NPD reported weak software sales again last night. Delayed reaction to used game margin hit. Ongoing concern over EA Access, PS Now, and any number of other digital related news. Take your pick.
Exactly, panic selling on stupid news----people want the newest games Call of Duty, Grand Theft Auto, Madden, Halo etc.... These games are not going to be given on a monthly subscription period! Excellent time to get back in at lower price, earnings will be good this won't effect anything. Plus GME actually will sell the stupid access cards for EA. EA should not #$%$ off GME, never bite the hand the feeds ya!! Peace out Mikeyboy. I was a buy now with lower price, thxs shorts I am a strong buy!!!
Sentiment: Strong Buy
EA subscription service a ST sentiment risk not fundamental
We are reiterating our Buy rating on GME following the news today that EA is rolling out a beta for a new subscription based gaming service for the Xbox One (similar to the PSNow). An official launch date has not been announced but the service will be available for $4.99/month (or $30 annually) and only provides access to four titles from last year (more to be added in the future). The service also offers a 10% discount on digital content and the ability to preview games before release.
While the EA announcement caused a 6% drop in GME shares today, we view it as another example of a headline that pressures the share price short term (i.e., MSFT's used gaming in May .13, WMT's used gaming in March .14 and PSNow in January .14) but ultimately is not a fundamental risk to GME. This is based on: 1) The service does not include new releases and we believe it will not, given the low price of the service (typically 70% of a games sales are realized in the first month; 2) not all gamers can use it due to infrastructure constraints (such as bandwidth); 3) the discount offered for digital content is below trade in value for a game and the discount offered for digital season passes at GME; and 4) we see limited impact to the used business as we believe customer crossover is limited. Also recall last week that EA called out the importance of GME in driving digital and physical content.
Reiterate Buy as strength of cycle and GME underappreciated
We reiterate our Buy rating and $56 PO on GME as we continue to believe that it is the best positioned player to leverage a strong gaming cycle that is still in the early stages. GME has already gained significant share in next gen categories and we expect strength to continue.
"The sweetest part of the deal are the included game trials, as you'll be able to demo select EA games up to five days before release and keep your saved files if you decide to buy the game." (tomsguide)
Also... :New program gives you unlimited access to Battlefield 4, FIFA 14, Madden NFL 25, and Peggle 2; more games to be added in the future." (gamespot)
-sigh- / ... win for GME longs looking to buy at a little discount. Amazing how many non-gamers think they understand what gamers actually want. Googling a bit may give you a better view of how it's being received by gamers. I recommend doing so.
Now, someone remind me... didn't Best Buy announce something that was going to tank GME, too? Or was is Wal-Mart?
Who cares? This is about GME's used business. It will cripple it for EA's games. And if the sub participants buy digital thanks to early access, that's even worse for GME - lost sale and lost used game churn.
apparently a lot of people missing the second to last paragraph of the blog posting where it says:
"Soon, fans of GameStop will be able to purchase their EA Access membership in local retail stores. GameStop and Amazon will also carry EA Access memberships for Xbox One gamers across Europe, as well as EB Games in Canada"