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  • tribeslore tribeslore Oct 3, 2010 8:54 PM Flag

    Why digital downloads are a far cry from becoming competition

    **The bottom line is that, while GameStop and other physical stores will be hurting financially in the near future because of digital distribution, they will most likely never go out of business -- at least not for a long time. Until we can get fast, uninhibited Internet access for everyone, gaming won't go completely digital and most likely shouldn't.**

    I will admit I am holding Gamestop, at a very low basis in it's current range below 20.00. The fact this stock is being shorted at a bewildering 19% to float is beyond me. You summed it up perfectly above and I quote....

    "Until we can get fast, uninhibited Internet access for everyone, gaming won't go completely digital and most likely shouldn't."

    Do you honestly see everyone with uninhibited Internet access within 5 years?


    - Tribes

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    • I'd like to also point out the fact that Gamestop (GME) P/E (7.52 FWD) is grossly undervalued in comparison to it's sector, industry and similar companies. Compare the GME p/e to Amazon (52.93), Netflix (47.56), BestBuy (10.90) and pretty much anyone. I'm just pointing out the facts here. If you want to put a healthy dog down based on speculation, be my guest. I won't be there when Lassie turns tail and bites the hand that beat him. (Short interest).

      - Tribes

      • 1 Reply to tribeslore
      • First of all I have been in and out of GME since way back in it's glory days, which I think are unfortunately behind it. I have no position now at all.

        Are you really comparing them to AMZN? An online retailer? GME is first and foremost bricks and mortar with over 6500 locations.

        NFLX? I don't even get that at all. At least with AMZN you could say they also sell games like GME.

        Best comparison is BBY which happens to have a full range of electronics and appliances to fall back on should the VG market fail them.

        Valuation doesn't mean much if the market isn't buying it. And that valuation relies on those fwd numbers being correct and not lowered as they get closer.

        They might get that long rumored buyout, but other than that this is a trading stock whose best days are in the past.

    • No I don't but then I do see the bulk of concentration of the population in the cities and suburbs that have that access or will very soon. How many of those rural dwellers do you think make up the total pop, much less the potential digital downloading pop? Very few I will bet.

      • 1 Reply to Homersby
      • You're right. In five years time downloading large game files over Cable/DSL will be so much better then standing in line for the latest releases. Well better if you discount, connectivity issues, download failures, file corruptions, long periods of downloading a 7 gig game (especially on release days), hard drive failure, system failures and loss of all downloaded content. Digital media seems like a great option for gamer's out there.

        - Tribes

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