Wed, Feb 06, 2013 | 15:57 GMT

Xbox 720 games tethered to one console, require online code activation – report

Xbox 720 games will require online activation via bundled codes, in a bid to combat piracy of physical titles. This fresh claim comes from the pages of EDGE, which states it has spoken with sources at the heart of the matter. We’ll believe it when we see it of course, but the evidence – as always – is yours to judge for yourself.

The EDGE, the report comes from what it calls, “sources with first-hand experience of Microsoft’s next generation console.”

The piece states that Xbox 720 titles will come on 50GB Blu-Ray discs that will use activation codes” over Xbox Live.

It’s a new form of authentication they say, one that will render discs with “no function beyond the initial users”, essentially blocking the possibility of pre-owned re-sale. Digital versions of games will also be made available over Xbox Live.

This stacks up with what VG247 has heard from our own sources back in April. We’ve heard that the console will launch in time for Christmas 2013, will include Blu-Ray drive and will require an always-on net connection to authenticate titles. Read our full report on the matter here.

The report follows claims that PS4 will use NFC tech to scan and lock games to a single console. We reported on the tech patents here.

Pre-owned does dent software sales, but on the other hand consumers are used to having rights that allow them to re-sell their purchases. What do you make of the conundrum?

152 comments

#51

orakaa
06/02/13, 2:26 pm

@45: on 360, perhaps… but on PS3, piracy was really minimal (I don’t even know if it is possible, but I guess it is, where, on 360, it is far more accessible).

#52

Kabby
06/02/13, 2:29 pm

Sick of entering activation codes with your joypad?

Don’t worry consumers! You can simply scan the barcodes in with your Kinect instead.

Kinect sold separately. RRP £200.

#53

mistermogul
06/02/13, 2:29 pm

Only the video game industry try to stop you doing something that you are legally entitled to do – sell your own belongings.

It’s freaking ridiculous.

#54

ninjanutta
06/02/13, 2:36 pm

@51 ps3 piracy is far bigger now,you can pirate the complete psn and dlc also all games and even unban the ps3 from online if you get caught.
all with full online play etc,the ps3 is hacked to bits now im afraid

#55

PEYJ
06/02/13, 2:45 pm

@54

It is also possible to pirate the entire Sony corporation. In fact, I have Sony sitting right next to me, as I write.

#56

Samoan Spider
06/02/13, 2:48 pm

Talk about biting the hand that feeds. There goes GAME again. They thrive on used sales. I think I am the same as a lot of people in that for consoles, I will by a few games new, then periodically chop them in for another selection of new games and the cycle continues. My PC is different. I accept the no-trade side of things but I don’t resent it because I can get most games at a drastically cheaper price than for my consoles. I have a family and a car and plenty of bills, so spending £40 when I wont see any return on that simply will not happen any longer and if this crazy notion gets confirmed I’m afraid I’ll be out of the next generation. As a gamer who enjoys playing games no matter the platform, its a shame but I will be PC only.

Edit: Will they ever learn? The piracy arms-race is about to jump a notch

#57

orakaa
06/02/13, 2:50 pm

@54: it is not. PS3 piracy is NOT mainstream.
Amongst my friends and network I know people who have their iPhone/Android phone, PSP, DS, Xbox360 hacked, etc… I know NO ONE who has their PS3 hacked, even amongst my journalist friends who are quite aware on the subject.

I am not saying it’s not possible: I’m saying it’s minimal, and definitely not as easy or not as much of a problem as it is on other consoles.
IF (that’s a big “if”) Microsoft AND Sony are stupid enough to do this, it would not be (at least for Sony) because of piracy, but because they would want more money.

But their reasoning is limited as most gamers (including myself) sell their old games (which become second hand games) to finance new purchases.

#58

manamana
06/02/13, 2:51 pm

Could be that it’s their last chance to backup the tremendous developing costs for Game companies. Could also be, that they are digging their own grave. Physical medium equals not digital downloads. If they only lower the prices but I fear that the opposite will take place and more microtransactions and day one DLCs will progress.

The sky is darkening and I can hear thunder in the distance…

#59

Docker Al
06/02/13, 3:00 pm

I only buy new but those purchases are often funded by trades,so I’ll buy less games. Simple. Sadly it’s the new IP’s like ‘Sleeping Dogs’and ‘Dishonoured’-games I’m not sure about-that will be the casualties. Happy to take a chance when I’m selling off games I no longer play.

#60

orakaa
06/02/13, 3:02 pm

And for the comments stating that doing so will lower prices… Look at what happened so far regarding downloadable games (I’m not talking about PSN/Xbox Live Arcade games but boxed games made available digitally).

