Sony sent a wave through the industry in late September when it announced a digital version of the PlayStation 5 that had the same performance as the standard, but would be $ 100 cheaper and away from the disc player to play physical games.
But if gamers feel pressured by the digital version of the PS5, and switch over, Gamestop will face a major challenge for its business. The company declined to comment on the risk to the story.
But in a September 2019 interview, CEO George Sherman told CNN Business: “Gaming as an industry can’t get stronger … we need to pivot. It’s a game stop that needs some change.”
Analysts were divided over whether the gaming retailer was in immediate trouble. But Sony’s next launch is the latest signal that the retailer needs to adapt.
Stephanie Wisink, managing director of consumer equity research at Jefferies, believes digital consoles will not be widely adopted yet because most gamers across the country will need more bandwidth and an external hard drive to capture the whole digital game.
“But after that, we really need to talk about some of the threats … digitization of software software, the rise of cloud gaming,” Wisink said. “Gamestop continues until we get out in three or four years. We have to rediscover ourselves in terms of the situation. “
A ‘Blockbuster Era’
“We’re entering a kind of blockbuster era,” said Carolina Milanesi, a tech analyst at research-based Creative Strategies. For effect gaming. “
To survive, Gamestep may have to evolve.
“You can just become a merchant store that is connected to gaming and can also sell accessories, for example,” Milanese said. “You’re changing your DNA, you name it and you become someone else, it’s possible.”
Gamestop has survived the epidemic and closed stores, and will benefit from new console launches since customers will have reason to return to stores, said Michael Pachare, an analyst at private financial services company Wedbush. “
The digital PS5 is a first for Sony, but it’s not for gaming. Xbox has done so by launching a digital version of the Xbox One S in 2019, which Patcher said “barely made a ripple.” The Xbox Series S follows a similar trend, but has lower resolution graphics and less Mainstay more storage than the Xbox Series X.
“People who want to trade in games will buy more expensive PS5s and will continue to buy discs,” said Michael Patcher, an analyst at private financial services company Wedbush. “As long as there is a version of the disk drive, there will still be disks and Gamestop will continue to sell them.”
An unexpected gold mine
It just depends on what Gamestop is able to do with that customer data. The company also owns Gaming Magazine, Game Informer, and one of its recent shareholders is co-founder of pet supply ecommerce store Chevy, Ryan Cohen. Than last year. The stock price has risen 78.30% to 4.45 dollars, reflecting optimism over the next national-console.
“We know one thing about Chevy, it’s built from customer data at the center of everything,” Wisink said. Use that data to push customer loyalty, repeat purchases and Subscription services.
.