Has everyone been noticing the big news from nintendo- Wii system, Zelda, Sony PS3 coming at 4th quarter, Microsoft xbox 360, new HD dvd for the holidays 10 million 360's to market before the sony or nintendo systems hit, grand theft auto 3 and Halo 3 to xbox 360...Can you imagine what GME will do?? The trades will shoot threough the roof to prepurchase the systems and games, watch the juggernaut roll............ come on 4th quarter.
Anyone worried about this talk of Nintendo's new game download service, like itunes? First of all this is going to make all those used NES, SNES, N64 games etc worthless. So what ever inventory GME has in those, you will be able to write that off. Second, what if they start a service where all games can be downloaded? The hard drives on these new systems just get bigger and bigger.
Don't get me wrong, GME is going ot see a big boost from the introduction of new consoles but I imagine that is pretty well factored into the pps at this point.. What might not be factored in is the possibility that nintendo's much cheaper console may be stealing market from PS3 and XBOX 360. I for one will be buying a Wii, but I have always been a sucker for Nintendo.
I have no position in GME, but that gap looks enticing in the short term. I may short on monday for a quick ride to around 40. Long term I might wait till christmas or so to really get bearish on GME.
When was the last time you were in a Gamestop and saw NES or SNES?? They carry old product but they have to get rid of the oldest product lines to make room for the new/used of the upcoming consoles. They already stopped taking back n64 and ps1 a while ago, they are ahead of the curve on this one (also, the people buying these ancient systems usually do NOT have the funds to purchase a computer to download the games). Their may be a couple stores that they ship the oldest product lines to liquidate but that is it. Just like I said before, their buying/selling used merchandise model is the best in the industry. The customer base buys most if not all of the systems and they use their old stuff to pay for a portion of the new systems. Keep your eye on the long ball.....