Ultimate result is no different than Blockbuster, Borders, and eventually Barnes and Noble. This company has no place in the future. All the content producers will look to go 100% digital in the future, or as close to it as possible as it will maximize their earnings. No need to let a GME siphon off their own potential sales. Netflix, Amazon, Hulu, Apple, Google - these are the models for where things are going. Sony, Microsoft, Nintendo - they will all have their own flourishing and captive PlayStores and Marketplaces where you purchase your titles and they will maintain them fully online - there will be no physical cartridges or DVDs, so you're not going to be able to trade or resell with your friends in the way you can today. If they allow it - it's going to be by paying a fee to Sony, Microsoft, or Nintendo for making the transfer/trade to someone elses "digital locker". Third party developers will be required to sell through the vendor online stores. No middleman, no physical media, no GME - end of story.
I often ask myself why anyone would want to invest in a company that is almost completely dependent on a brick and mortar format for a technology business/sector which unquestionably has a totally digital future? Maybe you can invest and make some money in the short-term as there are still folks who have not gotten it through their heads that there is no place for it and it's just a matter of time before complete annihilation takes place...just like mom-and-pop bookstores.
Yeah, you sit back and collect your wonderful dividends - the share price is going to be falling much more than that on an annual basis going forward. I wouldn't want to be around when the rug is pulled out from under you. Soon, all the big name firms will want to get in on this and claim to have been among the first writing the obituary here.
I don't short, but will begin buying long-term puts, as this is a slam dunk.
People don't seem to have a desire to resell books though, and it seems like Bluray/DVD is mostly a rental business too. Video games are more expensive than books and take longer to enjoy than a movie, so people like to resell them.
When someone comes out with a digital reselling system to go along with digital distribution, Gamestop will be in trouble