Gaucho420

GameStop Director Leonard Riggio Shows Us the Future of Gaming

Dedicated gamers will get their games faster by downloading. I have XBL and if a game came out at midnight online, I'd have XBL downloaded overnight and have it ready for use in the morning. That's much faster than waiting for a retail store to open the next day.

I go to store now, such as this week to pick up NBA2k10, because I wanted the anniversay edition. But had it been a normal non-anniversary year and had the option been there to download it straight to the hard-drive from XBL, I probably would've opted for that.

I think a bigger argument agaisnt downloads is 1) the added cost of a hard drive to store them (especially when you get to the full sized games), 2) the lack of a manual and 3) no trade in value on downloads.

I know quite a few dedicated gamers who don't download that many games, because they dont' feel like wasting money on a hard-drive. And that's the over-riding reason, plus the trade-in value of discs.

For the 360, retailers should thank MSFT for making the hard drives propriatery and super expensive, as it keeps a large number of gamers hooked to retailers, as nobody wants to pay MSFT ridiculous price on its 60 gig or 120 gig drives.

I have paid for the 120 gig drive, because I can afford it, but most can and most simply don't even trie demos, movies or anything else, as the hard-drive on the 360 is cost-prohibitive.

I know the PS3 can use any drive you choose, but even at bottom barrell prices, it still cost money.

So in my humble opinion, online gaming will be restricted (for a tiny while) by the cost of extra storage. I have seen this to be true across my gaming friends and I know a boatload of all ages, sex and income types. Gamers want to play...paying for a hard-drive is simply an unwanted hassle at the current prices.

Game Over for GameStop

Huh...and the new download are FULL 360 games of this generation...Bioschock, COD2, Civ Revolution & others...perhaps those who are criticking this blogger will do their own research and not let their stock holdings influence what should be an unbiased decision...this isn't a sports team, its an investment.

GME's best days are far behind it.

Game Over for GameStop

I agree completly and make the same analysis. GME's time is very limited....don't forget the new PSP, which will only have games via digital download!!!!

Will OnLive Kill the Console Gaming Business?

"Since October, the industry in the United States, October through February, is up about 11 percent dollar growth. Over that same time period, Nintendo is up over 50 percent. Let me put it a different way: the total industry has grown just over $1 billion during that time frame. Nintendo has grown over $3 billion, so do the math. We're accounting for more than 100 percent of the industry growth, so certainly our share is growing. Other people are losing share. Those are the facts."

Reggie-Fils-Aimee at Nintendo. Again...why invest in a shrinking pie that now will have THREE competitors fighting for it...Onlive will have zero effect on the Wii market as Nintendo will never release its games for it and a Wii mote is no-where in site. Hence, game over as an investment...the bigger pie is elswhere.

Will OnLive Kill the Console Gaming Business?

Who cares...you're all missing the boat, the paradigm shift has happened and continues to happen away from hard-core gaming.

As an investor, why would anyone invest in a technology aimed at the old way of doing business? Its great & all, but besides the very obvious technical difficulties of assuming someone's computer at home will be capable (well DUH!, that's obvious), the bottom line is growth in the videogame world is fueled solely by Nintendo, the Wii and the DS. Had Nintendo not come out with the Wii, this column wouldn't exist as the industry would be shrinking or be flat in size.

So again, who cares? I'm more interested as to WHOM exactly will step up first to challenge the Wii, as that's where the Dollars are.

I have a PC, a 360, A Wii and I game all the time and have for decades...however, I'm not going to let my gaming tastes affect what I invest in and to me, the hardcore market is flat outside of accessory spending and the fact the hard-core have grown up and can afford more items...but the amount of hard core gamers out there is less than before.

The sales of the 360/PS3 don't even come close to the PS2, even combined...but the Wii outsells the 360/PS3 combined, every single month and the top sellers are mostly DS/Wii games.

Invest in the Otakus if you'd like...I'll choose the mass market and the publishers who address that need.

Will OnLive Kill the Console Gaming Business?

Where's Nintendo? Of course, not anywhere near Onlive...and that's its major problem. This will cause the already shrinking hardcore market to be even more competitive, while Nintendo will just sit back and laugh...as no one has a Wiimote (yet) and the Wii is mostly succesfull due to its OWN NINTENDO GAMES. And its not like Guitar Hero/Rock Band is going to be on Onlive.

