Can GameStop Make the Digital Jump?
Jun 9th 2012 12:39PM
Updated Jun 9th 2012 12:40PM
The following video is part of our "Motley Fool Conversations" series, in which Jason Hellmann and senior technology analyst Eric Bleeker discuss topics around the investing world.
GameStop has been working to maintain its relevance in the digital age. The recent reports that Sony had considered -- but ultimately abandoned -- the idea of leaving out an optical disc drive on its next video-game system shows just how quickly physical video game sales could dry up in the coming years. That's a huge risk to GameStop, a company reliant on bricks-and-mortar stores and used games that sell at higher margins.
In this video, Eric talks with Jason Hellmann, a former GameStop employee, about his experience with GameStop's army of loyal customers and asks whether they'll make the digital jump to many of GameStop's digital initiatives. Unfortunately for GameStop investors, his experience indicates that the hybrid model the company is pursuing could prove ultimately flawed.
Just a few years ago, GameStop was seen as an unassailable force in the video-game scene. The speed at which GameStop and other retailers, such as Best Buy, have seen their fortunes change is in large part due to the unprecedented rise of mobile devices. While smartphones and tablets have led to struggles for these companies, there's a whole array of other investments seeing massive profits in the mobile space. To help investors sort out the situation, The Motley Fool has created a free report named "The Next Trillion-Dollar Revolution" that details a hidden component play inside mobile phones that also is a leader in the exploding Chinese market. Inside the report, we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, and you can access this new report today by clicking here -- it's free.
At the time this article was published Jason Hellman and Eric Bleeker hold no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Best Buy, GameStop, and Google and is short Sony. Motley Fool newsletter services recommend Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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