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GameStop Corp. Message Board

  • danielwilkins21 danielwilkins21 Nov 6, 2008 11:46 AM Flag

    Why GME is recession-proof

    I'll provide three arguments:

    1) Video games are consumer *staples* to hard core gamers:

    Some gamers actually die (in real life) from exhaustion playing video games. This is sad and pathetic, but a fact--i won't put in links, b/c that would be a bit cruel. Like putting links to cancer patients on a Philip Morris discussion board--that said, gaming is highly addictive, offers a form of escapism, and even community. Gamers won't stop gaming anymore than gym rats will stop going to the gym, or teenage girls will stop talking on their cell phones.

    2) GME is part pawn shop.

    Pawn shops are a great business in a recession. People trade in what they have to. Some gamers, who might otherwise hold onto their recent purchases (e.g., GTA IV, or COD4) are more likely to trade it in to get the newer games, thus giving GME more newer, used games. I put in another post that I bought Resistance 2 *yesterday* at my local GME. I got a $5 discount for the new game, and if I beat the game within a week, I can return it for free, and get something else.

    3) The Wii is expanding the customer base

    ...particularly to soccer moms. They bring in a lot of money buying games for their kids, and now that they want Wii Fit, they are seeing the benefits of shopping at GME, trading in, speaking with knowledgable staff, etc.

    Most people here know this...but expect this to come out in the next conference call, analyst reports, news articles...etc.

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