GameStop: next Xbox sales will suffer if used games are blocked

Retailer warns platform holders not to alienate customers

GameStop believes consumers would snub new console hardware that blocks the use of pre-owned games.


Responding to an Edge report which claimed that Microsoft's next Xbox will require an internet connection to function and block the use of second-hand games, GameStop spokesman Matt Hodges told Bloomberg:

"We know the desire to purchase a next-generation console would be significantly diminished if new consoles were to prohibit playing pre-owned games, limit portability or not play new physical games."

Hodges said GameStop came to this conclusion based on surveys of its most active customers, the 21 million US members of its PowerUp Rewards loyalty program, although he didn't provide any specific details.

GameStop generated 27 per cent of its revenue and about 46 per cent of gross profit from used games during the business year ended in January 2012, and Edge's report resulted in the company's share price dropping 6.8 per cent earlier this week, its biggest fall in a month.

Microsoft said in response to Edge's report: "We do not comment on rumors or speculation. We are always thinking about what is next for our platform, but we don't have anything further to share at this time."