Microsoft Introducing Serial Key Locked Console Games With Xbox 720?

If you haven’t heard the internet chatter, Microsoft is working on the next generation of Xbox, believed to be called the Xbox 720. I think they should just take the plunge and go 1080 but heck that’s just me.

New reports are coming out of multiple sources suggesting that when Microsoft introduces this new gaming console it’s not only going to have a ton of bells and whistles but it’s also going to introduce serial key locked console games.  This news is coming out of gaming site Kotaku.

With mounting pressure coming over piracy concerns and the game studios losing profit share to recycled game giants like GameStop, Microsoft is said to be testing games that are serial locked like software.  According to TMCnet this serial locking could work like Microsoft software does where you must have an activation license to make the game operate on your console.

Kotaku was able to get a statement from Microsoft:

More after the break
“As an innovator we’re always thinking about what is next and how we can push the boundaries of technology like we did with Kinect. We believe the key to extending the lifespan of a console is not just about the console hardware, but about the games and entertainment experiences being delivered to consumers. Beyond that we don’t comment on rumors or speculation.”

If the rumors are true than as the hardware manufacturer Microsoft feels it’s their duty to lock down their systems to protect the intellectual property rights of their game studio partners. While I remember taking my good ole Atari and Coleco cartridges over to a friend’s house to play, those days may be over which could come back to bite Microsoft in the bullocks should they be the only game system manufacturer to implement a serial key locked system.

Some game developers, like Activision are proactively working to force more game purchases. Take their mega hits Skylanders for instance. With the Skylanders game they’ve saturated the market with secondary toys that can be played cross-platform on multiple systems including Wii, Xbox, PS3 and Nintendo DS. The only caveat is that each household needs to buy their own copy of the game.

There may be more creative ways to heavily encourage buying individual copies of games rather than just locking games down with a serial key.

What’s more is that stores like GameStop contribute to the bottom line for hardware and even software when the latest titles come out. Such a small percentage of users actually modify their systems to play pirated games that the serial key locked software is actually viewed as an attempt to discourage resellers like GameStop who rely on the recycled model to increase margin.

If Microsoft takes the ability to trade and re-sell games away that will affect their bottom line on new games sold as people will think long and harder about whether or not they want to buy the title in the first place.

source: TMC