Pachter seems to be the leading analyst or most outspoken in the video game industry. His report seems spot on; however, he is missing the new tablet and apple trade in program. When a Wii is selling for $140 new and GME is selling tablets at $499 new, the tablets are going to have a significant increase on their hardware sales numbers. The new and used tablets could easily add another $3-5 to Pachter’s target share price.
Thorman and Jimmy, I am gonna give you a hint; it is all about software line up. 2011 Q1-Q3 very few AAA releases. 2011 Q4 saw the most AAA releases in the history of the industry. 2012 will be just as strong. Q1 has the release of Mass Effect 3 which already has 400,000 preorders. 2012 will see the release of Grand Theft Auto which will easily sell 20 million units if not over 25 million units.
Look at the top publishers: GME sold roughly 25% of the ≈ 16 million units of Activision’s Call of Duty: Modern Warfare 3 sold worldwide during the holiday period, as well as at least one million premium Call of Duty: Elite subscriptions, which is DLC. GME SOLD 1 MILLION DLC UNITS.
In its last quarterly statement Electronic Arts reported that 16 percent of its total net revenue came from direct sales to GME. Walmart, the biggest retailer in the world? They're just 10 percent of EA's revenue.
Look at all GME’s recent news releases. They offer special extras for preordering games at GME exclusively. This may seem like nothing, but to many video gamers this is a huge deal. This will facilitate preorders and increase GME’s market share.
Don't all retailers get some special preorder bonus these days? I have read articles that say gamers are not happy about it since you have to choose between them and may want one more than the other, but obviously no one wants to buy two copies of the game to get more than one type of preorder bonus.