Survey shows 1 in 3 people in the USA do not have broadband. that does not bode well anytime soon for downloadable games becoming a replacement for DVD based console games.
"Huh,long term holders did not buy at 19 and most will not sell until stock reaches 24-25 range."
I think Lionel is a perfect case to counter that assumption. Long term holder from much higher prices, sold out gradually including at $19. How many people bought in the $50's when management were putting out rosy guidance they never met (and they were selling their own shares into that phony guidance)? Or the $40's, $30's, even $20's? Maybe they need to raise capital, maybe they see safer investments elsewhere, maybe they want the tax loss, whatever the reason there's nothing to suggest they will all hang on hoping to break even some time in the future. Remember at these prices, nearly everybody who bought GME in the last 4 years is underwater, while GME's future looks less clear today than at any time in the last 4 years.
"I also believe that with better comps this year and Natal, we will finally see some positive news. IMO the publishers and GME will rebound as their stocks are reaching lows while general market has clearly done better. Why buy Amazon near its high when issues such as sales taxes are a concern?"
Agreed, and I think AMZN are crazy expensive, however if the market rally fades on sovereign debt concerns, recovery concerns, jobs concerns, you name it, then speculative stocks with little earnings (the pubs, except ATVI) and those with questionable business models (GME) will also suffer. If they haven't participated during the rally, they certainly won't during a sell-off.
This further goes to show that the age of DIGITAL DOWNLOADS is at least one console cycle away and maybe further. As is the case with the PSP GO, people do not want to download everything. It leaves them with NO resale value. The publishers want to have a flat rate for game releases, but yet they know not giving the freedom to the consumer to do what they want with the game after the re-play value is a big risk.
I am fine with paying $4.99, $9.99, etc for DLC if I purchase a pre-owned game from Gamestop. What I am not fine with is being told that I must download everything and spend hours upon hours (not to mention bandwidth) in the process. Instant gratification is alive and well, thank you. And there will be a day soon where bandwidth is actually restricted thereby limiting the process of digital delivery even more.
Speaking of instant gratification, how about downloading a game in half an hour in the comfort of your own home, while doing something else perhaps even playing a different game, compared to driving through a winter storm to get to a store, which hopefully has it in stock, then driving back home through the winter storm.
"Instant gratification is alive and well, thank you."
As a matter of fact I think instant gratification involving smaller purchases is even more prevalent in a bad economy. Consumers who simply cannot afford major purchase items and are frustrated with their overall financial position will lose patience very quickly if entertainment requires considerably more effort/time.
I think alot of gamers are probably doing this, DLC a copy with a physical backup on the shelf. No telling how long a downloaded digital version will stick around (or the company you "bought" it from) when you want to play it 2 years from now and you just re-formatted your hard drive.
That's what I've been thinking, but no one here has said squat about the effect broadband might have.
As if there weren't anything called cloud computing. I guess they don't know what a dumb terminal is either...
The funny part is, it probably won't happen because it's too empowering and that gives voters the upper hand. Corporations are against that, so they're going to take broadcast TV away instead of releasing broadband.
But most people who play video games do have broadband, so what's your point? You guys are really pulling straws to find any bit of info and try and make it positive. Kudos for trying but you still don't get it do you? Do some DD (you do know what that means?) and you will see. As a rule of thumb good stocks go up not down. Good stucks make new highs during mkt highs not new lows as GME tends to do. NEW 52 week lows coming... Don't say you weren't warned.
"As a rule of thumb good stocks go up not down."
I am in no way sticking up for GME, but the above part of your argument makes no sense. "Good" stocks hit 52 week lows all the time and certainly do not always go up.
if you don't have broadband you are either poor, living in the early 90's, or very old. Definitely not a gamer. I am willing to bet that over 90% of people who own a current generation console have broadband. You are clutching at straws on this one.
Yes, because we all know that digital isn't growing every year, and that GME is totally fine until digital is 100% of the market.
Btw, buying used copies of Mass Effect 2 for $56 and then hoping to sell them for at most $55 is good for the stock how?
C'mon your reasoning and claim is weak! From the same article you linked.
"Thirty-six percent of non-broadband adopters, or 28 million adults, said they do not have home broadband because the monthly fee is too expensive."
"Twenty-two percent, or 17 million adults, do not have home broadband because they lack the digital skills while 19 percent, or 15 million adults, said they do not have home broadband because the Internet is not relevant to their lives."
You think any of the above are really going to be buying video games anyway? NO!
Of course they buy video games...why do you think the Wii is so popular?? The hardcore players truly hate it but it continues to outsell the other consoles. The games provide cheap entertainment for the whole family and is very simple to operate.