As all the video game fans out there knows that PS4 and XBOX ONE are being released in November of 2013, just in time for the holiday season. Microsoft (MSFT) new upcoming XBOX ONE is going to be released of retail price at $499.99, which is $100 more than the SONY (SNE) PS4 at $399.99. As a consumer, I believe it is going to be the biggest competition in history in gaming industry.
In November 2005, Microsoft released the last XBOX iteration, which increased GameStop’s (GME) market value by 50% by the time PS3 was released. In the following year, GameStop’s it’s shared price has doubled! Not only GameStop has increased in share prices and market value, GameStop has also increased it’s stores more than 2100 locations mainly in North America. Now for this year’s big two upcoming consoles, GameStop is “expects profit in the coming quarter to be up to 45 percent from the year-earlier period. If history is any guide, GameStop is in for a wild ride.” GameStop CEO Paul Raines said ““There are no other retailers on the planet that are prepared for this kind of opportunity.” Markets such as Amazon, Ebay, & Target will not stand a chance with GameStop in this winter.
Earlier in the summer of 2013, Microsoft has announced many statements about the XBOX ONE which made many fans to reconsidering in buying the console when it’s released. Microsoft stated that they will cut off the “used game policy,” which means that once the game is being used to the system, you are not allowed to trade the games back to GameStop like XBOX 360. By doing this, it will affect majorly on GameStop’s business and cause decreases in selling and reselling old games. There are many other major issues such as “24 hour check in.” which is a way of protecting against piracy within a system where games are fully installed, instantly launched and sharable with friends digitally. Another big issue is the price, which is higher than the PS4.
Due to tremendous fans complaining about the policies, Microsoft’s PR department was not happy with the results. Don Mattrick, President of the interactive entertainment business at Microsoft said “Xbox One will also no longer restrict used games, and will instead allow discs to be exchanged in the same way they are on Xbox 360. There will be no additional restrictions for trade-ins or lending games to friends. The system is also no longer be region locked and all downloaded games will function the same way whether your console is connected or not. These changes will impact some of the scenarios we previously announced for Xbox One, the sharing of games will work as it does today, you will simply share the disc.” By doing this, As a consumer, I am now happy again and I will considering into buying XBOX ONE when it’s released.