Josh Burwick
Long/short equity, growth at reasonable price, tech, Venture capital

Used Game Virtuous Cycle Game Over, Good Night GameStop

Microsoft (NASDAQ:MSFT) unveiled its Xbox One next gen platform focusing primarily on the "all in one" entertainment aspect. However, outside of the main webcast presentation, MSFT confirmed that the used game business will not be business as usual for GameStop (NYSE:GME). Note Sony (NYSE:SNE) will also likely adopt a similar strategy as is evidenced by its July 2012 acquisition of cloud based gaming company Gaikai for $380 million.

Getting back to the Xbox One unveiling, while it was not said on stage as to not directly alienate its retail partner, MSFT clearly has plans to take video gaming into the 21st century with respect to digital downloads. According to Kotaku quoting Microsoft corporate vice...

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