XBOne Publishers to receive cut of Xbox One pre-owned sales at retail

Martok

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Retailers will be free to charge whatever they wish for pre-owned Xbox One games, but both Microsoft and publishers will take a percentage cut of every sale.

Retail sources have told MCV that Microsoft has this week briefed key retail partners on how it intends to take ownership of the pre-owned market.

This is how we’ve been told it will all work:

A gamer walks into a retailer and hands over the game they wish to sell. This will only be possible at retailers who have agreed to Microsoft’s T&Cs and more importantly integrated Microsoft’s cloud-based Azure pre-owned system into its own.

The game is then registered as having been traded-in on Microsoft’s system. The consumer who handed it over will subsequently see the game wiped from their account – hence the until now ambiguous claim from Phil Harrison that the Xbox One would have to ‘check in’ to Microsoft’s servers every 24 hours.

The retailer can then sell the pre-owned game at whatever price they like, although as part of the system the publisher of the title in question will automatically receive a percentage cut of the sale. As will Microsoft. The retailer will pocket the rest.

Unconfirmed reports on ConsoleDeals.co.uk suggest that retail’s slice will be as little as ten per cent. That’s a significant cut from what it has become accustomed to from pre-owned sales and more in line with what they would receive from the sale of a new game – hence, the value of the pre-owned market to the retailer is effectively destroyed.

These same unconfirmed reports also suggest that the activation cost for consumers buying or borrowing pre-owned software will be £35.

When contacted by MCV Microsoft responded with the following statement: “We know there is some confusion around used games on Xbox One and wanted to provide a bit of clarification on exactly what we’ve confirmed.

"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. 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.”

UPDATE: Many readers are asking whether the £35 will be additional cost on top of the price of buying the game. No, we believe that the £35 figure – which is not our number, incidentally – would cover the entire transaction. If correct this would leave retail with a cut per sale of around £3.50.

Source: mcvuk


This sounds like Microsoft's way of killing off the pre-owned market by still allowing it but making it unprofitable for retailers and too expensive for gamers.
 

Slaine

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I was kind of hoping Microsoft might do a u-turn in wake of their disastrous reveal. But it looks like its here to stay.

Something positive Eurogamer had to say about Sony though.....

My source didn't know what Sony was up to but doubts the PlayStation maker will do the same thing, not because it's angelic but because it lacks the kind of pricey infrastructure something like this requires.
 

OAPboba

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£35 for a used game? Virtually all new games drop below this price point within a couple of months as long as you don't shop at Game.
I think Microsoft will struggle if they stick with this. I think most early adopters will care about this sort of stuff so initial sales would be low if they stick with this shit. I really hope Sony are not considering anything like this.
It'll be a sad day when we're all reminiscing about the "good old days" of the online pass!
 

ColSonders

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As i've suspected for the last few days....it is entirely Microsofts intent on entirely destroying the second hand market.

£35 is the price I tend to pay for brand new games, sometimes on launch days at that price.

I wonder what sort of prices they are going to try to enforce for new games.

I don't think Sony will be doing anything too differently, though there may be subtle differences I reckon Sony are being forced into the same position by developers.

Time will tell and I reckon this is guaranteed failure for Xbox1 if Sony confirm they aren't doing the same shit.
 

farfromsane

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I was kind of hoping Microsoft might do a u-turn in wake of their disastrous reveal. But it looks like its here to stay.

Something positive Eurogamer had to say about Sony though.....

I'm sure it was mentioned after the PS meeting that Used Games would be allowed but that it would be up to the publishers.

As i've suspected for the last few days....it is entirely Microsofts intent on entirely destroying the second hand market.

£35 is the price I tend to pay for brand new games, sometimes on launch days at that price.

I wonder what sort of prices they are going to try to enforce for new games.

I don't think Sony will be doing anything too differently, though there may be subtle differences I reckon Sony are being forced into the same position by developers.

Time will tell and I reckon this is guaranteed failure for Xbox1 if Sony confirm they aren't doing the same shit.
Microsoft want to control the Second gaming market. Sony could be forced but most big publishers will need both platforms especially with the price of making the games increases. It's always a possibility that XB1 could become a complete flop.
 

farfromsane

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That Major Nelson bloke as recently posted this regarding Used Games

Over the paste few days, we have been reading comments and message boards following the Xbox One announcement. There are a few questions regarding used games. I wanted to clarify and provide this official statement:
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.​
So no real answers yet
 

jonnywombat

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To me it makes sense for Sony not to implement anything similar, and then they can sit back and watch their market share rise, as the ability to trade games would be a deal breaker for a lot of people, far more than any of the other features they have announced for Xbox 1 as yet.
 

Acegadgets

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This looks to me like total fabrication by mcv. It would have been a good story to publish on april 1st.
 

Martok

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This looks to me like total fabrication by mcv. It would have been a good story to publish on april 1st.
The fact that they've spoken to retail sources for this information suggests that there's at least some truth to it. Several other gaming websites have also published the same story. Microsoft haven't said outright that it's utter rubbish.

