Gamestop stocks suffer with Xbox Game Pass announcement
Gamestop is reeling from a serious drop in investor support after Microsoft announced its new Xbox Game Pass program. The program, for those who don’t know, is similar to what EA/Origin Access currently has: By paying a monthly subscription, you have unlimited access to a library of several games.
Considering a huge share of Gamestop’s profit is made directly by the sale of used games, it’s not hard to imagine why the Game Pass, which pretty directly subverts the need to trade in or purchased used games, is having an effect. To be exact, Gamestop’s shares quickly dropped about 5% following the announcement.
While the Game Pass may be harmful to the used games industry, it doesn’t seem like it will be a killing blow. Keep in mind that the Game Pass, at launch, will only support about 100 games. While this may be much more than EA/Origin Access has in its “vault,” it’s only going to make a dent in the library that used games supplement so frequently. Only time will tell just what kind of lasting impact, if any, this service will have.Further reading: Gamestop, Microsoft, Xbox Game Pass, Xbox One