Saw this over on NeoGaf

A gamer walks into a retailer and hands over the game they wish to sell. This will only be possible at retailers who have agreed to Microsoft’s T&Cs and more importantly integrated Microsoft’s cloud-based Azure pre-owned system into its own.

The game is then registered as having been trade-in on Microsoft’s system. The consumer who handed it over will subsequently see the game wiped from their account – hence the until now ambiguous claim from Phil Harrison that the Xbox One would have to ‘check in’ to Microsoft’s servers every 24 hours.

The retailer can then sell the pre-owned game at whatever price they like, although as part of the system the publisher of the title in question will automatically receive a percentage cut of the sale. As will Microsoft. The retailer will pocket the rest.

http://www.mcvuk.com/news/read/publishers-to-receive-cut-of-xbox-one-pre-owned-sales-at-retail/0116137

So they are cutting out the little ebay and private sellers making the pre-owned sales an intergrated part of the business.. thats.. pretty genius..

Better than what was speculated until now. Though you're still required to connect online.

"Unconfirmed reports on ConsoleDeals.co.uk suggest that retail’s slice will be as little as ten per cent. That’s a significant cut from what it has become accustomed to from pre-owned sales and more in line with what they would receive from the sale of a new game – hence, the value of the pre-owned market to the retailer is effectively destroyed."

"These same unconfirmed reports also suggest that the activation cost for consumers buying or borrowing pre-owned software will be £35."

£35 (~40 euros) for a second hand game?

And this kills competition from ebay or private sellers so people have to pay what they ask for.

Retail gets ~10% of £35 =£3.5 per game. I'm sure stores will be happy with this improvement.

I have to assume MS and the developer pays to the stores per game they get traded in, otherwise this smells like bankrupcy.

Now the reaining question is how much money they'll pay to people for their second hand games.

Edit - With this they can charge higher prices for second hand games, and with that first hand games can keep a high price for a longer time. At the ned, only the consumer loses.

well cutting off ebay or other online is genius... if it works. they deserve to win this generation (said from a Nintendo fan boy - means a lot)

I bought half my games and sold 2/3 of my games through marktplaats...

UPDATE: Many readers are asking whether the £35 will be additional cost on top of the price of buying the game. No, we believe that the £35 figure – which is not our number, incidentally – would cover the entire transaction. If correct this would leave retail with a cut per sale of around £3.50.

http://www.mcvuk.com/news/read/publishers-to-receive-cut-of-xbox-one-pre-owned-sales-at-retail/0116137

Welp, looks like Gamestop is going to either not support Xbox as strongly now or something.

well too bad for you... now you'll have to deal with the crappy prices at GameMania.. :P

(you should buy from wowhd or zavvi.. takes a bit longer with shipping but worth the price)

This actually really sucks. I assume that a part of the profits will return to the debs/Microsoft which is good (I think... more or less :p ) but they have cut down the private market, the smaller retailers as well as just borrowing games to friends and vice-versa.