GameStop, which has offered the service for years, denies that Wal-Mart is a threat. Wal-Mart's used game business could be a big competitor.Įarlier this year, Wal-Mart launched a trade-in program for used video games, which analysts surmised could be a huge threat to GameStop because of the retailer's ubiquity and convenience. Digital downloads now make up 10% of total sales.īhatia notes that it's unclear whether the trend of downloading a game rather than buying it will continue, or whether GameStop will expand its offerings.Īnalysts also expressed concerns of whether digital downloads would yield the same profits as phyiscal products in the long-term.ģ. GameStop boasted that its digital business grew by 52%. GameStop needs to figure out a way to move out the old inventory while still turning a profit.Ĭompany president Tony Bartel assured analysts that this is a temporary issue because newer versions of video games are performing so well. One of the main reasons GameStop's business is declining is because customers aren't purchasing games for the Xbox 360 and PS3, instead opting for the Xbox One and PS4. Customers aren't buying old versions of video games. Sterne Agee analyst Arvind Bhatia detailed some of those concerns in a note to clients.ġ. But the falling share price reflects that analysts and experts are worried about some long-term issues with GameStop's business.
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