Retailers who benefit massively on used game revenue like Gamestop might suffer due to Sony’s anti-used games patent.
We reported earlier how Sony has patented a new tech that suppresses used games, and as soon as the news reached the stock markets, Gamestop’s shares fell by over 5%.
Gamestop makes a massive profit on used game sales, as much as $2 billion per year, and such a thing is not good news for the company and the investors know that. Here’s what Michael Pachter, an analyst at Wedbush Morgan, had to say about the patent, in a note to investors.
“Sony benefits little from a unilateral decision to block games. The company’s first party software sales represent less than 10 percent of overall sales on its consoles, and it is unlikely that blocking used games would result in a lift of more than 10 percent in new game sales. That means that Sony’s sales would rise only marginally if the PS4 blocked used games,” his note read.
“Sony would be materially hurt if its console blocked used games and competitor consoles from Microsoft and Nintendo did not.”
He also had a bit more to say about the Sony patent. He believes any company going ahead with this will face the wrath of consumers and such a thing is not in their favour.
What do you think Sony should do? Let us know below.