Microsoft bow to video gamers

microsoftJune 2013 has been a tough month for Microsoft. In May 2013, Microsoft unveiled its Xbox One. What came with the announcement surprised everyone. It announced that every game for Xbox One has to be tied to its original owner through the Internet. Gamers all around the world revolted at the suggestion. GameStop, the world’s number one used games retailor not only surprised at Microsoft’s decision, it would have been a death nail for the retailor. It would have stopped its disc swap practice and stopped re-sale of used games. Under mounting pressure, Microsoft in June 2013 reversed its previous decision. Learning from the Microsoft’s mishap, Sony did not introduce such a restriction when it announced its upcoming release of PS4.

The analysis of 2010 financial report of GameStop indicates that it earned more than 30 percent of its $2.4 billion total revenue from sales came from used video game sales. In 2011 the same generated more than 27 percent of total revenue which delivered more than 47 percent of its profits. For GameStop, used video game sales earn more sales and profits than new games and sales of hardware. At the end gamers will be rewarded from new direction from the Microsoft.