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Gamestop Shares Drop 6.5% As News Of Sony's Pre-Owned Patent Hits Stock

And analysts weigh in.

Yesterday’s discovery of Sony’s anti-second hand games patent appears to have reached a wider audience, with shares in Gamestop dropping 6.5% yesterday as the news started to spread around the internet.

Gamestop do a huge amount of business with pre-owned games, and whilst nobody really expects Sony to actually make use of the patent (which is only filed, not granted, as far as we can tell) it’s telling just how quickly these things can have an effect.

Shares fell by $1.57 to $24.09.

The patent, which suggested an alternative way to lock down a copy of game to a single user account via RF tags, would have serious repercussions in the rental and second hand game markets. However, like region locking and countless years of discussion on the topic, these things may never really happen across the board with Sony.

Indeed, SCEA’s own Jack Tretton said he was against the blocking of used games, although hinted that Sony Japan may well feel differently. The patent was filed by SCEJ.

It’s likely that, if this does appear in the PS4, it’ll be on an individual basis, with some publishers able to opt-in with certain games, rather than being a widespread platform-level thing. You can also assume that Sony won’t do much unless Microsoft do the same.

“Sony would be materially hurt if its console blocked used games and competitor consoles from Microsoft and Nintendo did not,” said Michael Pachter of Wedbush Securities, who says the reaction to the patent was “overblown”.

What do you think?

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11 Comments
  1. bigbaldwolf
    Member
    Since: Mar 2012

    It may have been overblown and I can’t see Sony implementing this as it would be suicide but the share drop should serve as a warning that the market will not react kindly if this actually happens. These shares dropped on news of a patent. Imagine how much they would drop if it Sony announced they were going to do this.

    Comment posted on 04/01/2013 at 10:10.
  2. Bilbo_bobbins
    Member
    Since: Jun 2009

    I think its a patent and people love to make a bit of money from rumours.

    Comment posted on 04/01/2013 at 10:12.
  3. LTG Davey
    andUandU
    Since: Aug 2008

    As most people said yesterday, if either Sony or Microsoft decide to scrap the idea of pre-owned gaming they are going to lose a lot of buyers. I get that the industry is haemorrhaging money at the moment but punishing the consumers who just want to enjoy their hobby isn’t really the way to go about sorting the problem.

    Comment posted on 04/01/2013 at 10:14.
  4. jimmy-google
    Member
    Since: Feb 2009

    You’d be mad to be the only one releasing a console block second hand games. In Japan they may get away with it with the Xbox being so ignored but Nintendo haven’t gone down that route. There are still questions about whether this would even be legal in certain territories.

    Some of the technology could be useful for things other than blocking used games but the reaction to patent application has been completely over the top.

    Comment posted on 04/01/2013 at 11:16.
  5. hazelam
    Member
    Since: Feb 2009

    hopefully sony are looking at the reaction to this patent and realise how bad an idea it would actually be to put it into practice.

    Comment posted on 04/01/2013 at 11:18.
  6. JBoo
    Banned
    Since: Oct 2011

    This comment is hidden.

    Comment posted on 04/01/2013 at 11:31.
    • bigbaldwolf
      Member
      Since: Mar 2012

      Ok you need to go away, calm down and the re post this in a way that is readable

      Comment posted on 04/01/2013 at 12:05.
      • cnutard
        Member
        Since: Apr 2011

        Shouldn’t that just read;

        “Ok you need to go away.”

        Comment posted on 04/01/2013 at 14:08.
  7. xdarkmagician
    Member
    Since: May 2009

    I think this is exactly what Sony was hoping for. This stock price drop is a temporary thing. It might even have a little something to do with the fact the holiday sales rush is over with, but if it gets contributed to Sony’s patent its a win for Sony. Gamestop knows how important used game sales are, its probably the reason most game stores can afford to stay in business. Having the stock price drop could be an incentive for some negotiations for gamestop and Sony to strike a deal that benefits all parties. IMO this tag lock is Sony’s atomic bomb, its lets stores know that at any time Sony could kill the entire used game market, but without retail game stores the only place to buy Sony stuff would be from the Sony website, because the retail stores could just refuse to sell Sony products. Wich would damn Sony for using it.
    IMO we’ll see more online or locked content for next gen games until the digital game becomes mainstream to where a physical copy is no longer wanted. Theres no need to tag lock a disc because eventually the disc is going bye-bye. Publishers would be better off just waiting it out and except that their sales numbers could always be higher.

    Comment posted on 04/01/2013 at 17:33.
  8. Broonba
    Member
    Since: Mar 2009

    Can’t see Sony utilising this if the patent is granted. Sony would be shooting themselves in the foot if they did…….although knowing Sony, anything could happen.

    Comment posted on 04/01/2013 at 17:55.
  9. damoxuk
    Member
    Since: May 2011

    This is more of a patent hoarding I should imagine.

    This only really benefits Game Publishers, Console makers however need to sell systems and that means making everyone happy – Retail/customers etc.

    Chance of this being implemented (at least day 1 is less than 5% i’d say). A stat I made up just like analysts :D

    Comment posted on 04/01/2013 at 18:56.

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