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GameStop Corp. Message Board

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  • varchild2010 varchild2010 Feb 28, 2012 10:25 AM Flag

    my humble take on this company

    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.

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    • What is available on XBOX.live Gamestop sells it digitally.

      Game Addons? Gamestop sells them and even bundles them with full game purchases.

      Gamestop has recently benefitted with sales of Call of Duty Elite subscriptions.

      As some Publishers try to abandon the retail stores other Game Development houses like Toys for Bob are embracing Retail stores with games like Skylabders where you buy a physical toy and a gaming portal device. You then use the portal device and watch your Toy come to digital life on your TV screen.

      Skylanders requires Bricks Stores to put out and sell and market the toys for the game. Other games will follow shot and we are going to witness a whole new Video Game marketplace for Physical Gaming for Kids.

    • Have they made any advances in digital distribution yet?

      It seems like best case scenario gamestop would serve as a middle man in between the game publishers and microsoft (or whatever other console there is to download from).

      Why wouldn't the publishers and microsoft just work directly with each other and eliminate the middle man that is now gamestop?

      • 1 Reply to snapy92
      • THey have and continue to try and make further inroads. Not going to detail it as you can certainly do that for yourself or others on this board better versed than I can do it for you.

        Bottom line is their revenue base seems destined to shrink and not grow. In Wall Street terms, while they may survive and even thrive in a much smaller form in the future, that spells shrinking share price IMO.

 
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