GameStop issues warning on next Xbox second-hand block


GameStop has reacted to news that the next Xbox could block preowned titles by saying the move could “significantly diminish” demand for Microsoft’s next console.

We reported this week that the next Xbox could tether game purchases to one console, effectively halting the second-hand games market overnight.

GameStop’s shares fell after publication, and since then Bloomberg has reported that GameStop customers could snub the console if the preowned block goes ahead.

“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,” said GameStop spokesperson Matt Hodges.

27% of GameStop’s revenue and around 46% of its gross profit came from used games sales in the fiscal year ended January 2012, according to the Bloomberg report. In its most recent quarter, user game sales accounted for 28% of its revenue and 43% of GameStop’s profits.

You can read our analysis on Why Microsoft is killing the second-hand games market here, and find out how the next Xbox compares to PlayStation 4 here.