PlayStation Now Results in GameStop Stock Price Drop

[Andy Chalk]

PlayStation Now Results in GameStop Stock Price Drop

GameStop shares dropped by more than eight percent today following Sony's announcement of the PlayStation Now streaming service.

Announced today at CES [http://www.escapistmagazine.com/news/view/131089-PlayStation-Now-Streaming-Service-Unveiled-at-CES-2014] and set to launch this summer, PlayStation Now is a streaming service that will allow customers to play older games on newer hardware, including tablets, mobile phones and of course PS3 and PS4 consoles. With a selection of titles going all the way back to the original PlayStation, it's effectively a way of incorporating backward-compatibility into new hardware without having to actually build it in, at least for customers who have the pipe to handle it.

But what's good for the PlayStation-owning goose isn't necessarily good for the retail gander, as GameStop's share price took a rather precipitous drop in the wake of the announcement. After opening at $48.45 today, GameStop Corp [https://www.google.com/finance?q=NYSE:GME&sa=X&ei=GXPMUtaCK8_TqQGL1YGoBA&ved=0CEgQ2AEwAA]. dropped to a low of $43.60 by mid-afternoon and is currently sitting at just over $44, a loss of more than eight percent of its overall value. Analyst David Schick of the investment firm Stifel downgraded GameStop from "buy" to "hold," noting that its "prospects for software sales are incrementally worsened" by PlayStation Now.

Sony has not yet announced any pricing details and questions about how its infrastructure will hold up under the strain of heavy game streaming remain unanswered, but in the long term, this is the future: The slow death of mainstream videogame retailers by a thousand digital cuts.

Source: Fox Business [http://www.foxbusiness.com/markets/2014/01/07/gamestop-hit-on-new-sony-game-service-rating-cut/]


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[Roxas1359]

I used to be a person who loved shopping at GameStop as it was convienent and cheap. But over time I've seen their policies get worse and worse. Being less "Power to the Players" and more "Power to our corporate offices." The thing that finally put me off GameStop was the fact that they've reprinted Xenoblade Chronicles and the Metroid Prime Trilogy, and have opened the packaging, and thus call them "Used". As a result, the prices of buying these new-used games are close to $100. Then I find myself more nowadays buying games for older systems, something that GameStop no longer caters too.
I feel bad for the lower people who work for GameStop, but I have no sympathy for the higher up CEOs losing money.

Especially since GameStop has pretty much a monopoly on game retailing and I've seen many Mom and Pop stores fall because of it. Some are suriving now though because they sell retro games, and GameStop only sells newer games. It won't be long before they stop supporting the Wii in the shops as well.

 

[james.sponge]

Wouldn't it be cheaper to just make their console backward compatible? oh yeah pro-consumer approach, why give it for free when we can monetize it. I actually feel quite cheated I already paid for my psx, ps2, ps3 library, will we have to pay for games we already own?

 

[heroicbob]

Wouldn't it be cheaper to just make their console backward compatible? oh yeah pro-consumer approach, why give it for free when we can monetize it. I actually feel quite cheated I already paid for my psx, ps2, ps3 library, will we have to pay for games we already own?

i guarantee that if they included a cell processor in the ps4 it would be monstrously expensive

 

[WeepingAngels]

Wouldn't it be cheaper to just make their console backward compatible? oh yeah pro-consumer approach, why give it for free when we can monetize it. I actually feel quite cheated I already paid for my psx, ps2, ps3 library, will we have to pay for games we already own?

You wouldn't have got BC for free but yeah, rebuying shit I already own is uncool. PS4 should atleast have an emulator for PS1 and PS2 games.

 

[major_chaos]

The thing that finally put me off GameStop was the fact that they've reprinted Xenoblade Chronicles and the Metroid Prime Trilogy, and have opened the packaging, and thus call them "Used". As a result, the prices of buying these new-used games are close to $100.

As compared to getting them on Ebay/amazon where they were... $100+ USD used? I never understood why that incident made people angry, I got what was functionally a new copy of Xenoblade for less than what I was gonna pay for a used copy in god knows what condition on the net, I'm not gonna complain.

OT: Blarg. As one of the ten people who despises and distrusts DD (and is throughly unimpressed with Playstation-Now to boot) this makes me sad. The day physical retail goes away might be the day I quit gaming, and will absolutely be the day I quit console/handheld gaming forever.

