PS4 Event Went as Expected for GameStop (GME) - Analyst

February 21, 2013 7:24 AM EST
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Janney Montgomery Scott analyst Tony Wible commented on GameStop (NYSE: GME) following Sony's PlayStation 4 event.

"We got what we expected out of the PS4 event," the analyst notes. "The rumors on specs heading into the event looked fairly accurate with the system geared towards replacing high end gaming PCs while also incorporating a number of digital/social features. We have confirmation the system will launch this year (no firm date or price) and that it will support streaming and progressive digital downloads. There was no mention of a Used lockout; however, we were not expecting any comments on this. We suspect these details will now be chased down in the months ahead. We would note that the online speculators heading into the PS4 event that looked to be most accurate have not prognosticated there would be a Used lockout feature. If a “lockout” feature does exist, we wonder if it is simply a tool for Sony to authenticate the streaming technology displayed at the event. In other words, it may just be a tool to prevent piracy."

Wible said the digital comments will keep the GME short argument alive. However, they don't believe there is substantial demand for digital product.

He reiterated his Buy rating and price target of $32.00 on GME.

For an analyst ratings summary and ratings history on GameStop click here. For more ratings news on GameStop click here.

Shares of GameStop closed at $25.33 yesterday.

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