360 Console Secondary Market Future

willc23

willc23

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http://www.pcworld.com/article/181993/banned_xbox_360s_flooding_craigslist_eBay.html

According to this article it looks like the secondary market is getting flooded with banned 360 consoles. I don't think this will be the death knell for the used console market, but this coupled with the high failure rate could slow it down for a while. The horror stories of the RRoD kept me from buying used, and now knowing that an unscupulous seller/trader can offload a banned console pretty easily, really shuts the door. I also imagine this will negatively impact the legitimate seller/trader too as buyers will mitigate the risk by offering a lower buying/trade-in price.

However, there is the little voice that says "If the price is right, I might pull the trigger." I believe I could live with a second, non-Live console for the kids. Say $50? Still has the RR issue, and I presume if it is on the banned list no 3 year warranty anymore.

For those of you out there willing to buy a used console what is your magic number?
 
Don't forget though, not everybody uses Live. I haven't used Live in months. I won't get my console banned on purpose, but if it happened, I wouldn't care. Also, many banned consoles do come with 3 year warranties. It's fairly easy to open a console without damaging the sticker.

But I say that for a banned 360, $55. For a non-banned one, $90.
 
[quote name='willc23']if it is on the banned list no 3 year warranty anymore.[/QUOTE]
Could warranty be bought on banned console?

If so, if one would buy warranty separately, would he or she be sent a new console when the current one overheats?
 
That's the problem with the permaban that MS issues -- it effectively takes the 360 and makes it an offline-only system. Which frees the banned user to sell it to an unsuspecting buyer (or to continue pirating games and just not play them online).

Instead of banning the console itself, it should ban the user and not let them make new accounts. Ban by last name/address/phone #/credit card or something. I realize that if someone is pirating a game, they'd likely have no problems faking info for a new account -- but we're getting to the point where it's going to be impossible to sell a used system.

Also, If the number of 1,000,000+ consoles is correct; I wouldn't be surprised if some of the 3rd party warranty companies (SquareTrade, etc) stop offering them on used systems.
 
[quote name='FrankTheFrowner'] -- but we're getting to the point where it's going to be impossible to sell a used system.[/QUOTE]

This is exactly what MS wants. They make money on new consoles, which they don't on used consoles. Also, getting rid of old consoles gets rid of more RROD consoles. The fewer older consoles in circulation, the fewer consoles MS is going to have to repair under warranty. MS is effectively deleting a console from existence, since it won't be used or sold, and forcing the person to buy a new one.
 
Oh yeah, I forgot about the mass bannings. I've been seeing a lot of 360s being sold on Craigslist in the past few days that are cheap and listed as banned, so that explains the flood. I wouldn't buy one at any price, the whole point of a 360 is multiplayer as far as I'm concerned.
 
[quote name='Access_Denied']This is exactly what MS wants. They make money on new consoles, which they don't on used consoles. Also, getting rid of old consoles gets rid of more RROD consoles. The fewer older consoles in circulation, the fewer consoles MS is going to have to repair under warranty. MS is effectively deleting a console from existence, since it won't be used or sold, and forcing the person to buy a new one.[/QUOTE]

If that's the case, then it will only be a matter of time before someone figures out a way to unban a system.
 
Not only do they kick pirates off the network, they also brick the online capabilities of 360s modded for benign reasons and kill the used market. Pretty smart revenue generating move. And given all the things the loyal 360 fanbase has put up with, I doubt this action will have anything but a positive effect on Microsoft's wallet. The interesting thing will be to see if Sony follows suit...
 
[quote name='FrankTheFrowner']If that's the case, then it will only be a matter of time before someone figures out a way to unban a system.[/QUOTE]

They have a way, but it's pretty hard to do, and involves copying the key from another system. The problem with this is that if both systems go online at the same time with the same key, MS will get suspicious. The way I understand it is, once a serial number is banned, it's banned for good. And nobody has a way to generate serial numbers.
 
I got a new 360 during the Walmart deal and was going to sell my used one. Now I'm just sort of waiting it out with all this ban stuff. My console is not modded and not banned, but a lot of people are going to be hesitant to just take your word for it. I see on the GS website that they have the extra $25 trade-in bonus again. Assuming they didn't lower their trade-in price on the 360, I might just trade it there. I really don't want $95 of credit at GS though unless they can give it to me on a gift card which I can then flip.
 
The only people I feel sorry for are the out of warranty people who did DIY fix and were somehow banned. It's become common knowledge not to put an opened/modded 360 online.

However, with the recent $100 deals, and $199 price point; it's not unreasonable (or unwise) to get a new one if you are out of the three year warranty.
 
You are assuming that no one will want the banned mod system. There are people looking to buy a banned system because they dont care about online
 
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