GameStop stock takes hit following Xbox One used game story
Microsoft's plans for the used games market on the newly announced Xbox One were a roller coaster ride this afternoon, with GameStop being the one to lose its lunch on the ride. The company's stock started an immediate dip once the news began to circulate that the console wouldn't support used games, closing the day down five percent (down -1.98 to 36.78/share).
Microsoft issued a statement after the market's close regarding Wired's report, stating the news wasn't accurate, but wouldn't detail exactly how the information was incorrect.
"It doesn't help Microsoft to block, and will alienate consumers. They should stay out of the controversy," said Wedbush Security analyst Michael Pachter who attended today's reveal of the new console at the Microsoft campus. "It is a dumb idea for Microsoft to get involved."
He continued, "They could just as easily invalidate a download if the same disc is subsequently downloaded to another Xbox One, and the seller of the game wouldn't complain. The article reaches a conclusion without foundation, and was irresponsible."
As of this posting it's still unclear what Microsoft's plans are for the used games market. GameStop's pre-owned video game products represented $2.4 billion in sales, making up 27.4 percent of the company's revenue and $1.1 billion (48.1 percent) of company's gross profit in the previous fiscal year.
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