Game on for GameStop Corp (NYSE:GME) with Microsoft announcement

Posted by Lynn Eisler June 21, 2013 0 Comment 782 views

Microsoft announced that it will not be placing restrictions on any used games for Xbox one and GameStop Corp. (GME) shares skyrocketed. A major portion of GME’s business comes from the used game industry and this development will surely have GameStop investors heaving a sigh of relief. The company’s shares soared 6.25% on Thursday to close at $40.94 per share. Previously, Microsoft had said that it may charge a fee to purchase and play used games which is the backbone of GameStop’s business.

The icing on the cake is that Microsoft will also be getting rid of the previously announced requirement that players would have to check in online, on the device, every 24 hours in order to enable them to play the games offline.

Is Xbox one raking in the dollars at GameStop?

There had been a lot of speculation about whether (with the restrictions that Microsoft had placed), its Xbox One sales will be bruised. However, a cursory glance at initial statistics seems to speak otherwise. GameStop has actually been taking a lot of preorders for the Xbox. News was that the chain had already touched the number of units that it is permitted to sell on preorders. The company’s website is still accepting preorders though.

Xbox Vs PS4

Apart from a whole load of differences that have been discussed since these two companies announced their respective product launches, the one glaring difference is that of the price tag. The Xbox One at $499 is a good $100 above the $399 that the PS4 is being retailed at. But it seems like no one is looking closer. The Xbox One comes with more than merely a game box.  A Kinect will be included in every Xbox. This revolutionary gesture-interface by Microsoft makes gaming a truly awesome experience. At E3 Microsoft demo’d how Kinect could recognize at least 6 individual players in that room. Speech recognition, hand gestures, channel changes and content navigation is truly awe-inspiring. Apparently, hardcore gamers don’t give Kinect a second glance but by the looks of it, a lot of people are.  Microsoft is winning and so is GameStop Corp (NYSE:GME).

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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