GameStop's (GME) shares were hit Wednesday as traders latched on to an updated rumor related to the Microsoft (MSFT) Xbox and whether the next version of the console might not allow for the playing of used titles, instead mandating new games and a constant connection to the Internet.
If true, the concern would be that the game seller could suffer because it does a sizable trade in used games, buying them from players and then reselling them in its stores, where they make up a not insignificant part of its revenue. In the well-known Wall Street tradition of panic first, ask questions later, GameStop lost 6% to $25.20 on almost three times the normal daily volume. At its worst, the stock had dropped 11.4% to $23.75 before mounting a partial recovery.
However, GameStop's position is that gamers don't have inordinate interest in an approach that would force them toward online play and away from products on the shelf and in the sales bin.
"We are excited about the potential of new consolesRead More »from GameStop CEO: Our Customers Want Used-Game Option