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Varchild2008 (84.58)

Gamestop's Next Gen. Video Game Console

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April 02, 2012 – Comments (8) | RELATED TICKERS: GME

Gamestop's Next Gen. Video Game Console

So while everyone is on the subject of Gamestop stores going bankrupt once Sony and Microsoft release their "Used Games Banning" next gen. video game consoles,

what will happen when Gamestop releases for sale their 100% CLOUD, 100% DIGITAL Streaming
next-gen video gaming console?

What!?  Haven't heard the news about this big rumor?

Check this out (thanks to BIRCH981 from the Yahoofinance forum for GME):

http://www.google.com/patents?id=hcQhAQAAEBAJ&pg=PA1&dq=spawn+labs&hl=en&sa=X&ei=rDV6T6uZDIXZ0QHX5dSXDQ&sqi=2&ved=0CDIQ6AEwAA#v=onepage&q=spawn%20labs&f=false

Above hyperlink takes you to the Spawn Labs Gaming Console Patent to produce what appears to me to be a 100% CLOUD, 100% DIGITAL Streaming Video Gaming Console.

Guess what SHORT SELLERS?????

The Profit Margins for Gamestop to sell a Digital Video Game is 100%.....And that friends is far higher than the profit margins for the Used Video Games business.

It is to Gamestop's tremendous advantage here to introduce to the consumers this option to acquire for the first time a 100% CLOUD based Game Machine.

And it makes sense.   Valve's STEAM already has rumors that circulated about a gaming machine themselves....later Valve denied that they have plans to build one.

http://www.gamespot.com/news/valve-readying-steam-box-console-report-6364279 


http://www.trustedreviews.com/news/valve-denies-steam-games-console-plans

Don't be surprised to see Gamestop be the next to soon announce or have rumors floating about a Spawn Labs Gaming Console once the Spawn Labs technology comes out of Beta Testing.

So what happens to MSFT and SNE when their Next-Gen Video Gaming Consoles are unavailable at your local Gamestop, all 6000+ Gamestops, meanwhile SPAWN LABS Gaming Machine is available?

And why should the Video Game Publishers not jump on board the Spawn Labs gaming machine?

Gamestop is already courting independant game developers at a recent convention and maybe this is why?

Shorts having to Cover their shares in a massive short squeeze in 3........2...........1........

(Don't think the patent or the VALVE, Steam Gaming Machine rumors back in March, will lead to a Gamestop Spawn Labs gaming machine?  Explain why I am wrong in the comments below)

8 Comments – Post Your Own

#1) On April 02, 2012 at 9:03 PM, Varchild2008 (84.58) wrote:

Gamestop seems set to take out the Middleman.

But in this case the Middleman happens to be Microsoft and Sony.   With 18+ million Rewards Cards members, that is an awful lot of customer loyalty to harness should Gamestop indeed be set to become a Game Machine Manufacturer.

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#2) On April 02, 2012 at 9:23 PM, Varchild2008 (84.58) wrote:

In other news...When was the last time you saw a DIGITAL FULL GAME DOWNLOAD appear as Gamestop's #2 Best Selling Title for a Video Game System?

Go to Gamestop's website and click on 3DS in their Best Seller menu.

KID ICARUS DLC is Gamestop's 2nd best selling 3DS video game.  Beating all Physical Video Game sales other than the Kid Icarus Uprising 3DS game.

The idea that Gamestop isn't increasing market share for Digital Software Sales is not true.  I see this as clear evidence of market share gains.

So while everyone on the short side fixates over IMPULSE's 10% market share when Gamestop acquired it, us longs look at evidence that this doesn't even tell half of the story.

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#3) On April 02, 2012 at 9:41 PM, MarkReeth (69.10) wrote:

Hey man, great post deserving a +1

I remember reading about the Spawn/Impulse/Gamestop deal last year (here's a link to the announcement) and thought it was pretty interesting, but I never really thought Gamestop would go so far as to develop their own console.  I mean, why cut out the Middlemen (MSFT & SNE, as you say), when Gamestop can make so much more money acting as the Middleman themselves.  It's what has made the company so profitable over the last few years, and to cut two of the three biggest console makers out like that would certainly hurt profits in the short run while GME built up support for its new system.  

I definitely think, though, that GME is covering its bases with this patent.  So many companies create patents like this to profit when other companies develop and actually want to produce technologies like the Spawn gaming machine (just look at RIM, patents are one of the very very few reasons the company is still viable).  Still, if GME were to go through with producing its own console, it would have to compete on the already viable online marketplace; PSN and XBox Arcade, while crappy, have a lot of room to grow, and Steam, OnLive, and others are already very competitive in that arena.

Long story made slightly shorter, I like your take on the Spawn/Gamestop console, but even if it is produced and sold in GME's many location it doesn't mean that it'll be a profitable venture any time soon.  Hopefully investors will see the potential in a GME console like you have and boost the price, and if they do I'll be all too happy to cash in!

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#4) On April 03, 2012 at 12:02 PM, chk999 (99.98) wrote:

How many units of the new console would they have to sell to break even on the dev costs?

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#5) On April 03, 2012 at 6:20 PM, thetruth2012 (< 20) wrote:

This would fit in with all of GME's aqusitions. Spawn Labs would be the hardware, Impulse would sell the games, Kongragate would be the social app games.

 You could also see them using Buymytronics to preload a 1 month free subscription on to tablets. The tablets could be compatiable with the console like the Wii U and like the vita is compatiable with the PS3. 

 GME could generate revunue from the sale of the digital games and also get a subscription fee for the service. 

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#6) On April 17, 2012 at 11:37 AM, FalconBoston (99.70) wrote:

Interesting. So Gamestop has zero costs of development for the console or the presumable games that will subsequently come out? Not sure how you can have 100% margins...it's impossible.

 

And GME has 18mm loyalty customers...so what? The other consoles have installed bases in the hundreds of millions. I'd love to know how they make up that delta, even if you assume 100% of their customers buy their console that doesn't even exist yet.

You've been calling for a short squeeze forever...people should look at how well you've done with this stock and make up their own minds.

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#7) On April 17, 2012 at 11:39 AM, FalconBoston (99.70) wrote:

I am also interested how you come to the conclusion that GME is gaining share in digital downloads based on the fact that a digital download was thier #2 selling game. What you wrote makes no sense whatsoever.

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#8) On April 17, 2012 at 11:45 AM, FalconBoston (99.70) wrote:

*their

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