Thursday following reports that new technology patented by Sony could eliminate the pre-owned games market.

The technology - which tags individual game copies with information about previous use - could potentially be used to restrict the use of a game to one machine or user account. This could mean bad news for the US retailer - a major player in the pre-owned market.
The market responded to the news with selloffs of GameStop shares, resulting in the retailer's share prices falling by $1.57 to $24.09.

Michael Pachter of Wedbush Securities moved to appease investors, claiming Sony would be unwise to implement the technology to its full potential. "Sony would be materially hurt if its console blocked used games and competitor consoles from Microsoft and Nintendo did not," Pachter wrote in a note to investors.

"We think the reaction is overblown," he continued. Indeed, SCEA CEO Jack Tretton is reportedly against moves to implement technology designed to block used games.

Elsewhere, an analyst for Janney Capital has noted a similar pattern in the lead up to the PS3's launch.

Posted:
Related Forum: PlayStation Forum

Source: http://www.computerandvideogames.com/385005/sony-anti-used-game-patent-leads-to-gamestop-stock-plunge/

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"Sony anti-used game patent leads to GameStop stock plunge" :: Login/Create an Account :: 105 comments

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EndurePosted:

DavidDo0M It is Gamestop's fault they feel the need to make such moves. The studio/publishers create the game, publish the game, market the game, ship the game and make a ONE TIME profit. All Gamestop does is sell the game and nothing more. Gamestop makes their initial profit, then unlimited subsequent profits off the same copy of the game by buying it back dirt cheap($8-$20) and reselling it over and over again at $55. Gamestop is tripling their income by screwing the developers out of potential sales because why buy it new for $60, if I can get it used for $55? This is why we have witnessed the rise of the online pass. If it continues, it is inevitable that we will not only see an increase in online passes, but also the beginning formation of non-reusable games, if not all digital content. Everyone is going to get pissed and blame the publishers and the developers, when truth be told, the fault lies with your precious GREED FACTORY Gamestop.


Actually, It's not that the game is $5 cheaper, it is the fact we can return it within a week if we want to.

TXTutsPosted:

Hackers will find a way around it just give it some time

DrRagefacePosted:

If Sony wants to commit suicide and let their competitors dominate the market, go right ahead. I'll stick with microsoft who hasn't let me down "yet".

yo2434Posted:

aimiami12 This is exactly what the pc does so why all the hate? Also some of you are saying sony is losing money... How are they losing money if people are buy new games directly from sony?


people figure if you cant buy used games,less people will buy the console and switch to either pc or xbox.

LBK117Posted:

Well I think Play Station people are safe, Sony's stock is a tenth of what it was 10 years ago. If they were ignorant enough to implement that patent everybody will be forced to be on Xbox 360, PC and maybe Wii U.

VisionaryMGMTPosted:

Online passes piss me off a lot because I buy used games sometimes. I guess this won't effect me because I'm going to PC and will be using Steam, so used games won't really even matter to me then.

oohPosted:

This would be a horrible idea.. They would lose a lot of money this way, considering game stores etc. wouldn't be able to rent out games either :/ lol

ViIIainPosted:

What about gamefly to? You won't be able to rent games :/ that would suck for ps4 users

-Naked-Posted:

That's gay.. so 6 years down the line if I want an old classic, I'll have to find a new copy of it.

Index_AddictPosted:

That would suck if it they did implement that. It wouldnt just be for gamestop it was true. Othe then that yeah gamestop overcharges the **** out of everything anyways


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