The Xbox One was officially announced earlier this week and with it came a firestorm of confusion thanks to Microsoft’s inability to explicitly say how the used game market will work with their next-gen console. Now, according to MCV, who spoke with retailers who were purportedly briefed on the matter, Microsoft plans to implement a control system that might destroy the used game retail market.
So how will it work? First, Microsoft will require that retailers agree to their terms and conditions, as well as implement their cloud based Azure pre-owned system into their own. When a customer trades or sells a game, it will be entered into the Azure database, where upon Microsoft will remove the gamer’s authorization from their Xbox Live account. Once that’s been completed the used game can be resold at the retailers discretion. However, once that game is resold, both Microsoft and the publisher will both receive a cut of the used game sale, which to a large degree is said to negate much of the retailer’s margin.
If Microsoft follows through with this plan, it could very well lead to the demise of their gaming division, as the PS4 would draw not only a larger customer base, but retailers that will promote the system since it will be in their best interest.