AUG. 20, 2013 • One of the features the Xbox One will not ship with is built-in backward compatibility with Xbox 360 titles. Microsoft Corp.’s solution is for consumers to play their last generation games separately on an Xbox 360, or plug the older console directly into the new Xbox One via an HDMI port. Amazon.com has seen an opportunity in this situation. Knowing that many gamers will wait until the Xbox One’s fall launch to purchase major new titles, the retailer is making it an inexpensive proposition to trade in a selection of eight recently released Xbox 360 games for their Xbox One counterparts. For anyone who has purchased the Xbox 360 versions of Assassin’s Creed IV Black Flag, Battlefield 4, Call of Duty: Ghosts, FIFA 14, Madden NFL 25, NBA 2K14, Need for Speed Rivals, or Watch Dogs, Amazon will take them in trade for the Xbox One versions at $10 each. The way the promotion works, on taking the trade-in Amazon will pay $25, plus an additional $25 promotional credit. The $10 is the difference between the credits and the $60 list price of Xbox One titles. The promotion is good through December 31. In related news, Microsoft has announced that consumers who pre-order the Xbox One in Europe will receive systems that include digital versions of EA Sports’ FIFA 14 at no extra cost. Microsoft has not disclosed whether a similar pre-order promotion will be available in non-European markets. Microsoft did confirm the following Xbox One launch day titles:

Assassin’s Creed IV Black Flag (Ubisoft, Ubisoft)
Battlefield 4 (DICE, Electronic Arts)
Call of Duty: Ghosts (Infinity Ward, Activision)
Crimson Dragon (Grounding/Land Ho!, Microsoft Studios)
Dead Rising 3 (Capcom Vancouver, Microsoft)
FIFA 14 (EA Sports, Electronic Arts)
Fighter Within (AMA Ltd., Ubisoft)
Forza Motorsport 5 (Turn 10 Studios, Microsoft Studios)
Just Dance 2014 (Ubisoft Paris, Ubisoft)
Killer Instinct (Double Helix, Microsoft Studios)
LEGO Marvel Super Heroes (TT Games, Warner Bros. Interactive)
Lococycle (Twisted Pixel, Microsoft Studios)
Madden NFL 25 (EA Sports, Electronic Arts)
NBA 2K14 (Visual Concepts, 2K Sports)
NBA LIVE 14 (EA Sports, Electronic Arts)
Need for Speed: Rivals (Ghost Games, Electronic Arts)
Peggle 2 (Popcap, Electronic Arts)
Powerstar Golf (Zoe Mode, Microsoft Studios)
Ryse: Son of Rome (Crytek, Microsoft Studios)
Skylanders: Swap Force (Vicarious Visions, Activision)
Watch Dogs (Ubisoft Montreal, Ubisoft)
Zoo Tycoon (Frontier Developments Ltd., Microsoft Studios)
Zumba Fitness: World Party (Zoë Mode, Majesco)

Impact: Amazon is nothing if not wily. What can be promoted as a thoughtful overture to consumers left behind by Microsoft actually benefits the retailer in several ways. First, Amazon has the potential of selling the Xbox 360 version of these games twice. Second, the retailer has a way of driving trade-ins on major console titles to itself rather than GameStop or other competitors. Third, on those 360 titles that Amazon sells new, and again used, the retailer is not out much monetarily. Selling a new Xbox 360 and Xbox One title separately would net Amazon a total of $120. Even though the retailer is paying $50 to buy back the 360 game, it can turn around and sell it for between $30 and $40. Assuming that trade-in is then sold for $35, the $10 a consumer pays for the Xbox One version brings Amazon’s total take on two physical products to $115. Amazon comes out looking like the good Samaritan while staying very close to its normal profit margins.

Microsoft’s FIFA 14 pre-order deal on the Xbox One in Europe is a savvy play. Outside of the United Kingdom, the Xbox brand is not dominant. Sony’s PlayStation has a long history of acceptance in Western Europe that is a challenge for Microsoft to assail with a product that can be perceived as too American media-centric for Continental tastes. This combined with its high price point is why DFC Intelligence has forecasted that the Xbox One is likely to really struggle in Europe.  But FIFA is huge in Europe, and the prospect of securing an Xbox One at a pre-order discount, as well as have FIFA included, will get some attention. The only downside is that Microsoft will now be under pressure in other launch markets to do the same. Given that this a digital bundle, we are curious how much EA Sports gets paid for every one of the European pre-orders sold – the latest wrinkle in this digital distribution age.