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.

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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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G36cBossManPosted:

I agree this does suck but i am glad in a way cause gamestop just rips people off every way they can my friend traded his 3ds in and got $30 for it then there just gonna turn around and sell it for over $100 #uck game stop!

SynybunPosted:

This is just dumb. I'm so glad i have an xbox. I have an xbox at my mom's house and my dad's house. I wouldn't want to buy two copies of every game that i play. If this is some attempt at squeezing money out of ps3 players, it's not going to work.

370zPosted:

Guess Im Not Gonna Buy The New Playstation.

NatusVincerePosted:

This is why next gen consoles are going to suck.

DavidDo0MPosted:

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.

IglesiasPosted:

stevo23 well this is just another reason Xbox kicks ps3's ass


I think both consoles have their flaws. I own a 360 but I have owned a PS2 in the past.

L33t-Ninja-MuchPosted:

there trying to make more money but this isnt going to help at all

stevo23Posted:

well this is just another reason Xbox kicks ps3's ass

aimiami12Posted:

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?

CentPosted:

-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.


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