Oh ok.

How will Gamestop retaliate.  They are a drop in the bucket compared to Microsoft.  Gamestop isn't even profittable at the moment BEFORE this announcement.  Gamestop is in trouble.  We all knew it anyway, physical media will be phased out in this next generation.

No it wont. Consoles dont have the space needed to support a generations worth of games. They still need the discs. 

They are "allowed" in the form of you need to pay full price to activate them on your account. The disc for the XBO are only used simular to those pre-paid cards.

This is via Phil Harris the corporate VP of Microsoft.

http://kotaku.com/you-will-be-able-to-trade-xbox-one-games-online-micros-509140825

They are allowed, you just have to pay a fee before you can play any used game. You cant lend your friends your games either.

Used games are allowed. they have yet to mention how it works yet though. All they have said is that they have a system in place for used games, and trading games, and that there will be some fee. They have not said how it will work or how much the fee is or how often you need to be connected to the interent.

You can play your games at a friends house, with no fee, as long as you are logged into your xbox live account.

So we still need more info until we know how it works.

http://www.youtube.com/watch?v=Y508_rXPogQ

Microsoft interview with Adam Sessler.

here is what Gamestop has to say about it:

"“Both Sony and Microsoft have said games can be resold and that’s exactly what we anticipated,” said Bartel, who added that GameStop puts $1 billion in trade into the market and 70% of that money goes back into new game sales. “It’s a recognized way to make these games more affordable. All three new platforms understand that.”"

"Bartel was able to watch a livestream of the Xbox Reveal. He loves the power of the Xbox One and how Microsoft is enhancing the entertainment system, but making the console gaming-centric. He believes the simplicity of the Xbox One, which offers Instant Switching between gaming and other entertainment and Web surfing, will be a key selling point for next gen consoles this fall."

http://www.forbes.com/sites/johngaudiosi/2013/05/21/gamestop-president-tony-bartel-talks-xbox-one-playstation-4-used-games-and-pre-orders/

Seems like he is fine with news. With out knowing how they will do the used games, rentals, or sharing of games its hard to say how things will go down. But MS has a good partnership with redbox (redbox on demand is a partnership between MS, Verizon, and Redbox), MS has also always been in good standing with Gamestop. I doubt they would burn their relationships by making used games not an option. I hope they do things right. I will wait for final judgment until we know how they will do everything.

There is a lot of conflictiing info out right now. Phil Harrison has said some stuff, Neilson has said some stuff, I guess Matt Bootly has too. Since not all the info matches up and they all work for MS its hard to say what is accurate and what is not. All we know is that as a company MS has not announced how the used games works and until they do its hard to make a decision on it.

Then they will learn from consumer response once they buy an Xbox One product. The fees better be reasonable because everywhere you go with your disc outside of your account you will have to pay.