I'm just curious what you guys think. I recently jumped on XBOX live a few days ago and realized that I could now download games straight from the console.
It seems that the push towards digital distribution is growing quickly and will only kill a company like gamestop.
I read that a big chunk of the sales for gamestop is used games/trade ins. This will also fade as companies start to only sell their games in digital form to save production costs, and protect their future titles.
I see no way gamestop can survive, similar to that of the newspaper companies.
Would love to hear the bull side of this?
"The Wii is absolute trash too" nice objective thinking.
Well if you take a look at the top selling games in the entire history of the video game industry the top 14 are all Nintendo games. With six of those games being for the wii. The top 7 games of this generation are all wii games.
Impulse, Spawn Labs, Kongregate, Boom, Boom, Boom,
GameStop's first quarterly dividend payment comes out to $0.15 a share -- Pachter estimates this will total to $21 million. He forecasts that the company will end the fiscal year (April 2011-May 2012) with over $680 million in cash, which it could use to repurchase shares.
$680 million in cash for more digital acquisitions. Buy Steam and have an almost monopoly on digital PC downloads.
Erhm.. Not getting my panties in a bunch here at all. Just making sure people realize that Digital Versions of Collectors editions suck compared to physical.
And the merger if the Toy becoming a Digital product for video gaming.purposes is a merger that benefits Gamestop stores....STEAM can sell you Spyro's Adventure digital but without the physical toys and Portal of power that doesn't work.
This innovation is what keeps customers shopping at Bricks stores.
Look....Noone wants a digital only copy of NIKE Galaxy Air Jordan shoes. They want the real thing.
Just tried to download the wii u that is coming in November off xbox live, no success. Also couldn't find any of the "new" releases of Christmas like CDMW 3 on xbox live. Where did the 20 million people find it?
The 95 million people who bought the wii, couldn't find it on xbox live or even psn either. Will keep looking for the digital download.
May look on amazon, but I don't have a credit card.
It hasn't happened overnight and won't but there may well be a generation of consoles, or lack thereof, that don't require specialized boxes. Could be built into the TV or DVR or other more standard, generic item. Apple TV? I still don't have much faith in OnLive, but that's another avenue. Additionally, GME does not make much margin on hardware, it's the software and especially the used software. If that dwindles, there's not much left. As I said earlier, they may survive, but in a much smaller, different format IMO.
I'm not sure what to think of this company right now either. I generally buy my games online, (amazon, etc.), but I think there is still room for a B&M store like this. My son got a gamestop gift card for Christmas and I was amazed how crowded the place was! There had to be at least 40 people packed into the tiny store and the line to check out was about 10 people deep. Now this was the week after Christmas and it's probably not like this every day, but I was still surprised. On the trading side of the stock, I actually think it's a nice short term buy right now. The charts show the stock is oversold and if you look at a 5 year chart, the stock has seen a significant rise every March for the past 5 years. I don't know if history will repeat itself, but I just opened a small position today at $23.00.
As clear evidence That Video Gaming isn't going 100% digital just look to Mass Effect 3 Collectors edition. EBay has the game selling upwards of $40 to $50 over the retail price. Beginning of January Gamestop and.other bricks retailers completely sold out of copies. I AM LUCKY to have ordered my copy at Gamestop well in advance.
So Gamestop becomes a publisher and digital distributor in the next 5 years. Then the "bear" argument is what again?
Gamestop's fastest earnings growth right now is their migration to digital while square footage of bricks stores is shrinking in north America.