Microsoft (MSFT) Xbox One News Includes Positives and Negatives for Gamestop (GME)
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Rating Summary:
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Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
3 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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On Thursday Microsoft (Nasdaq: MSFT) provided platform policy details for its new console, the Xbox One. Previous speculation suggested Microsoft would block or charge a fee when used games are sold. Microsoft made it clear it would not.
Commenting, Wedbush analyst Michael Pachter said, "While that may be viewed quite positively for GameStop (NYSE: GME), the platform policies also contained something that will likely be viewed as negative: games will be made available via digital distribution through Xbox Live on the day of release of the packaged product."
"We believe that this disclosure has the greatest potential to negatively impact GameStop's business, as GameStop is unlikely to participate directly in these digital sales; however, we believe it is in the best interests of Microsoft and the publishers to integrate GameStop's PowerUp Rewards currency into digital transactions in some manner. We think it is possible that either gamers will be allowed to purchase digital content key codes from GameStop's DLC kiosks, or
that Microsoft will somehow allow the company to integrate its PowerUp Rewards program directly through Xbox Live," said Pachter.
Wedbush today maintained an Outperform rating on GameStop with a price target of $49.00.
For an analyst ratings summary and ratings history on GameStop (NYSE: GME) click here. For more ratings news on GameStop click here.
Shares of GameStop closed at $34.62 yesterday.
Commenting, Wedbush analyst Michael Pachter said, "While that may be viewed quite positively for GameStop (NYSE: GME), the platform policies also contained something that will likely be viewed as negative: games will be made available via digital distribution through Xbox Live on the day of release of the packaged product."
"We believe that this disclosure has the greatest potential to negatively impact GameStop's business, as GameStop is unlikely to participate directly in these digital sales; however, we believe it is in the best interests of Microsoft and the publishers to integrate GameStop's PowerUp Rewards currency into digital transactions in some manner. We think it is possible that either gamers will be allowed to purchase digital content key codes from GameStop's DLC kiosks, or
that Microsoft will somehow allow the company to integrate its PowerUp Rewards program directly through Xbox Live," said Pachter.
Wedbush today maintained an Outperform rating on GameStop with a price target of $49.00.
For an analyst ratings summary and ratings history on GameStop (NYSE: GME) click here. For more ratings news on GameStop click here.
Shares of GameStop closed at $34.62 yesterday.
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