Sony pre-owned games block patent sees GameStop stock drop
GameStop's stock has taken a hit following news that Sony has filed a patent for technology that could block pre-owned videogames
Gaming retailer GameStop has seen six per cent wiped off its share price after news emerged yesterday that Sony has filed a patent for technology capable of blocking pre-owned games.
The technology, which 'tags' games with data about whether they've been played on multiple machines or ties them to different user accounts, could potentially be used to block console owners from playing second-hand games. While the patent doesn't specifically name any plans for any device, it is possible it could be used in Sony's next generation PS4.
Following news of the patent, GameStop shares were sold off, causing the retail chain's stock price to plummet by $1.57 to $24.09.
Gaming industry analysts, however, have moved to counsel against overreaction to Sony's patent filing. Wedbush Morgan analyst Michael Pachter said in a note to investors that he felt the reaction was overblown.
"Sony would be materially hurt if its console blocked used games and competitor consoles from Microsoft and Nintendo did not," Pachter wrote in his note.