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GameStop Corp. Message Board

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  • mngtscrwdup mngtscrwdup Mar 20, 2012 8:51 PM Flag

    Why EPS doesn't matter for GME

    gme needs digital sales account to a whole lot more than 10% of revenues for the company to keep stock price up. gme expenses are pretty close to fixed (stores, personnel), but if trends continue the stores will be dropping revenues each year from now on.

    the video game industry is in a funk. Kids are spending time online and on mobile phones, not video game consoles. Also, the traditional video game companies are recycling the same old tired game franchises. how many Call of Duty repeats will they play? gme is in the roughest spot because it will not participate in all the digital future for games.

    the only question is at what point these issues hit the financials. my guess is very soon.

 
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