Microsoft itself has tried to take a bite out of the used game market before, with an aborted plan that would have tied a game to the Xbox One console on which it's played forever - effectively destroying the market for used games on the Xbox One forever. Publishers say that the practice keeps video game retail prices high.
When a brand new game is sold, the title's publisher takes a hefty cut of the proceeds, but once it gets sold back to GameStop, Amazon, or Walmart and becomes a pre-owned title, the original creators never see another dime. The video game industry has long been critical of GameStop in particular and the pre-owned games market in particular. With Xbox Game Pass, Microsoft stands to take a hefty chunk of that budget-conscious market for itself. The sale of pre-owned and "value" (cheaper, older games) titles has long been a cornerstone of GameStop's business, accounting for about 25% of the chain's revenue and about 47% of its gross profit in 2015. It's a Netflix-like service that will bring Xbox One gamers unlimited access to a selection of over 100 games, including hits like "Halo 5: Guardians," for $9.99 per month, when it launches in the Spring.įollowing the announcement on Tuesday, shares in nationwide video game retail chain GameStop sunk roughly 8% to $24.44 per share. Microsoft showed off the new Xbox Game Pass on Tuesday. Used game sales account for 47% of GameStop's gross profits. Account icon An icon in the shape of a person's head and shoulders.
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