$24.63
0.44 (+1.82%)
GameStop Corp. (GME)
CAPS Rating:
The Company is a retailer of video game products and PC entertainment software.
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The Company is a retailer of video game products and PC entertainment software.
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Video games are bigger than Hollywood. Great games coming out this year, and many people have gotten involved with gaming for the first time through the Wii platform.
Gamestop is always packed with lines to the cash register.
Sure, WalMart is another place to buy games, but Gamestop is the place to go.
The question you should be answering is not whether or not people will continue to play games, but whether or not a retailer can continue to operate and grow its business when you can purchase games without leaving your house. Blockbuster & Circuit City are very telling, and the answer theyre telling is "No". Microsoft/Sony are converging to a web-based system for delivering games. Look at the iPhone for a great example. I've had my iPhone for 2 months now, and I already have 40 applications and games. All were purchased and streamed onto my iPhone. What about use games? - it's called EBAY. Even if this company can continue to have a niche with used games, that will also be fased out as new games will be predominantly streamed and thus no residual "used dvd" will be left to resell. I'm sure this company will continue to sell games in the near future, but their growth will be negative, and their stock price will soon follow.
How long have "E-books" been available (E.G. Kindle etc.)? A long time.How many people have adapted to "E-books"? Not many. People love books and magazines just as much as they love playing/collecting games and having the original documentation that comes with them. Buying/selling used/new games will *always* be around for this reason. That combined with the fact that we all get charged silly fees for "overconsumption" of bandwidth by ISPs means your utopian ideal of "download everything is the future" does not hold water. Sorry! ;-) GME is an awesome buy anywhere below $30.