Microsoft's next game console, Xbox 720
Xbox 720 to be code named as Durango.

The rumours surrounding the launch of Microsoft and Sony's next-gen gaming consoles have been gaining momentum for some time now. One of the key reports, in this regard, is the possibility that neither console will allow used games to be played.

"Those rumours are so stupid as to be laughable," Michael Pachter, an industry analyst and Managing Director at Wedbush Securities, said in a reply to a question on the subject, according to Game Informer. Furthermore, Pachter believes neither rumour makes sense since it is a divisive issue that could only give an advantage to the competition. Simply put, if any one console does not support used games then the other will immediately gain a huge advantage.

"Unless you believe in collusion - unless you believe that all the console manufacturers are going to get together and scheme to screw the consumer, and at least in the US we have laws against that, so probably none of them would do that - then if one of them did that unilaterally (any one of those things), the others would say, 'Hey wait a minute, we have a disc drive. Ours will play used games. Buy ours instead of others. It is not happening. Not even a prayer of that," added Pachter.

The rumours have also been discredited by Paul Raines, the Chief Executive of GameStop (a video game retailer in the US), who was quoted on Pnsoker.

"We think it is unlikely that there would be that next-gen console because the model simply has not been proven to work. Remember that used video games have a residual value. Remember that GameStop generates $1.2 billion (£754 million) of the trade credits around the world without used games model. So consider taking used games out of that, you would have to find a new ways to sell the games and our partners at the console companies have great relationship with us," added Raines.

However, there is also a contrary report - by Kotaku - which suggests Microsoft has plans to incorporate an anti-used games system for its next console. Gamers should be cautioned though that there is as yet no information on how such a system might work.