Xbox One Used Game Fee Makes No Sense In Light of Industry Statistics

While still unconfirmed, it's seeming more and more likely that some sort of used game system will be implemented on the Xbox One. There are rumors that the PlayStation 4 might implement a similar routine, but for the sake of clarity, we'll just cover Microsoft for now.

The current rumor is that the Xbox One will tie games to a specific Xbox Live account. If you were to purchase a used game, you would then be charged a fee to "unlock" it so it could then be re-registered to your own account. If you think this system sounds complicated and expensive, you aren't alone.

What could Microsoft possibly have to gain from ostracizing those who prefer to buy their games used? Well, it's important to point out that neither Microsoft nor the game publisher receives a cent from a used game transaction. That's a big part of the reason that stores like GameStop are able to make that system work.

However, there's an even more interesting figure that makes this Xbox plan sound even stranger. Sales of used games are actually in a steep decline. According to a report from NPD Group, used game sales only account for $1.59 billion of the $14 billion in revenue of the industry as a whole. In fact, as reported by GameIndustry.biz, used game revenue dropped by over 17.1% in 2012.

To put that into perspective, according to its fiscal report for 2013, EA made $1.66 billion in digital game revenue alone last year. In just online sales, that single publisher made more money than the entire used game market.

So clearly used games aren't leading to the downfall of the game industry as we know it. But there's actually an even bigger statistic. DLC and microtransaction purchases accounted for $2.22 billion in revenue in 2012. This equates to a pretty staggering 33.9% gain over 2011.

From these two numbers, we can gather a pretty interesting conclusion. One, used games are not destroying the console market. In fact, they make up a tiny fragment of what a publisher like EA would take in on new game sales, and even that small number is steadily dropping. Secondly, revenue from DLC and online microtransactions are up more than a third from where they were in 2011.

Really what Microsoft is doing here is cutting out a section of gamers who could potentially purchase add-ons and expansions to their used games. Who cares if someone buys a used copy of Call of Duty from a GameStop, if it means they might later be interested in purchasing maps packs.

Even worse, just the fact that a used game fee exists might make consumers think twice about purchasing an Xbox One.

All Microsoft is accomplishing with a used game fee is causing gamers to buy fewer titles. Just because you charge them a fee for used games doesn't mean they're just going to buy the new version instead. Just as likely, they might not buy it all. If nothing else, you're going to see gamers buying far fewer titles, and being much more selective when it comes to trying new things.

A used game fee isn't just bad for consumers, it's bad for Microsoft, and it's bad for the industry as a whole.