They keep it at full price, with only minimal reductions months or year after release.

If they “kill” second hand games, they kill specialized retailers like GAME, etc. and Sony/Microsoft will totally own the market and fully control the prices. Meaning NO price reduction, or even worse, probably an rise in prices.

#61

matirishhh
06/02/13, 3:02 pm

If this is true people will stop buying games on release days and leave it until price drops by 60%. We can all blame STEAM, they started that sick idea, that is why I don’t buy PC games anymore. Days of worldwide piracy are coming. Let’s hope SONY stays sane.

#62

nhowell14
06/02/13, 3:04 pm

Supposedly Microsoft is going this route due to their new version of Windows PC (AKA copy apple’s every move strategy) to create a standard for the windows platform and will be merged with the Xbox platform (why they just bought Dell) due to name-brand recognition, cause common lets face it, if it isn’t Apple it doesn’t really sell. Or so that’s how Microsoft sees this playing out. This already happens on PCs, why it’s such a surprise Microsoft would bring this to their console to the people who already pay an additional $60/year just to access netflix or Hulu or play online to begin with, is just stupid. Microsoft has a habit of bleeding their customers dry with half-arsed products.

While this anti-used games may hold some merit for the Microsoft console, Sony has purposely made the PS4 as developer friendly as possible in order to level out the rising costs of game development.

But again, we may in fact see the Wii U or the Valve steambox as the only viable gaming options this time around and Sony/Microsoft may go the way of Atari/Sega. It happens sooner or later ya know. I think Nintendo just can’t die at this point. Pokemon, Mario and Zelda are stupid strong IPs EVERYWHERE, wheras the PS3 mostly has Japan/ some Europe/some US and the 360 mostly has the US/some Europe hence them being dead even almost in terms of sales, even though the 360 had a full year head start.

I’m mostly never wrong people. I have found my personal instincts to be far more accurate than Patcher ever thought about! hahahahahaha!

#63

daytripper
06/02/13, 3:06 pm

The more I hear about the next Xbox, the less desirable I feel about it, looking for a official announcement soon

#64

Iliad
06/02/13, 3:07 pm

I don’t think triple-A game sales will really be too affected by this, but anything less than “excellent” will suffer.

I also suspect pre-orders will drop across the board as more gamers will wait to see the various reviews before pledging to buy a game with no resale value that they don’t desperately need.

Like many I sell my unwanted and finished games to fund towards new purchases, and often those are perhaps not triple-A titles, but games that I fancy trying, knowing I can recoup a good percent of my original cost by selling on.

I will most likely be buying half as many games if this does come to pass, or waiting for certain titles to drop below an acceptable threshold before buying.

#65

freedoms_stain
06/02/13, 3:11 pm

@62, there’s a big difference between “Microsoft buying Dell” which didn’t happen, and “Microsoft loaning Michael Dell and associates $2 billion to take Dell private (in a $24 billion deal)” which did happen.

#66

tmac2011
06/02/13, 3:11 pm

it will be so stupid if this happens…..

#67

nhowell14
06/02/13, 3:15 pm

@#65 so you really do think Microsoft is this big nice company that floats loans to it’s friends? Don’t think so bud, there’s something a little deeper that they get in return.

You’re talking about a company thats charging $600+ for their ipad competitior when it still isn’t comparable. That’s sad considering I think of the ipad as just an oversized ipod.

#68

DrDamn
06/02/13, 3:17 pm

@63
“the less desirable I feel about it”

Ummm, ok… :)

#69

Samoan Spider
06/02/13, 3:23 pm

I know there’s people that said it already, but those that are hating on MS for this rumoured ‘feature’ of the new system, you are possibly missing the logic that MS can’t do it without Sony doing it. So I would wait and see the other side of the coin before assuming that Sony are the good guys here. Otherwise, why would devs even consider the PS4 to sell their games if MS has this great environment where they can sell sh*tloads of games and not have to worry about losing money through used game sales? Doesn’t make sense does it.

#70

DrDamn
06/02/13, 3:24 pm

On the whole activation thing. I doubt they would go for always on DRM, but connection needed to activate once bought? Yeah I can see them doing that.

@53
“Only the video game industry try to stop you doing something that you are legally entitled to do – sell your own belongings.”

And app purchases on tablets/phones, and digital music, and digital video …

Part of the point is that what you want to sell on can be exactly the same thing as you bought, i.e. digital products don’t degrade like a physical object would, and hence the value to the purchaser is the same. The other point specifically to do with games is that there can be on ongoing cost to the publisher for each future sale in terms of online support/servers etc.

