cageymaru
Fully [H]
- Joined
- Apr 10, 2003
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GameStop has allegedly been linked to talks with Sycamore Partners as the private equity firm has expressed interest in the company according to Reuters. Anonymous sources have been quoted as saying that GameStop has now hired a financial adviser to assist in the discussions. The past year has been a tumultuous time for the company as their CEO J. Paul Raines stepped down late last year due to medical reasons and passed away in March. His replacement, Michael Mauleronly, only lasted three months on the job before resigning for personal reasons leaving the leadership of the company to former Microsoft XBOX executive Shane Kim.
I wonder how GameStop's business model will continue to be profitable in the new digital video game economy. Microsoft's XBOX and Sony's Playstation both have digital downloads services for new games and have bundled their respective older titles into paid monthly streaming services. I think their best bet is to reinvent themselves as the Netflix of game streaming and use that company's business model of charging a monthly rental fee for physical discs exchanged through the Post Office.
The retailer’s stock has slid more than 32 percent over the last 12 months, bringing its market capitalization to $1.42 billion, down from about $9.4 billion in 2007.
While its used-game niche has helped the company, this model has also been challenged as games developers including Electronic Arts Inc, Sony Corp and Microsoft Corp have each launched plans to offer monthly streaming services for many of the older titles they own.
I wonder how GameStop's business model will continue to be profitable in the new digital video game economy. Microsoft's XBOX and Sony's Playstation both have digital downloads services for new games and have bundled their respective older titles into paid monthly streaming services. I think their best bet is to reinvent themselves as the Netflix of game streaming and use that company's business model of charging a monthly rental fee for physical discs exchanged through the Post Office.
The retailer’s stock has slid more than 32 percent over the last 12 months, bringing its market capitalization to $1.42 billion, down from about $9.4 billion in 2007.
While its used-game niche has helped the company, this model has also been challenged as games developers including Electronic Arts Inc, Sony Corp and Microsoft Corp have each launched plans to offer monthly streaming services for many of the older titles they own.