Posted in: Collectibles, Games, Games Finance, Video Games | Tagged: Games Finance, gamestop, GameStop Corp, Matt Hodges, Rob Lloyd

The Switch Just Might Be The Savior Of GameStop

I've gotten ahold of an equity research report from a leading securities firm based on their meeting with GameStop's CFO, Rob Lloyd, and VP of Public & Investor Relations, Matt Hodges. That meeting prompted their report to reflect an incredibly positive position on GME stock for GameStop Corp. This is pretty impressive given that GameStop's stock position has been on a general downtrend since summer of 2016.

Thanks to the incredible strength of the Nintendo Switch launch, and the insane sales of launch title The Legend of Zelda: Breath of the Wild, as well as the increasing strength of the tech and collectibles industry, the firm predicts that GameStop stock will have a strong performance through 2017. They were also very positive about GameStop's continued dominance in the video game and collectibles retail business. It's essentially a fact of life in 2017 that Amazon will inevitably take over retail for every industry, but GameStop has been holding out for a relatively long time.

Their impressions of GameStop trended positively because of the stock's low evaluation. Sure, they've maintained their usual sale of new releases, and with half of all physical console games sold in the US are resold many of those are sold through GameStop. But most importantly, the equity research team did not believe that Xbox's Game Pass subscription would affect GME's pre-owned sales, since the hundred titles or so included in Game Pass equate to about 1% of GameStop's resale market.

Now, I'm not going to say you should take one securities firm's word on the subject, but if you were thinking of investing in GameStop stock, it looks like you won't need to worry about Xbox Game Pass being a threat. And Given the Switch's historic launch, now might not be a bad time to buy.

Enjoyed this? Please share on social media!

Stay up-to-date and support the site by following Bleeding Cool on Google News today!