Robert W. Baird & Co. Incorporated analyst Colin Sebastian offered his E3 Expo wrap-up report to investors, saying the Sony's PlayStation 4 was the clear winner at the trade show which ends in a few hours.

Sebastian said that after meeting with multiple publishers and evaluating all of this year's E3 press conferences, his firm remains cautiously optimistic on the sector. He said that platform holders still need to offer a compelling reason to upgrade, and a clear value proposition for mainstream audiences.

When asked by CVG if Microsoft plans to change course on its "connect once a day" requirement and policy on used games for Xbox One, Microsoft executive Phil Spencer said that his company's stance on those issues is fixed and "definitive" - at least in the short term.

Nintendo of America president Reggie Fils-Aime said that if game developers and publishers are worried about used games cannibalizing new games then they should simply make better games. He also said that it is important to support the used games market because the sale of a used game usually goes towards the purchase of a new game.

The best way for console makers to deal with the used games market is to ensure their games are so good that people don't want to trade them in, he told Polygon. But supporting used games is also important, he added.

EA Labels president Frank Gibeau said during an Electronic Entertainment Expo analyst call today that the company is formulating a customer-friendly strategy for used Xbox One and PS4 games based on information released by platformer holders Sony and Microsoft.

Gibeau said the secondhand market has "certainly been a topic of discussion this week" and that his company is still digesting the information revealed earlier in the week. He promises a more definitive statement on the topic at a later date.

Legendary Nintendo designer Shigeru Miyamoto says that used games are less of a concern than the elephant that has always been in the room: piracy. Speaking to CVG Nintendo's most prominent and prolific game creators said that piracy is a bigger threat to his company's business than the used games market.

Sony's message on used games and DRM has been pretty consistent company wide during E3, which is something of a miracle, because when you get too many executives out in the wilds talking to the press, usually one or two of them inserts a foot into an open mouth. The latest to say something that gamers will appreciate is SCE Europe boss Jim Ryan.

Polygon's Colin Campbell pulls no punches in an excellent sit down interview with Electronic Arts' chief operating officer Peter Moore.

As I have indicated multiple times when discussing Microsoft's new system to enable or disable used games on the Xbox One, most publishers don't seem to have a clue about this new tool Microsoft has put in place for its console. At first we simply assumed they were playing dumb to avoid revealing too much prior to E3, but as more developers and publishers talk openly about the topic, it seems that they don't know an awful lot about it.

While Playstation 4 gamers will not have to worry about Online Passes for Sony's first-party games, it appears third party publishers are free to employ used game DRM as they see fit.

Earlier today a story based on a GamerTrailers TV interview with Sony's Jack Tretton circulated saying that Sony would not do anything to stop third-party publishers from implementing their own DRM system for used games.

Entertainment Consumers Association (ECA) President Hal Halpin offers his insights on video game ownership - a topic that has caused cheers for Sony and jeers for Microsoft at E3 in Los Angeles this week.

Prior to Sony announcing its policy on used games during its E3 Expo 2013 press event, Ubisoft CEO Yves Guillemot said that his company had not made a decision on how it will handle used game trades in the next-generation. Guillemot said that he had not decided yet if it would use the system Microsoft put in place for Xbox One.

"What I like is because they are not taking a fee, it will give us the option to look at what service we have to give if we have to give service," Guillemot said recently. "So it's a good thing Microsoft is not taking a fee."

While some may believe that Sony somehow decided at the eleventh hour on its pricing and policy on used games and connectivity, Sony VP of Worldwide Studios Scott Rohde told Polygon in an interview earlier Monday night that the company hadn't changed any opinions or strategies in response to Microsoft's Xbox One plans.

If Sony's jabs at Microsoft at its E3 2013 press conference don't irritate executives in Redmond, Washington tonight then this hilarious video from Sony will. In it, two Sony Computer Entertainment executives demonstrate how you share games on the PlayStation 4 in one simple step. Sharing on the Xbox One is a bit more complicated...

Ouch.

Get-Well Gamers Foundation President Ryan Sharpe joined millions of other gamers in the community praising Sony for its stance on always on and used games (revealed during its E3 Expo press conference tonight). In case you didn't know, Get-Well Gamers is a charity that gives games and game systems to children's hospitals around the world.

DVD and video game rental company Redbox has launched a website to encourage consumers to discuss Sony and Microsoft's rental policies for games on their respective next-generation consoles. Microsoft and Sony are set to host their E3 press conferences later today. Microsoft has already indicated that it will let publishers decide if used games can be used on the console, but Microsoft has not indicated how the new system will handle rentals.

