i would love to see GME buy gamefly. i agree CC is a terrible retailer. compusa went broke, next I would say will be CC. BBY still seems ok but like you say they need to expand into other business models. I wonder which will be first out of business Sears or CC. If not for the stimulus package in the works I would be shorting both.
Retail is basically a noman's zone at the moment. Things IMO aren't going to get much worse as far as stock prices on the whole but it is still too early to jump in. Play the dips and rips I guess..
More like GME buying someone in order to diversify. If CC did the buying, they would likely drive both out of business within 24 months.
Remember that CC had appliances which had/has margins in the 30% range and they couldn't figure out how to make it work. SHC and BBY spanked them into getting out of that business model. Now, their stores look 1/3 empty as they are all too big for the product mixes they carry currently.
CC and BBY both need to figure out what they will do long term to stem the tide of erroding margins in the HDTV market and related items like DVD players.
Also, the market for CD's at retail is virtually gone and both are just jam packed full of them. Most malls can't support record stores anymore because of the on-line revolution.
GME will have a lot of cash in the next 24 months. I'm certain that they will continue to explore whatever options are out there for continued growth opportunities. Their management team is among the best in retail right now. With the current stock incentive programs out there for their teams, they will continue to execute in order to maximize their financial opportunties.
Money is money, right? Why wouldn't they want to get in the business of used games, when as you all proclaim, provide the largest profit margin for GME. I won't buy them there over ebay anymore, but I'm sure there are still some that don't mind getting ripped off and move some business to Circuit City for the convenience factor or whim buying.