tough to say..... While Atvi praises their digital efforts, they also praise physical as well....
I mean we live in a strange world where Call of Duty continues to produce record physical copy sales.....at the same time digital growth is waaay up.
www.Gamestop.com continues to show Call of Duty Annihilation map packs as a top seller. That is an otherwise digital line item via Xbox Live.
The digital world doesnot seem to be leaving Gamestop in the dark despite the Bears best efforts to pretend Impulse does not exist.
Then there is this brand new tactic by the bears to claim that used game margins will shrink a d sales will fall off a cliff due to one tim use codes and digital....they claim digital margins for GME is just 25%.
But that is without Impulse and it is gross margins... Profit Margins are much more significant....that takes into account labor, tax, B&M, and other expenditures....as well as how much goes to Gamestop per unit of sale.
Impulse Gamestop margins are actually 30% according to Zoomba from Impulse team. 70% goes to the developer/publisher.
So, it really is complicated to figure out how to weigh truthfully the impact of selling more digital vs phys. preowned. I would think quantity matters alot and I would guess one can certaintly sell far more digital copies that preowned phys. simply from a supply, inventory perspective.
The shorts are focusing only on a limited isolated and ignorant view of Gamestop's future growth. They see negative growth prospects period. Negative!!!!!!
so what happens to share price if that does not happen?