The rumors that the Next Generation of Xbox console is going to be an always-connected system in order to do away with pre-owed or used games has not gone unnoticed at GameStop. Not surprisingly, the video game retailer has commented that they believe the decision to block pre-owned games on the console would reduce consumer demand for the console. It is no surprise that most analysts, as well as your friends here at Fudzilla, agree that this is a no brainer.

While we can understand the desire by both hardware manufacturers and the software publishers to want to curb or even eliminate used games, the reality is that the costs we are talking about are more than most video gamers can really afford. If users are only able to play the new games that they can afford to buy new at $60 per release, gamers are also going to own fewer games; the result will be that software sales are not going to go up.

Another business to also be affected by the decision is the used video game rental business. While we have not heard anything specific from GameFly, who is the leader in through the mail game rentals, we are sure that the possibility of no longer being able to rent games for the new Next-Generation systems can’t make them the least bit pleased.

We still can’t help but think that if Sony elects not to block, we can’t see Microsoft blocking, either. If it ends up, however, that one system is blocking pre-owned games and the other system is not, this could be single handedly the biggest sales advantage in console gaming history; and could spell the quick death of the other console.