There will be used games on the PlayStation 4 and Xbox 720

I hear a lot of speculation that there might not be any used games on the PlayStation 4 or Xbox 720. And let’s take a moment to look at that. For Sony or Microsoft to deny access to used games would hurt them more than they would benefit. A lot of people are stuck on the notion that there is a possibility that this could happen and from an economic standpoint this would be suicide. The benefits of no used games on the next-gen consoles is that they could keep the prices of new games up longer then how they are now. Also every game that is sold on either the PlayStation 4 or Xbox 720 the game publishers would get a cut. But these two things are the only benefits amongst a mountain of disadvantages. When you release a new console the sales of the console spikes at the launch and every time the price goes down. Many people hold off on getting the console to save money. This demographic might be less enthusiastic about getting a console were every game you buy there are no used games to save money here and there. Also people might not buy second rate and third rate games and only buy the big box sellers. This would in turn make a lot of the smaller publishers go out of business. And if this would happen then there would be less variety and titles. And we know how the PS3 was when it came out; there wasn’t a lot of games compared to the Xbox 360. So in turn the Xbox 360 outsold PlayStation 3 consoles by a landslide. People don’t want a system with a handful of games because if you would beat all of games in a genre you like then your system is either a DVD/Blu-ray player or an internet browser. Also many of the stores such as GameStop who have over 6500 stores globally might refuse to even sell the next-gen consoles. This is because GameStop makes a lion share of its money through used games. I worked at a computer store in high school and most technology companies give a store such as best buy something to sell for let’s say 300 and they might make only 20 or 40 bucks on it. In 2010 48% of GameStop's profits came from the sales of used video games. The profit margins for brand new electronics in general are very slim and unless you’re a major retailer it’s very hard to make a profit. So if they choose not sell PlayStation 4’s or Xbox 720’s at their stores then this would cut out a large potential market for the new consoles. And the sales at the launch of a system are crucial since game developers might not want to invest money in a game for a system that no one plays. So don’t believe the hype and made up rumors about this whole entire conspiracy theory around used games and the next gen consoles.

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