Once again, the genius of Nintendo, at least in this generation...shines on. Their product, which is completly exclusive to them, the Wii, will look even more exclusive now that you can get GTAIV on a download service. Its not like a motion controlled wand, coupled with the QUALITY of Nintendo is coming out anytime soon for a PC.

And the family market will never sit in front of a 20 inch computer monitor to do family gaming...only the existing hard cores will. So to me, Onlive is cool...but no game changer as the game changing is the Wii, DS and family gaming.

Too bad, so sad for Sony and MSFT...for everyone else, consumers included, this should make the other products cheaper and more competitive.

GameStop Has Received an Undeserved Beating

What about the fact that downloading games will become the norm and that many new games offer free additional downloads to buy them new (hence, taking away from GME's used game biz) as opposed to used?

Personally, I see the industry turning and quickly on Gamestop, because anyone who goes in their knows 1) the salesclerks almost unanimously prefer to recommend used games over new ones, which is why companies are offering freebees for 1st time buyers of new games and 2) Gamestop does an awful job of promoting the Wii, almost ragging on it and its customers as it sees fit. Anyone who shops at Gamestop regularly knows that your treatment will depend on whether or not the minimum wage clerk approves of your purchase.

I beleive in the short term their maybe a bounce in this stock, BUT, long term it is doomed as we approach fully downloadable games and with the industry finally paying attention and fighting back GME's blattant used car sales tactics.

GME is not the friend of the companies...at all and I beleive that will cost them in the long run.

Gamestop: Consensus Needs to Catch Up to Reality

I don't have a position on GME, but was looking at buying at the dips. I agree that GME, along with other retailers, will suffer...however, I think this is already priced in. The reason I'm looking is:

1) barely anyone has crossed over from the PS2 to any of the new consoles..check the stats...well over 60% of PS2 users have not bought anything new. Once the 360 and PS3 fall in price (and they most certainly will), their will be a rush to buy one or the other or a Wii. I know many, many, many people who have not bought a Wii, PS3 or 360...its the wide majority of gamers out now .

2) Prior to today's fall, GME's PEG ratio was below 1.0, indicative that bad news is already priced in. I think its heading towards 0.90 soon.

3) The PE ratio, at 21.71, is right in the range of other retailers, suggesting it is not over-priced and suggesting the PEG ratio is severely undervalued.

4) The Nintendo revolution of mass gaming is bringing in many, many new gamers who simply weren't here this time around. That is a large widening of the market and you cannot compare the last cycle to this one.

5) Many existing gamers have more money than last time around. I'm 32 now and I own multiple consoles. This was never possible before. As the core demo gets older, many buy more games as they can, for the first time in their lives. The attach rate of 360 games to the system is further proof...Nintendo also claims the Wii has the highest attach rate of any Nintendo console before. This is simply due to the core demo getting older, having jobs and choosing to spend money on their favorite hobby. I am proof, so are my friends...this isn't brain science.

6) The stock is approaching its 52 week low and is down over 33% from its 52 week high. How much more of a retrenchment can possibly be expected?

7) I agree 100% with GME, downloading of games IS YEARS AWAY. Have you tried downloading a movie on Xbox Live? Its not a quick thing. Games are much larger and games that are on the 360/PS3 are much too large to go to full download. Once movies get there, I'll start to worry, But yes, down the line this will be a problem, for all videogame retailers.

8) BLOCKBUSTER? That's ridiculous. Who shops at Blockbuster and why would anyone think gamers or families are headed to blockbuster for their gaming purchases? I don't know any gamers that thinks of Blockbuster for their gaming needs. The company's rep is simply atrocious so I don't buy that at all.

The true problem with GME is its customer service, which is not very good, anywhere. Stores run by 20 something gamers who feel they have to prove to everyone they are the videogame savant really turns off quite a few people, especially as they feel the need to comment on every game you buy (why are you buying that game...bla, bla, bla). Also, GME is always out of stock on almost every single hot product and the stores, in my opinion, could be better laid out. They still feel from 10-15 years ago and remind me of Babbages.

Interesting take though on a possible collapse of sales. If that's the case, forget GME, the entire industry is in trouble. But I believe given the downfall in the stock's price, that soon, it will be a good buy. We'll see if my mouth is where my money is, as I don't have a position on this stock yet, but I'm watching it carefully.