 

[WeepingAngels]

The thing that finally put me off GameStop was the fact that they've reprinted Xenoblade Chronicles and the Metroid Prime Trilogy, and have opened the packaging, and thus call them "Used". As a result, the prices of buying these new-used games are close to $100.

As compared to getting them on Ebay/amazon where they were... $100+ USD used? I never understood why that incident made people angry, I got what was functionally a new copy of Xenoblade for less than what I was gonna pay for a used copy in god knows what condition on the net, I'm not gonna complain.

OT: Blarg. As one of the ten people who despises and distrusts DD (and is throughly unimpressed with Playstation-Now to boot) this makes me sad. The day physical retail goes away might be the day I quit gaming, and will absolutely be the day I quit console/handheld gaming forever.

Wasn't the issue that you could have gotten it new for $50 if Gamestop were honest?

 

[james.sponge]

Wouldn't it be cheaper to just make their console backward compatible? oh yeah pro-consumer approach, why give it for free when we can monetize it. I actually feel quite cheated I already paid for my psx, ps2, ps3 library, will we have to pay for games we already own?

i guarantee that if they included a cell processor in the ps4 it would be monstrously expensive

well cell processor was more of a gimmick, pretty useful in mathematical calculations, not very good in 3d gaming (which was like the whole point of ps3) not to mention the fact sony spend billions on developing this thing instead of just using stuff from intel/amd like any sensible console manufacturer would do. Not a console developer myself but I'm guessing PS4 is more than capable of emulating ps3 given proper software. How hard could it be for sony to make it possible on their flagship hardware - they made the god damned thing, their engineers now all the tricks and secrets. If I'm mistaken please tell me.

 

[major_chaos]

Wasn't the issue that you could have gotten it new for $50 if Gamestop were honest?

I don't see why you would expect that. The market value of a used copy of that game was around $100 at the time (and even now its around $70). Besides the stock seems to have been very limited and if they had for some reason sold them at $50 it seems likely that people looking to make a quick buck would have just tried to buy all that up and then turn around and sell them at the same old $100 price point.

 

[-Dragmire-]

Especially since GameStop has pretty much a monopoly on game retailing and I've seen many Mom and Pop stores fall because of it. Some are suriving now though because they sell retro games, and GameStop only sells newer games. It won't be long before they stop supporting the Wii in the shops as well.

I wish a store around me still sold older games, EBGames doesn't take or hold snes games anymore so I lost my sole place to physically browse them.

[small]Sigh, I'll get an original copy of Chrono Trigger some day...[/small]

 

[WeepingAngels]

Wasn't the issue that you could have gotten it new for $50 if Gamestop were honest?

I don't see why you would expect that. The market value of a used copy of that game was around $100 at the time (and even now its around $70). Besides the stock seems to have been very limited and if they had for some reason sold them at $50 it seems likely that people looking to make a quick buck would have just tried to buy all that up and then turn around and sell them at the same old $100 price point.

Uh, don't you expect Gamestop not to open every other new game and sell it as used? Hell, even when they do open new games, they sell them as new.

 

[heroicbob]

Wouldn't it be cheaper to just make their console backward compatible? oh yeah pro-consumer approach, why give it for free when we can monetize it. I actually feel quite cheated I already paid for my psx, ps2, ps3 library, will we have to pay for games we already own?

i guarantee that if they included a cell processor in the ps4 it would be monstrously expensive

well cell processor was more of a gimmick, pretty useful in mathematical calculations, not very good in 3d gaming (which was like the whole point of ps3) not to mention the fact sony spend billions on developing this thing instead of just using stuff from intel/amd like any sensible console manufacturer would do. Not a console developer myself but I'm guessing PS4 is more than capable of emulating ps3 given proper software. How hard could it be for sony to make it possible on their flagship hardware - they made the god damned thing, their engineers now all the tricks and secrets. If I'm mistaken please tell me.

im not very technical i just know that there would be serious dips in performance

i did a quick search and i think these links would explain it better than i ever could

http://beyond3d.com/showthread.php?t=61205

http://forum.xbitlabs.com/viewtopic.php?t=18077

 

[Hairless Mammoth]

Isn't Gamestop about to drop PS2 titles in their brick and mortar stores anyway? It's been a long time, but in my last visit to one, I only saw a bargain bin full of titles than belonged in that bin even when they first came out. Add to that the two facts that they are still places in the US with shite internet and some people don't want to pay a rate to play a game when there's still a Gamestops with PS3 games or a Mom and Pop store in walking distance. This is all the typical stock shenanigans, were news of something that won't be out for months might affect the company slightly and a tiny amount of people go "SELL, SELL, SELL."

