Saturday, July 26, 2014
GameStop To Be The Biggest Beneficiary Of PS4, Xbox 720 Launches – Analyst

GameStop To Be The Biggest Beneficiary Of PS4, Xbox 720 Launches – Analyst

Wedbush Morgan Securities analyst Michael Pachter believes GameStop will see the most gains from the launch of next generation consoles, as Sony and Microsoft gear up to launch their new machines later this year. It’ll be a fight for the living rooms of Americans, Europeans, Japanese and people all over the world.

“We have high hopes that the PS4 and next Xbox launches will renew investor interest in the publishers,” Pachter said in a note today, adding that Activision’s stock has the “most potential.” The biggest gains, however, may be seen by GameStop.

“We expect Microsoft to announce its console in the next few months, and at the latest at the E3 Expo in mid-June. Although we think that Microsoft aspires to position the next Xbox as the entertainment hub in the living room, suggesting a possible launch delay, we think that the company is intent upon gaining further market share next cycle. As such, we think that the company intends to launch alongside the PS4, and we expect gamers to have two next-generation consoles to choose from this fall,” Pachter commented.

“The biggest beneficiary of all this is GameStop,” he continued. “The company thrives in a product refresh cycle, and its used business typically spikes, as many gamers trade in old systems and software to generate currency so that they can buy new systems. There has been some speculation that the PS4 and the next Xbox will block used games, but Sony’s studio head, Shuhei Yoshida, stated firmly that the PS4 will not block used games. We think that Microsoft would be foolhardy to do so if Sony does not, as we believe that gamers will favor the console that provides them the greatest number of options; in our view, should one manufacturer block used games and the other doesn’t, the latter manufacturer would most likely gain more than 20 percent market share. Accordingly, we do not expect either console to block used games, and we expect GameStop shares to rally for the balance of the year.”

Thanks, GI.biz.

About Ernice Gilbert

Ernice Gilbert here. Founder and Editor-In-Chief of Gamesthirst. Thanks for stopping by, make yourself at home!
  • Ghost250

    GameStop is trying to get on microsofts and sonys good side to keep used games around. otherwise gamestop is done.

  • nick

    captain obvious strikes again!
    sigh, wish i could get paid stating the obvious!
    ok here we go, the last of us is going to sell better than beyond two souls, the ps4 wont launch at 600 bucks, the ps4 will not see a worldwide launch, the next xbox will be the cheaper system of the two.
    now, wheres my check?

  • narwall14

    here nick 500 cupcakes lol

  • grahljguhian

    Wow. Famous last words. Phuck Gamestop. See you all on the downside over there dick towels. Ha ha. Worse company ever. Couldn’t have happened to more upstanding capitalists.