So, can someone explain to me the incredible (near 50%) short interest in Gamestop? I really don't understand.
I saw this awesome chart in The Economist that showed the prevalence is digital downloading. It's something like 50% for all video games, whereas its about 20% for movies and TV shows.
Gamestop might be in for a big shift in where its revenues are derived, but I just can't see the comparison to Blockbuster. If Gamestop's Pre-owned game revenue went to zero today, a fair estimate for the stock would still be around $17 per share (which is why I bought it around $17). I think anyone who thinks that their storefronts will be a burden instead of an asset just doesn't understand how much some customers appreciate being able to bring their children to a store, have them choose a game and take it home. Even if it's just a card with a digital download code on it.
It just looks like a bunch of people are asking to get squeezed.