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GameStop Corp. Message Board

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  • tom_stocks Aug 3, 2012 7:41 AM Flag

    Future of VGs

    I wish you all the luck but I just don't trust the business to invest. This industry is going to change quick. I'll admit I haven't done any DD yet because my only interest in GME would be to short it. This industry will go the way of movies and games will be streamed of downloaded digitally.

    How does Gamestop compete when this happens? Unless they were able to lock up some kind of sell only rights (which they won't), how can they possibly stay in business? Used games will become a thing of the past with digital downloading. What will be left? Game magazines?

    Don't bash I am asking a legitimate question. What is the plan to compete as technology evolves?

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    • As I see it, here are the possible future scenarios -
      1. Spawn Labs - They can become a strong backbone for revenue. Owning a digital streaming company is powerful and can lead to partnerships for distribution deals long term.
      2. Enhance the store - GME has already shown that there is a growing need for a venue to trade in all things mobile (ipad, phones etc). So they can easily change the mix in store to include more of those services. And those who say you don't need a store that big to display those types of products are wrong. Apple stores are 8-11k sq/ft to essentially show 15 skus. Also, GME can easliy get directly into the new cellular activation business (like BBY mobile) without skipping a beat.
      3. Nextgen consoles - The new consoles will all be out within the next 18 months. They all will play physical media. It's the beginning a new 60 month product cycle. As it has been for the last 25 years, kids will want these systems. SOmething needs to go under the Christmas tree. Nintendo, SOny and Microsoft are the 800 pound gorillas in the room. They will not just go quietly into the night and let on-line take over. Not while they are introducing physical media systems. Mark my words, all three systems will be "sold-out" hard to find items on everyone's holiday list.

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