Changes coming to trade-in market?

Report: Retailers to pay cut to platform holders and publishers.
Text: Mike Holmes
Published 2013-05-28

It looks like Microsoft are aiming to completely redefine the trade-in retail market with the launch of Xbox One, and reports are emerging that Sony plans to follow suit with PS4.

The platform holders are reportedly keen to recoup money lost from the resale of second-hand games, with both companies, along with individual publishers, potentially set to receive a cut from any games traded in and subsequently resold by retailers.

When we questioned Microsoft's Phil Harrison at the Xbox One unveiling last week, he simply told us: "What we've said - maybe we haven't said it clearly enough - is we are working on a solution. We will have a solution, we're just not ready to talk about it in detail today so please stay tuned."

This lack of clarity, exemplified by this answer, has caused speculation to go into overdrive, with several theories springing up across the internet.

A plausible scenario suggests that Microsoft's new system will, according to retail sources close to MCV, allow gamers to trade-in used games to retailers (but only those who have agreed to Microsoft's terms and conditions). Licenses will subsequently be wiped from the user's account, allowing the retailer to sell the game on to another customer.

Microsoft, and the individual game's publisher, will take a percentage of the transaction, leaving the retailer to pocket the rest (which could amount to as little as £3.50).

Unconfirmed reports on ConsoleDeals.co.uk state that retailers will be forced to sell games at as little as 10-15% cheaper than their full-priced counterparts, with second-hand games reportedly set to be sold at around £35.

Retailers may also be only able to claim roughly 10% of the overall sale, significantly less than they're able to currently generate from second-hand sales at the moment.

In response to the speculation Major Nelson posted a very vague statement: "Over the past 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.

What elements of the reports are inaccurate, and which are incomplete, are yet to be clarified, and the statement doesn't address any concerns that gamers and retailers have regarding how the new system will work.

Microsoft told MCV: "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."

It's safe to say that the days of lending games to your friends are numbered, unless of course you're prepared let others use your gamer profile.

A more recent report, this time from GameTrailers, suggests that Sony could be set to follow Microsoft and implement similar measures, although nothing official has been announced in that direction.

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