Earlier this morning, we reported on a rumor of the next-generation Xbox to require an Internet connection for it to remain functional. The move would be a direct threat for the used game market, which is currently dominated by GameStop and also gains half of its profits from the sale of used video games.

The news of this rumor has spread across the Internet like wildfire, and as a result, GameStop’s shares have dropped substantially, down as much as 11.4 percent today, which is their biggest drop since May 17. As of this writing, GameStop’s shares seem to be leveling off at at $25.20 per share, which is still a big drop from its $26.81 recorded at yesterday’s closing.

The idea that next-generation consoles will no longer support used games is one that has been talked about for a few years now, although no console maker has made the effort of directly attacking the used games market. PC gamers have been forced to redeem their physical purchases with CD-Keys and online DRMs, although piracy has run rampant for years, which is why such a system is necessary.

Making an effort to curb the sales of used games is one that will make or break a console as there are many gamers out there who would prefer to buy a used game for a fraction of the cost, rather than spend over $60 for a new title.

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