Is it 100% correct? Probably not. However Microsoft are out to kill off the preowned games market or at least take control of it themselves to profit from it and we'll see the exact details of this in the coming weeks.
 

TalllPaul

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If this money went to the devs I would be less against it, but going to the publishers, would this then be pumped back in to make better, new and fresh games or will the publishers pocket the lot *cough* EA *cough*
 

Slaine

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Ive just read a report on The Sixth Axis where a guy from Take Two has chimed in and said if Microsoft are going to charge people to pay to play 2nd hand, then shouldnt we have a cut? Ive always assumed the plan was for the developer to take a slice too, instead it seems theyve been left out in the cold, with just Microsoft and the Publishers earning out of it. And companies like EA wonder why they attract so much hatred.:roll:
 

Slaine

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Heres an interesting report http://www.eurogamer.net/articles/2013-05-30-what-is-the-point-of-xbox-one-drm by Eurogamer on the Xbox One, DRM and piracy and 2nd hand games.

The gist of it is, piracy isnt as rife as they'd have you believe. In fact its negligible. The online game passes were scrapped by EA not because of any good will (although that probably was a small factor), but because very simply they werent cost effective and didnt make an iota of difference.

All your left with is the blocking of 2nd hand/game sharing as the sole reason for implementation. The only reason this is being implemented is pure greed; in a bid to control & stem the flow of the games being traded in & to stop you lending the game to a mate/family.

Either way, if M$ and Sony both implement DRM, then we are all (and that includes them too) entering completely unknown territory. This is my best quote from the report here...

On Wednesday Wired reported on a new studyciting Japanese video game sales that presented uncertain conclusions: on the one hand, it said the removal of a used market might lower profit-per-game for publishers by 10 per cent; on the other, it said that the lack of a used game market might lead to lower new-game prices because consumers would stop factoring in resale value. As Wired noted, however, these outcomes are extremely unlikely because in reality a used game market would have to be replaced by something else.
What about the world outside games, then? Well, in 2005 the New York Times trawled through various academic papers assessing the impact of the used book market on sales of new books. It suggested that the presence of a used book market makes consumers more willing to buy new books, that consumers often take resale value into account when buying new books, and that there are probably two distinct types of buyer - those who purchase only new books, and those who are quite happy to buy used books.
So it might not be all doom & gloom. Sony & M$ may go down this god forsaken route, but supply & demand could force them to lower the cost of their goods, thus offsetting what they were hoping to make on the back of the DRM.

So you have to wonder, as the article states, whats the bloody point in implementing it in the first place?
 

Slaine

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The Sixth Axis said:
Whilst Sonyhave remained stoically silent (or, at best, vague) about their overall plan for used games and the surrounding issue of DRM, Microsoft have repeatedly bumbled their PR regarding the Xbox One’s take on the currently hot topic.
According to one analyst, Cowen & Company’s Doug Creutz, that won’t happen again at E3, with both companies to clearly focus on the games, and not venture into the murky waters we so desperately want clarified.
“For Sony, the challenge is how to differentiate the PS4 from what Microsoft is offering,” says Creutz, “given how badly the PS3 has lagged the 360 in Western markets.”
“We also don’t expect to hear any official word on what the used-game policy will be on next-gen consoles,” he added. “We doubt either Microsoft or Sony will address pricing for current- or next-gen consoles at E3.”
Trade website GamesIndustry says it’s expected that both Microsoft and Sony will “charge consumers who buy games second hand to access the content, ensuring the hardware manufacturers and the publishers receive a cut of used games sales.”
Microsoft have cancelled their usual post-conference press round table, and have apparently informed media that there won’t be any opportunities for interview time with “senior executives to discuss the Xbox One business during E3.”
I know I know, another analyst announcing stuff he isnt even privvy too. The reason I posted up this is the fact that Microsoft have cancelled their "usual post-conference press round table". Could take this two ways :-
  1. They dont want to reduce their E3 reveals to the farce that was the Xbox One reveal, with misinformation & general cluelessness from their own bumbling Execs
  2. Theyve made their minds up about used games/game sharing, and its not good news, and god help us but Microsoft need to leave E3 on a high so theyre going to wait a while before talking about it again, even if it leaves us hanging with still unanswered questions.
Thing is, a number of high profile Microsoft peeps have gone on record to say that the issue of DRM will be clarified at E3. Well actually the didnt say, they promised. May be theyre planning to deliver a one-way speech about it, with no room for feedback, within the E3 spot itself. My gut feel is theyre going to not bother, which is only going to anger everyone further. People want to know, they need to know, and if you dont tell them theyre not interested in how shiny and clever your machine is until theyre aware of the full implications of cost and useage limits.
 

Jkrohn1

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I still think Sony have something similar to announce at E3 about used games or DRM
 
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