3 ms·
> I guess if its your first bubble The bubble is/was at both ends. I honestly have to agree that it was undervalued at the time that the original GME posts wer
by zamalek 6y ago
> I guess if its your first bubble
The bubble is/was at both ends. I honestly have to agree that it was undervalued at the time that the original GME posts were made, but it's also very overvalued right now.
GameStop has limited immunity from the problem other brick-and-mortars are facing: console games purchased through digital content delivery platforms cannot be transferred to friends, where-as games that are purchased at GameStop typically can be. There's also hardware to be purchased and other goodies. GameStop is not intrinsically doomed to failure, if they proactively differentiate from digital content delivery.
That being said, it's highly doubtful that GameStop will outpace digital content delivery platforms (like Steam/PSN/XBox Live/etc.), unless they build their own.
In my opinion, they do potentially have a sustainable 8-9 figure market cap. This bubble is going to pop, just as much as the squeeze had to happen.
- capableweb 6y agoGameStop is not just competing with digital content and delivery, they are also competing against established all-in-one stores like Carrefour and Fnac, that typically carries everything GameStop (currently) carries plus more. If they can make themselves different enough to give people a reason to buy their PS5 at GameStop instead of at Carrefour, remains to be seen.