Its the new year and this year's resolution is to continue to whine and cry about digital. Also, to declare Gamestop, which is effectively debt free and carrying at least close to half a billion in cash, as going bankrupt.
Waaaaaaaaaaaaahhhhhhhhhhhh. I want my mommie!!!!!!!!
Or we can focus on simple fact based investing and realize that Gamestop has a multi-faceted infrastructure not a Single Product line Nook dependant cannabal style model.
90% today prefer to buy physical retail games from TTWO. That is fact #1.
Gamestop can sell any mobile.products they wish to sell and with their trade-in refurbishment program along with dnloadi.g free games, can be competitive with all other bricks and digital retailers. FACT #2.
Spawn Labs can be used to boost revenues from customers who would like to play PC and Console games on their mobile devices. Fact #3.
Kongregate/Jolt show that Gamestop has a hand in microtransactions and In-store brick stores can participate in these micro.sales by selling currency cards. Fact #4.
Game Informer is a top 5 magazine. Fact #5.
Can't digitize hardware and accessories. Fact #6.
New gaming systems are supported by physical software. Fact #7.
As hard drive space is used up, physical copies are best option. Which is why most shoppers are hybrid digital and physical games buyers. Fact #8.
Slow to no internet also creates the consumer need for physical. Maybe you lose your job and can not pay $60 to renew your annual XBOX LIVE Gold. Well, that means physical retail becomes the.option during poor financial times and 20 million Americans are without a job. Fact #9.
Gamestop's trade in program on software can't possibly go away due to the high demand from consumers. They beat a game and return it for the next game. They are smart enough to know that you lose that option buying digital. FACT #10.
Finally, Collectors editions are hugely popular as physical. Just look at Skyrim. FACT #11.
A 250GB Xbox 360 at 7 gb per software dnload means your hard drive is full after just 37 dnloads not counting everything else you may have on the drive, such as DLCs or expansion packs. FACT #12.
dont cry to mommy go crying to the bank.... lol... can you say digital downlaods and replace the word nook thats exactly what gamestop is heading towards canobilizing its won core bussiness they are a analoge seller in a ever increasing digital world
Not true. There are many ways the bricks stores can earn DIGITAL Revenues.
Barnes and Noble isn't doing that. All Digital Revenues are through the NOOK.
Gamestop is selling DLCs, Map Packs for all kinds of games not just COD so no need to bring up the ELITE Service issue, as well as acquiring Content Creators and selling currency cards for those games.
Gamestop's Spawn Labs could bring in digital dollars into the Bricks Stores as well depending on how they go about it.
Just because customers are switching to digital doesn't mean the Bricks Stores have to lose out on the revenues.
They can scrap their Physical inventories and just push out digital sales if they want...
In that sense there is no Cannobalizing. Not if the Bricks stores are selling Digital along with whatever else.