I’ve got sympathy for the devs/publishers, but I want to see a general reduction in prices due to reduced distribution costs though. Part of the reason for current prices is factoring in second hand sales. So if they take that out they need to pass some of it on.

#71

Phoenixblight
06/02/13, 3:25 pm

@69

PS4 was the first one announced with this “feature”. I also see this as both console manufactures doing it or none at all.

#72

RandomTiger
06/02/13, 3:26 pm

I’m not sure they will be allowed to do this in the UK. Aren’t there laws against this?

#73

DrDamn
06/02/13, 3:28 pm

@71
Sony patented a process, they didn’t announce anything. Sony also patented a similar process prior to PS3′s release.

Not sure I follow your second point. If they have both “announced” it then why don’t you see it as both or none?

#74

Phoenixblight
06/02/13, 3:31 pm

@73

announced = rumored which these both are.

#75

viralshag
06/02/13, 3:44 pm

@72, The same thing pretty much applies to retail PC games, why would it make a difference on the hardware?

PC gaming, for as long as I can remember, always had a code you entered. Around 10 or so years ago is when shops stopped the trade in/returns of PC games.

#76

OlderGamer
06/02/13, 3:47 pm

Removing second hand games from running, will prolly just require you to buy an activation code. Tho maybe not. I am not for second hand sales, just fyi. I believe their should be laws in place that require retailers to pay a % of the sale of used games to the liscence holder on each sale.

However. In the Console market space, it has to be reconized that a huge % of games sold, consoles purchased for, and online gamers, and DLC purchases are because of used games. If Gamestop sells 60% of their games as used…give some thought to what happens to the online comunity numbers if that 60% is removed?

Also, don’t buy the company line here. Removing 60% sales as used games, won’t increase new game sales by 60%.

The end result should be somewhere in the middle, less over all game sales, more over new sales, and less people playing each game(online or offline).

Some games generes could also be adversly effected. For example I know people that almsot never buy a Single player game at launch. They wait for the price to drop.

I would also like to point out that when Gamestop gets swarmed with a popular game being sold back to them, they often drop the price of the used copy to reflect inventory. Esp if the game has been out a few years, like sport games for example. No used sales means that the prices will be set by the pubs/platform holder. I doubt the prices will fall, they will stay high over a long period of time. Pubs don’t see the falling value of older titles.

Now, I am also a heavy PC gamer. And I love Steam. Hypocrite? No, I don’t think so. Because there is so much variety on Steam(and PC in general). You are not stuck with pricy big budget AAA games. MS has already announced they will be shuttering XNA suport. And reports have them not including Indie games next gen on Live. That removes a cheaper alternative to buying games. Something Steam does NOT do. Plus the fact that Steam runs their sales. If I want(and I often do) I can buy games on Steam for 50%, 66%, 75% and more off of the price. Meaning when I bought Witcher one I did so for about 3usd. My brother inlaw just bought the entirerty of Civ V for about 15usd(including the expacs and DLC).

Something MS will have a hard time matching.

#77

Samoan Spider
06/02/13, 3:49 pm

@75 Its been around a long time for PC gamers and we’re used to it to a degree, but with systems like Steam and Origin you have the ability to shift devices and still play the games you own. This sounds a lot like a product is tied to one system until the license is shifted like current gen DLC. Whilst there’s no law here to stop it happening its not going to be good for anyone who does play in several locations.

#78

viralshag
06/02/13, 3:54 pm

@76, I still don’t understand how buying a game for next to nothing in a Steam sale is better than buying pre-owned. The Witcher 1 for 3 USD, which valve will still take a cut of… That 2.75 USD will probably never make it back to the dev either.

@77, Like I said, I think it will be account linked but with regards to a console, other than taking your disc and/or console from one location to another, I don’t see what new problems this system would bring. After all, it’s like if I buy a newer version of the 360, I just transfer everything over to that and away I go.

However, if your account is locked to one machine and you can’t “guest” in at someone elses it would be a problem.

#79

Bill_E_Talent
06/02/13, 3:56 pm

Gamestop shares will tank if this happens, they would have zero incentive to stock nextgen consoles.

#80

Phoenixblight
06/02/13, 3:57 pm

@78

Steam takes 30% off the top and most sales are them removing their own cut before removing the portion they pay to the publisher.

#81

PC_PlayBoy
06/02/13, 3:58 pm

Some idiots need to stop comparing this to what’s happening in PC gaming.

1) There is no licence fee to pay on PC, therefore games are cheaper. On consoles you need to pay MS/Sony/Nintendo.