Wedbush Securities analyst Michael Pachter does not believe that third-party Xbox One game publishers will disable used games using the system Microsoft has put in place to do just that on its next-generation platform. Pachter goes so far as to say that any publisher that disables used games runs a serious risk of significant backlash or boycotts from consumers. In a note to investors today, Pachter said the majority of publishers will not block used games in the system's first few years.

Ars Technica taps the expert legal knowledge of Electronic Frontier Foundation (EFF) Intellectual Property Director Corryne McSherry to answer the question "Is it legal to stop people from selling their used games?" The answer will not be well received by those hoping that it would be an emphatic yes.

Colin Sebastian, senior equity research analyst covering Internet and interactive media for Robert W Baird & Company, offers some interesting opinions on E3 next week including yesterday's revelations from Microsoft on used games. In a note to investors the firm says that Microsoft's clarification on used games is a mixed bag for GameStop, raising concerns about publisher discretion and how it will impact GameStop's used games business.

Showing that at least a handful of news outlets are chasing the truth on Microsoft's new system that allows game publishers to shakedown consumers on used games, CVG, GameSpot and MCV have collectively contacted ten high profile third-party publishers to ask if they plan on using the new system including Bethesda, Activision, Capcom, Take-Two, Namco Bandai, Electronic Arts, Sega, Square Enix, and Konami.

Got Xbox One questions?

Of course you do.  Microsoft's messaging since its console unveiling has been a confusing mess.  Does Xbox One require an internet connection to play offline?  Does it block used games?  Can the all-seeing eye of the Kinect be turned off?

According to a new study by marketing professors Masakazu Ishihara of the New York University Stern School of Business and Andrew Ching of the University of Toronto’s Rotman School of Management, if the used games market were to completely disappear it would cause a decline in profits for publishers. The only way that publishers could gain momentum in such a situation would be to lower retail prices on games, the study said.

According to analyst Colin Sebastian from equity research firm Baird Equity, the trade-ins on current generation console software and hardware has the potential to generate an estimated $2.5 billion in credit at retailer GameStop (to be used on next-gen consoles). Sebastian came to this conclusion after speaking with executives at the specialty retailer to discuss how it could diversify sales through the pre-owned and mobile markets.

The #PS4NoDRM campaign that bombarded Sony executives with messages on Twitter not to include DRM schemes for used games in the PS4 earlier in the month let us know this morning that they are ramping up for a second and final push of their message on Wednesday, June 5th starting at 8AM EST / 5AM PST/ 1PM GMT.

Speaking to an audience at the Cowen Technology, Media, and Telecom Conference this week, Take-Two CEO Strauss Zelnick describes Microsoft's plan for a licensing fee on used games as "punishing consumers," and makes it sounds like his company is not in the loop when it comes to getting some of that licensing fee on Xbox One games.

While Xbox 360 fans fret over possible used game licensing fees and a console that may or may not require you to always be connected with Xbox One, Sony fans have taken to twitter to bombard Sony executives. Recently fans took to Twitter to urge Sony not to use those same techniques for the upcoming PlayStation 4 console.

Using the hashtags #PS4NoDRM and #PS4USEDGAMES, consumers have sent messages to Sony executives pleading with them not to implement any kind of usage restrictions on the PS4.

We're not sure how much stock you should put into this news, but we're putting it out there anyway because Microsoft has been so dodgy on the topic since it announced the Xbox One.

While Microsoft is being a little bit cagey about how it will handle used games on Xbox One, GameStop is trying to reassure consumers that next-generation games will be able to be bought and sold. Speaking to Forbes, GameStop president Tony Bartel explained why having the ability to buy and sell games is important as consoles transition.

Ryan Sharpe from Get-Well Gamers Foundation posted a statement on Facebook condemning the way Microsoft plans to handle pre-owned titles. We have extensively detailed the confusion on that topic here. Sharpe says that this idea of a fee on used games is an alarming trend that bothers him so much the he has decided that he will not include Xbox One systems and games in the inventory of games for the 180 hospitals in its network.

Microsoft's messaging on how used games will be handled on the Xbox One seems to be muddled, contradictory and confused as different individuals within the company offer out-of-step messaging on the subject. At issue is a report in Wired indicating that when software purchased on discs at retail or through the Xbox Live Marketplace is installed on a system it is associated with the purchaser's user account.