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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T3chGhost25Posted:

This would suck on a massive level for gamers like me who likes having options. I don't always have $150 for two new games. All though the prices will eventually come down, its still a drag.

As for Gamestop's trade value system, I usually just wait until they have some trade in deal. Last week I racked up over $200 in store credit. I look at it like this; if you buy something that is new and sealed, the value of that product goes down as soon as you open it. If you buy a new car and drive it around for a week or so and then return it to the dealership, do you think their going to give you back the full amount you paid for the car?

Gamestop may suffer, but they ain't going out of business.

XprNPosted:

aimiami12
CuddleMuffins
-Phoenix- Xbox, this is why we all love you so dearly. Go away Sony, Nobody wants you here.


Couldn't of said it any better.


Microsoft is concidering the same thing...


Both companies will do it. They would've contacted each other. It would be suicide if Sony did it and Microsoft didn't.

aimiami12Posted:

CuddleMuffins
-Phoenix- Xbox, this is why we all love you so dearly. Go away Sony, Nobody wants you here.


Couldn't of said it any better.


Microsoft is concidering the same thing...

HybridOriginzPosted:

how can they tell :P

SwiFTAIRBORNEPosted:

How do they know if a game is used? Id rather play my ps2 than my ps3 anyway. Reason why i sold that thing anyway.

HallowFormPosted:

Gamestop isn't putting "power to the players" by ripping their money away when people go into trade their games.

I'm glad Gamestop's stock plunged.

YouKissGirlsPosted:

Loan does anyone still use PS2 or go to gamestop?


A lot of people go to gamestop daily.
Also I'm sure people still play ps2 but people also buy used ps3 games..

LoanPosted:

does anyone still use PS2 or go to gamestop?

BenedictionPosted:

I have never and never will buy anything after a ps2. My parents bought the ps2 for us when we were children and now we have xbox's. Microsoft>Nintendo>Sony.

SynybunPosted:

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




DrRageface 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".


Hopefully Microsoft is smart enough to keep this bad idea away from xbox.


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