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Re: Xbox Reveal
The shit continues;
Report: MS, Publishers Will Take a Cut On Sales of Used Xbox One Games | Side Mission | GameTrailers
The shit continues;
Report: MS, Publishers Will Take a Cut On Sales of Used Xbox One Games | Side Mission | GameTrailers
This past week gave us the reveal of the Xbox One, as well as a number of questions surrounding the next-gen console. The biggest concern that has people fired up this week is how Microsoft will handle its used games policy. Today, MCV reports that retailers will have to give up a portion of pre-owned game sales to Microsoft and publishers.
Retail sources tell MCV that stores will need to be compliant with Microsoft's terms and conditions and have also agreed to use Azure, Microsoft's cloud based system that will track used games. When a customer trades in a game to an approved retailer, the system will mark the game as traded in and will deactivate the game from the customer's Xbox Live account.
It is now somewhat clear why the Xbox One requires an online connection. Earlier this week, Microsoft's Phil Harrison has said that the console must connect online every 24 hours. The company issued a Q&A stating that the Xbox One will need an internet connection but it does not always have to be connected online.
Currently, game stores that sell used games would pocket all profits on the transaction. With used Xbox One games, however, a percentage of the sale will go towards Microsoft and the game publisher. The retailer would then take the remainder of the sale, clearly a significant cut on profits compared to how used games sales work today.
What does this mean if you want to buy a used game? Most likely the price of buying a pre-owned title will rise with this policy. According to a source from Eurogamer, when a customer purchases a used game, the retailer will need to cover the cost of an activation fee for that pre-owned game. Microsoft hasn't finalized what the cost of the fee will be, but an unconfirmed report by Consoledeals.co.uk has said that the fee would be £35, which is roughly $50 in US dollars.
So it seems like the price of a used game is largely determined by how much this activation fee will cost. Also, the way this system is setup could mean you may never be able to sell your games privately on your own like on Craigslist or eBay. Well, technically you probably could, but the buyer would still have to pay an activation fee to play the game, which Phil Harrison himself has said would cost as much as the game itself. Under these circumstances, it would make no sense to sell a used video game on your own.
"While there have been many potential scenarios discussed, we have only confirmed that we designed Xbox One to enable our customers to trade in and resell games at retail," a Microsoft representative tells MCV. "Beyond that, we have not confirmed any specific scenarios. Another piece of clarification around playing games at a friend’s house – should you choose to play your game at your friend’s house, there is no fee to play that game while you are signed in to your profile.â€
For now, we'll just have to wait and see until Microsoft releases more details concerning used games on the Xbox One. In the mean time, we want your thoughts based on the new information received today. How do you feel about having less control over selling your games? Will it actually help the industry if Microsoft and publishers take a cut on used game sales, or is there too much backlash surrounding this controversial system that it would negate any benefits on the publisher side?
Update: Major Nelson has issued a statement regarding today's news on the trade and resell of used games.
"The ability to trade in and resell games is important to gamers and to Xbox. Xbox One is designed to support the trade in and resale of games. Reports about our policies for trade in and resale are inaccurate and incomplete. We will disclose more information in the near future."
Retail sources tell MCV that stores will need to be compliant with Microsoft's terms and conditions and have also agreed to use Azure, Microsoft's cloud based system that will track used games. When a customer trades in a game to an approved retailer, the system will mark the game as traded in and will deactivate the game from the customer's Xbox Live account.
It is now somewhat clear why the Xbox One requires an online connection. Earlier this week, Microsoft's Phil Harrison has said that the console must connect online every 24 hours. The company issued a Q&A stating that the Xbox One will need an internet connection but it does not always have to be connected online.
Currently, game stores that sell used games would pocket all profits on the transaction. With used Xbox One games, however, a percentage of the sale will go towards Microsoft and the game publisher. The retailer would then take the remainder of the sale, clearly a significant cut on profits compared to how used games sales work today.
What does this mean if you want to buy a used game? Most likely the price of buying a pre-owned title will rise with this policy. According to a source from Eurogamer, when a customer purchases a used game, the retailer will need to cover the cost of an activation fee for that pre-owned game. Microsoft hasn't finalized what the cost of the fee will be, but an unconfirmed report by Consoledeals.co.uk has said that the fee would be £35, which is roughly $50 in US dollars.
So it seems like the price of a used game is largely determined by how much this activation fee will cost. Also, the way this system is setup could mean you may never be able to sell your games privately on your own like on Craigslist or eBay. Well, technically you probably could, but the buyer would still have to pay an activation fee to play the game, which Phil Harrison himself has said would cost as much as the game itself. Under these circumstances, it would make no sense to sell a used video game on your own.
"While there have been many potential scenarios discussed, we have only confirmed that we designed Xbox One to enable our customers to trade in and resell games at retail," a Microsoft representative tells MCV. "Beyond that, we have not confirmed any specific scenarios. Another piece of clarification around playing games at a friend’s house – should you choose to play your game at your friend’s house, there is no fee to play that game while you are signed in to your profile.â€
For now, we'll just have to wait and see until Microsoft releases more details concerning used games on the Xbox One. In the mean time, we want your thoughts based on the new information received today. How do you feel about having less control over selling your games? Will it actually help the industry if Microsoft and publishers take a cut on used game sales, or is there too much backlash surrounding this controversial system that it would negate any benefits on the publisher side?
Update: Major Nelson has issued a statement regarding today's news on the trade and resell of used games.
"The ability to trade in and resell games is important to gamers and to Xbox. Xbox One is designed to support the trade in and resale of games. Reports about our policies for trade in and resale are inaccurate and incomplete. We will disclose more information in the near future."
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