When you boot up your Xbox Series X and head to the Microsoft Store to buy a game, it’s natural to think that once the transaction is complete, you’ve acquired ownership of the title. However, that assumption would be incorrect. You effectively invested in a license to engage in the activity without letting emotions cloud your judgement. Licenses may be revoked by firms at their discretion. Although rare, this phenomenon does happen, often affecting older video games; a prime example is Ubisoft’s recent move, which drew attention when it delisted and subsequently decommissioned the popular racing game in December, effectively terminating access to online features and ultimately revoking its licensing agreements. Licensing vs. Owning a sports vehicle becomes increasingly complex when considering what happens to your prized possessions upon death – a challenge exacerbated by the fact that, according to many insurance companies’ policies, it is not possible to transfer ownership of one’s license to another individual upon passing.
California Governor Gavin Newsom has signed a new law (AB 2426) aimed at increasing transparency in the buying and selling of digital goods, including movies, e-books, and video games. California Assemblymember Jacqui Irwin introduced the legislation, partly in response, following her discussions with. While the proposed invoice may not fundamentally alter the fact that consumers are essentially licensing digital games rather than owning them outright, it will nonetheless prompt companies operating in California to provide greater transparency regarding their practices. Companies adhering to industry standards align with Microsoft through the Microsoft Store, Valve via Steam, Sony’s PlayStation Store, Nintendo’s eShop, and independent publishers operating their own platforms, such as Ubisoft’s Uplay.
GameFeeds has attempted contact with all previously listed companies; at press time, no further responses had been received.
The new regulatory framework is expected to come into force on January 1st. The Federal Trade Commission proposes clarifying guidelines for e-commerce platforms, mandating that firms explicitly indicate whether they’re selling licenses or granting unrestricted ownership interests in digital goods when using phrases like “buy” or “purchase”. This notice must be distinctly separate from other terms and conditions of the acquisition, as per the proposed bill. The regulation excludes subscription-based services, free download options such as demos, and companies offering perpetual, offline access to digital assets. Companies violating these guidelines are likely to face financial penalties.
“California has taken a pioneering step by sending AB 2426 to Governor Newsom, effectively acknowledging that the use of phrases like ‘purchase’ and ‘buy’ by digital media retailers to promote digital media licenses constitutes false advertising.” “Consumers worldwide must acknowledge that digital purchases of movies, music, e-books, and video games are at risk of vanishing without warning.” Significant progress remains to be made in safeguarding consumers’ digital interests, yet AB 2426 represents a crucial milestone on the path forward.
As physical media becomes increasingly hard to find, digital buying has become the norm. Retailers such as Best Buy have largely ceased showcasing physical movies for sale, and it’s likely that more stores will follow suit. Bodily video games utilize the disc as a licensed copy, and that disc belongs to you. Despite this, organizations may still choose to take servers offline, but entry is by no means guaranteed.
