Blocking Used Games is Crap says Business Dude

by Gunner Eleven

Adam Sessler (right) interviews Michael Pachter (left) for Rev3Games

"The used games thing is absolute crap!"

That's what Michael Pachter said to Adam Sessler on the YouTube channel Rev3Games during an interview at GDC (Game Developers Conference) 2013. Pachter, a senior research analyst for Wedbush Securities, said the "always-on" feature for the next Xbox is an experiment akin to the Kinect peripheral that launched a few years ago. It could have the same results.

"No one could figure out why they needed [Kinect], but they did it anyway...and people bought it," Pachter explained.

Video Game blogs and news sites heavily reported on the "always-on" requirement for Microsoft's next-gen console. Pachter said that it will limit the number of people that can have one, and that blocking used games isn't a smart move either.



"It's odd... it's possible," Pachter, an expert in investment and financial strategies, said. "It limits who can have a box. You can't have one in the garage that can't get to wi-fi."

Even though seemed odd to Pachter, he said that "always-on" could be a sign of a new direction for Microsoft. The Xbox may no longer be a gaming-driven device according to Pacthter. He is often cited in major news publications like the New york Times and Wall Street Journal and said that Microsoft's recent acquisitions means the next Xbox will be a broadband entertainment device.


Pachter is notorious on social media and web forums like NeoGaf where he's usually the subject of criticism. During the interview, Pachter talked about Microsoft's $8.5 billion purchase of Skype, the VoIP service, hybrid peer-to-peer and client–server system. The web-community has attacked Pachter for his claim that Skype will be a killer app for the next-gen console, nicknamed Durango. But Pachter insisted, that unlike Sony, Microsoft see's Durango as a 50-50 split between media and gaming services and the skype-from-tv feature will be a selling point for families.

(The interview from GDC 2013 is embedded below. Also, visit Rev3Games for more news and content)



Microsoft hasn't been shy about their desire to make the Xbox the bridge that brings the Home PC into the living room. It's not enough to have a family gaming device that sits under your cable box or media player, they want the Xbox to be the only device in the living room.

Pachter went on to predict that the new Xbox, due to arrive this fall, will be subsidized by internet service providers such as Verizon and also cable companies.  The subsidy would allow Microsoft to sell the Xbox at a discounted price around $99 but would require a subscription to either the ISP or cable company.  Pachter suggested that this will entice legacy console owners to make the upgrade.

The next Xbox is shaping up to be a device that is everything to everyone. While Pachter gets paid to make predictions, he's not always right. But if you look at the growing number of media apps appearing on the current Xbox it doesn't take a Wall Street analyst to predict that we'll probably get more with Durago. But to get more, you will need to be "always-on".


source: Rev3Games.com


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Gunner is a Florida native with a background in public affairs & journalism. He has also worked as a technical writer and policy analyst for the Department of Defense.  A gamer for over 25 years, Gunner enjoys NFL simulators, First-Person-Shooters, and the occasional pirate-themed game. He also likes making cake pops with his daughters.