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Xbox One Used Game Policy Leaks: Publishers Get a Cut of Sale
Chewbacon writes "Details about the used-game policy on Microsoft's newly-announced Xbox One console have been leaked. The policy explains how used-game retailers can survive Xbox One destroying the used-game market as we know it: they have to agree to Microsoft's terms and conditions to do so. In summary, the used game retailer can still buy the game from the consumer, but they must report the consumer relinquishing their license to play the game to a Microsoft database. They must also sell it at a market price (35£ in the UK), but the publisher will get a cut of the price. The article goes on to explain how Xbox One will phone home periodically to verify a player hasn't sold the game according to the aforementioned database."
A big downside is that we're likely going to see the end of cheap, used games. A potential upside pointed out by Ben Kuchera at the Penny Arcade Report is that this would unquestionably boost revenue for game publishers, giving the smart ones an opportunity to step away from the $60 business model and adopt pricing practices seen on Steam and iTunes (neither of which allow the purchase of "used" games/media). Also, it's worth noting that even if the policy leak is 100% correct, it could change before the console actually launches.
If game stores have to sell used games back at market price, why wouldn't they just sell the new game? Why would they buy back the old game at any price?
Can't sell used games for a console, if no one buys the console. Anyone foolish enough to fall into this trap and buy one deserves what they get.
Seriously.
I won't be buying ANY console that doesn't allow me to sell/trade/lend my games to WHOMEVER I want, for WHATEVER PRICE I want.
And frankly, I fully expect MS to get sued by various states, and possibly the feds. This is exactly the kind of "screw you" that consumers HATE. Maybe, possibly, this whole mess could finally get the Supreme Court to clarify what "first sale" rights are, and to do away with this whole bullshit of "we didn't sell you software, we just sold you a LICENSE TO USE our software".
This sounds like it might run counter to the new EU law that mandates all software can be resold, regardless of licensing, agreements, and dongles. Didn't they make it specifically clear that when you buy software, it is yours, and yours alone, and you are free to resell it, and it then becomes theirs, and theirs alone. The actual publishers have no say in what you want to do with it.
I don't normally assume that major companies do not have competent lawyers, but as far as I know price fixing is illegal in the US. There are ways to keep prices set for new products, but for the most part we have "suggested retail price". This also would seem to violate the first sale doctrine, which has been upheld in many court cases.
"She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
Anyway, I wanted to spell it out for you all, but it was removed. This proves to us that this plan for used games has nothing to do with countering piracy, but only feeding greed.
Chewbacon
The Bible is like Wikipedia: written by a bunch of people and verifiable by questionable sources.
I already see the trolls coming to say "So what if Microsoft does it, Steam's been doing it for years". Well, look at Steam's prices and sales. I saw a game that came out a few months ago for $20 on Steam in a sale. The best "sale" of new-ish games on the Xbox (online) market is a $60 game being sold at $50. Steam's prices are competitive, Microsoft's isn't.
In fact, if they are making used game activations fixed at ~$35, this is basically price fixing. Here's to hope that some publishers will see that they can offer new copies for $35 or $40, instead of the typical $60. If they allowed distribution across the internet, this would *completely* destroy the used games market, which I wouldn't say is a super terrible thing if the pricing will be fixed. This would lead to a chain reaction of the used game market fighting to have non-fixed prices.
If you find this onerous, being tied to a console and the policies of the manufacturer, why not vote with your dollars and return to PC gaming? Crazy first person shooting, online RPG playing, live-action strategy obsessing gamers have never had more options to choose from in terms of platforms and services to supplement their addiction.
A big downside is that we're likely going to see the end of cheap, used games.
Ummm, no. The big downside here is the death of the First Sale Doctrine in the United States and the ridiculous court proceedings that will ensue to try to defend it and revise copyright law that has gone completely off the rails from its original intent.
some anon yesterday(i think) suggested that all the info info we're getting about the drm sheme is just ms doing clandestine market research.
they leak news that makes it sound bearable - people respond positively.
then they leak news that gives them more control - people respond negatively.
through enough iterations they may find out the approach that will be most accepted.
who knows if that's what's really going on; but it sounds plausible.
Excuse my ignorance of the law, wouldn't this be considered collusion between Microsoft and the game companies to fix game prices?
This largely wipes out your right of first sale, and it props up the business model for the buggy whip makers.
Why should a video game company get a cut of used sales? Oh, right, because it's software, you licensed it, and have no rights.
This pretty much cements the fact that XBox One is something I will definitely not be interested in.
Right now I can buy used games, take a game over to a friends place, and sell my games -- and it's none of Microsoft or the game publisher's business. This basically says we will need their permission to do anything, and entrenches their own revenue stream.
There's no way in hell this leads to companies charging less for games, they'll just take their cut on both ends and expand their profits.
Sorry Microsoft, but I'll pass thanks. There's nothing about this that's good for consumers.
Lost at C:>. Found at C.
So, this effectively kills my ability to ebay off an old game I don't play anymore. Only 'big' stores will be able to sell used games after they remove the original buyer from the database? I can easily forsee many many people unable to play games because some minumum wage gamestop employee typoed a game's serial number or something. Plus, you might as well paint a big bullseye on that database for hackers. Can you imagine all of xbox losing all it's user/game data at once.... lol
Here in Brazil we saw comparable situation. Our import taxes pretty much doubled the price of the games. So a few business started to print discs here while the game industry lobby worked on a tax reduction. They got the reduction and guess what? Most games are still the same price as before, with exceptions like Ubisoft that at first reduced the price by 25% (From 200R$ to 150R$), but since then already increased the prices again from 150R$ to 180R$ at launch. They will just increase profit margin per unit and hope people are dumb enough to buy a console that takes away your right as owner of the product.
I don`t but used games, but I respect the right of a user to do to his game as he pleases. Games should not be different from any other physical property. If I pay for someone to build a house, I don`t have to pay the contractor a part of the rent or part of my money if I sell the house. That`s absurd! The difference is that since games still have market value when the original owner is done with them they are trying to milk us once again for our money.
This combination doesn`t exist: ETIs that know about humanity and want to see us dead. Otherwise we wouldn't exist.
Personally I like both models when done completely seperately, but what Microsoft is doing here is taking worst of both worlds.
As someone else said, Steam is nice and convenient. They have more aggressive pricing, immediate downloads(that can go faster than 500Kbyte/s, unlike Xbox Live), and no need for annoying disks that you'll eventually end up losing
Microsoft appears to be combining the physical aspect with the virtual aspect. Sure, being able to sell your game is nice, but if you take that ability away you damn well better keep me content with your service in other ways. Steam does that, Xbox doesn't.