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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details