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Sony’s Pre-owned Game Blocking Technology Patent Causes a Fall in GameStop Stock Prices

Posted on January 4, 2013 AT 03:45am

GameStop’s share price dropped six percent yesterday in the wake of news breaking regarding Sony’s recently patented pre-owned game blocking technology.

The technology tags an individual game when it is played, and then could potentially restrict it to a single console or account–rendering it useless as a pre-owned game. This could mean bad news for video game retailers who rely heavily on the pre-owned games market.

GameStop’s shares dropped $1.57 to $24.09 following the news. Michael Pachter of Wedbush Securities tried to keep investors happy by stating that it would be unwise for Sony to implement such technology. “Sony would be materially hurt if its console blocked used games and competitor consoles from Microsoft and Nintendo did not,” he wrote in a note to investors. “We think the reaction is overblown.”

Would you end up skipping certain games if Sony implemented the tech, or would you still buy just as many? Let us know in the comments below.

Matthew Bennett, Associate Editor
Matthew Bennett finally got his big break with EGM three years ago, following years of volunteer work for various sites. An ability to go many hours without sleep and a quick wit make him ideal for his role as associate editor at He often thinks back to the days when the very idea of this career seemed like nothing but an impossible dream. Follow him on Twitter @mattyjb89. Meet the rest of the crew.

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