 

[Roxas1359]

The thing that finally put me off GameStop was the fact that they've reprinted Xenoblade Chronicles and the Metroid Prime Trilogy, and have opened the packaging, and thus call them "Used". As a result, the prices of buying these new-used games are close to $100.

As compared to getting them on Ebay/amazon where they were... $100+ USD used? I never understood why that incident made people angry, I got what was functionally a new copy of Xenoblade for less than what I was gonna pay for a used copy in god knows what condition on the net, I'm not gonna complain.

Because if you were to go on GameStop before it removed the option of the games being "new" then you'd see that they were charging $60 for it new, but when it was reprinted it was suddenly $90 for a "used" copy. Then they came out and were saying that they "suddenly" got a large amount of people turning in the game. Except when you see the case it's completely different from the original launch case. This is also apparent with the Metroid Prime Trilogy case, because the Metroid Prime Trilogy in it's original print was in a tin case with a see through sleeve on the front. The reprint was in a standard white Wii case, with paper artwork. Plus the online price has gone down and is cheaper than the GameStop one at times. Hell I got mine online for $58 with the original case, reversible artwork, the Club Nintendo insert, and the game manual.

Plus when I talked with people who I knew at GameStop they came out and told me that the games are actually brand new, but their bosses say that they must be sold used because that's what the coporate office told them to do. Now that's anecdotal, so I'm not gonna hold that as being entirely 100% true, but NeoGaf and others did investigating and found it to be true in a lot of cases.

 

[Roxas1359]

I wish a store around me still sold older games, EBGames doesn't take or hold snes games anymore so I lost my sole place to physically browse them.

[small]Sigh, I'll get an original copy of Chrono Trigger some day...[/small]

You should have ordered it from Square Enix, since your console would be an NTSC console. During Christmas they had a game sale and they were selling physical copies of Chrono Trigger for only $7.50. In fact, mine came in the mail the other day on Saturday.
Now I think it's a reprint, but it's still a physical copy of the game if you'd want.

Isn't Gamestop about to drop PS2 titles in their brick and mortar stores anyway?

They already dropped the PS2, they dropped the PS2 officially on June 1st, 2012.
GameCube support for GameStop dropped on April 2nd, 2012.

 

[Erttheking]

Well, as someone who has never owned a Playstation, I'm actually looking forward to this. Good chance to get some games I never got a chance to play.

 

[major_chaos]

Uh, don't you expect Gamestop not to open every other new game and sell it as used? Hell, even when they do open new games, they sell them as new.

Why would I care? If they were resealing used games and selling them as new that would be an issue, but if they wanna undercharge me for a product by selling a functionally new game for the price of a used one I'm not gonna complain.

Plus the online price has gone down and is cheaper than the GameStop one at times. Hell I got mine online for $58 with the original case, reversible artwork, the Club Nintendo insert, and the game manual.

I got my copy from GS (which we have established was only different from a new copy by virtue of the plastic being open) for around $60 after coupons, the link you provided has new copies at over $100 and used at over $60. From where I'm sitting I got a good deal.

 

[Shadow-Phoenix]

It's only a matter of time until we're forced into that new fangled "digital future" age.

I feel sorry for the Employees at Gamestop because i know they'll lose their jobs in no time flat, I've been there many a time.

 

[Roxas1359]

I got my copy from GS (which we have established was only different from a new copy by virtue of the plastic being open) for around $60 after coupons, the link you provided has new copies at over $100 and used at over $60. From where I'm sitting I got a good deal.

Because you have an original print of the item, and original prints are always more expensive and worth more than reprints or a greatest hits, which is just a reprint. Your copy as being an original is worth more, but in this case GameStop is selling you a reprinted Greatest Hits, claiming it to be used when it's new, and charging you $20-$30 more than how it initially cost when it was released. Also keep in mind your copy was a limited print which is why it costs so much now for original prints.