I sold a large portion of my position this afternoon as I have seen this stock take big swings and I don't particularly care to lose my recent gains. I anticipate the reported numbers will be mediocre at best and would love another opportunity to purchase cheaper shares going into strong period of the year.
This analyst says investors are expecting a $100 cut to the PS3, $50 off Wii, and the 360 Elite to drop to $300. He also reckons it won't have the same stimulative effect on console demand that previous price cuts have had, because of the current pressure on consumers.
With a 20% move in 9 days it seems like the market has priced in Sony giving away PS3's for free.
I choose the first one. This stock just does not hold gains after earnings, no matter how good. Especially if the bottom line is great due to used sales and software sales and cost cutting, while the top line misses. Even though GME can actually grow the bottom line while the top line stalls and even slips, they simply don't get credit for it, at least in my experience here that has been the case.
price cut has been rumored for over a year now, I think that (even though it has never happened) is heavily factored into the price, although I think you will get a nice daily pop if/when the news is announced, as GME tends to overreact to any news.