I hope you are truly not basing your investment thesis on this because this is the biggest LOGICAL FALLACY of all time. By this same reasoning You Tube, Hulu, and Netflix should have brought down cable and the movie industry years ago. Blockbuster had two major problems timing and value. If I really wanted to see a movie I went to the movie theater and saw it. Todays generation is not going to wait 90 days to watch a movie. Second blockbuster did not offer a real value, renting a movie for $4.99 or you could just buy the DVD for $11.99. That and the onerous late fees and everyone cancelled their membership. Comparing a secondary rental service company to gme a video game retail company is insane. GME is both the movie theater (new games) and secondary market (used games). Plus the time allotted to a movie (2 hrs) or videogame (30- 50hrs) are drastically different.
Well there is DLC? Do you even know what that is? Because currently if I wanted DLC from PS3 you can’t get it because their store is shut down for maintenance. For something like 45 days this year PS 3’s store was shut down for maintenance. So in that time no DLC from the PS3 store was sold. Well there is xbox ‘s store, live, which you have to pay a monthly fee to shop at which is a barrier to customers. The current best “high” speed for residential customers is 100 Mbps. Have you ever watched Netflix and had a problem, I have. Do you know the file size difference between a movie and video game and how that relates to memory and download speed? If internet speeds were 1000 Mbps downloading full games would be dominant. Right now you can get a new map or level in DLC, after buying the game from GME.
I think there are a lot of 50 to 65 year olds on this board that have no idea what is going on in gaming and equate gamestop to blockbuster or think they know what dlc is.