Gamestop stocks suffer with Xbox Game Pass announcement

1 min. read

Published on February 28, 2017

published on February 28, 2017

Readers help support Windows Report. We may get a commission if you buy through our links.

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.

Radu Tyrsina

Radu Tyrsina has been a Windows fan ever since he got his first PC, a Pentium III (a monster at that time). For most of the kids of his age, the Internet was an amazing way to play and communicate with others, but he was deeply impressed by the flow of information and how easily you can find anything on the web. Prior to founding Windows Report, this particular curiosity about digital content enabled him to grow a number of sites that helped hundreds of millions reach faster the answer they're looking for.