2) The PC is an open platform. One can buy digital games from many outlets i.e. Steam, GreenManGaming, Amazon, Origin, GameFly, GOG, GamersGate, etc, etc. Thus creating low priced games and stiff competition.

Consoles are dictated by MS/Sony/Nintendo, you can only buy your games from their stores PSN/Live/eShop, therefore there is no competition and prices remain forever high.

3) On consoles there will never be a online store that you can visit, like GMG, pre-order a game and get it for almost half the price.

4) On PC stores sell DRM free games, like GOG. This would never happen on consoles.

5) MS/Sony/Nintendo will never, ever match any of the above due to their ancient business models.

#82

DrDamn
06/02/13, 4:01 pm

@76
“You are not stuck with pricy big budget AAA games.”

XBLIG =/= XBLA Titles. XBLA Titles have been huge this generation, are you really suggesting MS are ditching them and just chucking out AAA releases?

#83

Fin
06/02/13, 4:02 pm

@81

Can I resell my Steam/GOG games?

#84

viralshag
06/02/13, 4:05 pm

@80, I would think their cut is taken off for sales but even so. In a Steam sale offering 75% off, which a lot of PC gamers probably wait for knowing these days it’s inevitable, still means they need to shift 4x the amount of copies to make their original target price.

Surely there’s going to be a point when you ask why you pay full price in the first place for digital games, even on the PC? They’re only £10-15 cheaper normally than the console retail version.

@81, Unless you can comprehend the actual comparisons being made to PC gaming, please pipe down.

#85

PC_PlayBoy
06/02/13, 4:08 pm

@83

The games wouldn’t be worth selling as they were bought so cheap in the first place.

On a side note: You should stop playing games because it’s inevitable the whole industry is going digital.

If you’re that concerned with re-selling shit….then stick with board games!

@84

You comprehend nothing. it’s only denoted in your brainless posts.

#86

viralshag
06/02/13, 4:10 pm

Point proved…

#87

PC_PlayBoy
06/02/13, 4:13 pm

Console gamers need to wake up. This was always going to be inevitable on their platform. Sooner or later.

#88

viralshag
06/02/13, 4:16 pm

Listen, stop being so angry about the console industry dictating the PC platform. Stop crying about it.

#89

manamana
06/02/13, 4:18 pm

@87 talking about brainless posts: why don’t you just go back to where you came from?

#90

OlderGamer
06/02/13, 4:18 pm

“XBLIG =/= XBLA Titles. XBLA Titles have been huge this generation, are you really suggesting MS are ditching them”

Who is ditching who?

Most XBLA games are also on Steam…and at lower prices.

Keep in mind what worked for this past/current gen isn’t just a shoe to start working on the next set of hardware. Things are different now. There is going to be stiff competition going forward. Several new systems are launching. And as for XBLA games, not only are they on steam, but they are going mobile. Basicly same game, larger user base, cheaper to dev, I think a lot of experimentation is going on.

There have a lot of rumblings going on about how poorly it is to work with MS as an Indie/Arcade and the return on investment is also poor.

Just saying, don’t assume arcade games will be a major part of the equation. Unless you like Kinect Arcade games. Go look at the recently released list and their time lines for XBLA.

#91

PC_PlayBoy
06/02/13, 4:18 pm

@88

More delusional gobshite from you. You’re like the mental patient that doesn’t know they are mental…lol

#92

PC_PlayBoy
06/02/13, 4:19 pm

@89

viralshag’s alt account speaks…

#93

Ireland Michael
06/02/13, 4:20 pm

@91 You do realise your point would be very better made if you didn’t resort to petty name calling in every second paragraph?

#94

viralshag
06/02/13, 4:20 pm

@91, Sorry, I’m trying to read between the tears but you’re making it really difficult.

Like I need an alt account…

#95

Cobra951
06/02/13, 4:21 pm

At least your name is honest. Well, maybe change “play” to “troll”.

A code activation, while it still irks the hell out of me, would not be a complete barrier to entry for me (like a forced constant connection would be). It’s still a mistake, if it happens. Everything reported at this point is a rumor.

#97

manamana
06/02/13, 4:24 pm

@PC_boytoy please, don’t confuse me with Viral. You are the one trolling every second console thread.

#98

Ireland Michael
06/02/13, 4:25 pm

Cretins? Really?

#99

viralshag
06/02/13, 4:26 pm

@95, Despite not worrying too much about an “always-on” system as I actively try to avoid ever being offline when it comes to gaming at home (which is pretty much the only place I do game), I do think that would be the bigger problem for me.

@97, No need to sound THAT offended. :P

#100

manamana
06/02/13, 4:28 pm

:-D

Leave a Reply