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GameStop Corp. Message Board

  • exgridman exgridman Mar 27, 2007 4:36 PM Flag

    Gamestop's Long Term Delimma

    Read this article Under Headlines by Motley Fool

    Remember markets work way in advance. What long term investor will put money to work in a business that has maybe two good years left

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    • Sorry... most analysts are basing the threat to companies like GME and NFLX without considering several factors:
      1) cost of hard drives (especially true for X-box et al) $100 bucks buys you capacity for 5-6 games IIRC, unless you see a decrease in game price it costs a LOT more
      2) Line speeds (2-10 hours for a download, or go to the store)
      3) Game size (games are getting bigger, if they start filling Blu-Rays you can multiply size by 5, which increases hard drive cost and download time).

      Game companies may try the download model, but I have a feeling many people will just buy the game in store if there isn't much of a price advantage.

      • 1 Reply to kamel5547
      • Your assessment is not accurate on downloads. In addition you are not considering the virtual game model (thin client)
        There is also the "Second Life" virtual worlds gaining more and more popularity. These are all factors that are signalling the top of the GME market. Just like the music and movie industry ,the game market distribution is about to change.

    • this was a down day and look @ the price.
      tomorrow, with fed. talking, this stock should do vary vary vary vary vary well!
      gamers are the key!
      look and ask, gamers will tell you!

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