Walmart will probably buy low sell low. Sony with streaming? perhaps but not this year. Amazon, i dont think they really want to get into the game market for real they are having a hard time making a profit already. Im a short, and im assuming you are as well, but i dont think any of those will happen. With the Exception of Nitendo scrapping Wiii U. GME will hit the Mid 20s this time next month....Macroeconomic data is not that great to justify the stock premiums anyway
WMT says they are starting next week, so it will be working on the margins right away. You think GME is so much better at trading used games because they've been at it so long? Come on, how hard can it be to understand buying/selling used games. WMT entering the business isn't a dagger in the heart, but it definitely is another wound in a dying beast.
Here is what's fun about being short GME. I just need one of these bullets to hit in the next several months.
- Sony shooting for game streaming. (Big Bullet).
- Walmart buys high and sells low in the used game market.
- Amazon introduces cool new game product.
- Apple introduces cool new Apple TV.
- Nintendo exits HW business.
- Console sales units continue their ugly US decline leading to a sparse 2015 pipeline.
One bullet hits, and we are in the 20s. Two bullets hit, and they are gone.
Your thesis is wrong. Walmart just wants bodies into the stores, they dont care if they lose money doing this. The general consensus is either this A)Gamestop has a monopoly (almost) in the used game market, they either drop their prices and reduce margin B)Risk people going digital. Or hell, they risk manufactures going into a subscription based system.
Lol you know Walmart wanting a piece of the pie and gamers going digital are two different issues right? Walmart is late as hell, but even if they manage to capture 25% of the market share they would be happy. They said some have tried and failed, but nobody advertise this, not many gamers knew. Walmart with all their money can run commercials now and say they are buying and selling used games. If anything, it will force Gamestop to cut prices and lower margins means lower profits and lower stock value. You cant spin this as good news Razor.
as the fool article stated, which I agree with.. to get a piece of the pie that's still left on the plate, and to drive in more sales for hardware, media, etc... and ultimately gain more video gamers as customers.
Sentiment: Strong Sell
Perfect comment on the facts of the situation: shorts using his for another excuse---their attack will be repelled shortly and brutally---
It's the bears who are drinking the Kool-aid on this one. Their arguments have become contradictory: bricks and mortar retailing is dead but watch out ut because WMT is getting into the business.
Basically walmart is admitting there is still a viable market for used physical games. I'd say that news ain't too shabby!
Finally! someone who shares my view. I thought I was the only one who hasn't drunk the cool-aid
WMT just verified that GME has a winner in used games. Won't be until the end of the year for a roll out to be complete ..at least 9 months until they can tell if its working for them (WMT) or not. Just because they offer something doesn't mean they will get the results that they want. GME at this "game" for 15 years I think they have a good understanding of what it takes in the used game market.
Today the market will find one more thing to freak out about with respect to GME: WMT enter the used video game business. Never mind that the bears are convinced that physical games are going to go away, today they will tell you that WMT is going to eat GME's lunch. Yesterday, it was everyone from Apple to Sony to Microsoft to Nintendo; today it's WalMart. Who's next to enter the fray? Pfizer trading Viagra for used discs owned by aging gamers?
Long time followers of GME will recall that BestBuy has tried for years to make a go of it in the used video game merchandise business with limited success. It's a tricky model. A retailer needs to conform with a patchwork of state resale laws as well as understand supply and demand conditions at the individual store level. WalMart's strength is pounding suppliers to extract low costs that are passed on to consumers. Who are they going to pound to death in the used game business? Their own customers? Good luck.
For years, there have been hysterical fears about the doom of GME due to technology shifts, competition, etc. Yet, the company keeps pumping out over $400 million of free cash flow, year in and year out. The demise of GME is everywhere but in their numbers.
Their business is in decline and competition is too high. I warned you all that BBY was suffering due to WMT and WMT was suffering due to AMZN. I warned you "what does that say for GME". I warned that the future was digital and that would be the death of GME. I was rebuffed and told that the bread and butter was made from selling old games. With WMT entering the market selling old games you have little hope now. What do the pumpers have to say now? Bunch of lying losers.
Sentiment: Strong Sell