GameStop (GME) Falls As Ruling Could Impact Used Game Business
Tweet
Share
E-mailGet Alerts GME Hot Sheet
Price: $11.21 --0%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 13.9%
Revenue Growth %: -12.1%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 13.9%
Revenue Growth %: -12.1%
Join SI Premium – FREE
GameStop (NYSE: GME) is seeing some pressure this morning on reports that a court ruling could hurt the company's used game business.
The Dallas News reported today that a recent federal appeals court ruling could allow game publishers to prohibit sales of used games.
A U.S appeals court decided in the Vernor vs. Autodesk case that software publishers can prohibit buyers of its software from reselling to others users.
If upheld the ruling could impact GameStop, eBay (Nasdaq: EBAY), libraries, garage sales, and any other person or entity selling used games, legal analyst say.
GameStop would be one of the most impacted, as used games accounted for 31.4% of the companies second quarter sales and also carry much higher profit margins.
Shares of GME are down 2.8 percent to $19.80.
The Dallas News reported today that a recent federal appeals court ruling could allow game publishers to prohibit sales of used games.
A U.S appeals court decided in the Vernor vs. Autodesk case that software publishers can prohibit buyers of its software from reselling to others users.
If upheld the ruling could impact GameStop, eBay (Nasdaq: EBAY), libraries, garage sales, and any other person or entity selling used games, legal analyst say.
GameStop would be one of the most impacted, as used games accounted for 31.4% of the companies second quarter sales and also carry much higher profit margins.
Shares of GME are down 2.8 percent to $19.80.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BofA: Equities and bonds witnessed weekly inflows; no landing much more probable
- Meta earnings, IBM to acquire HashiCorp, U.S. GDP ahead - what's moving markets
- Price choppiness and volatility is here to stay - BMO
Create E-mail Alert Related Categories
Insiders' Blog, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
