Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Game On, Amazon

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

You can check off video games as the next item on's (Nasdaq: AMZN  ) quest to create digital-distribution alternatives to its most popular storefront categories. The company is acquiring Reflexive, an online seller of PC and Mac game downloads.

Reflexive has deals in place for more than 1,100 premium games in its arsenal, and dozens of free Web games as ideal gateway drugs. The company also offers an attractive value proposition to diehard gamers, since it doesn't limit the number of times you can install a game once you've purchased it.

Reflexive is a nice catch for Amazon. It also fits right in with the company's recent push toward providing digital solutions to the products it also sells in the physical world:

  • Its breakthrough Kindle is enhanced by its ever-widening library of available e-books.
  • Taking on Apple's (Nasdaq: AAPL  ) iTunes juggernaut, Amazon offers MP3 downloads with no copy-protection restrictions.
  • Amazon also sells digital video, even directly into TiVo (Nasdaq: TIVO  ) DVRs.     

With Amazon diving digitally into all of its old-school media platforms, it was really just a matter of time before computer games joined the mix. Console games would be a bigger catch, but the console makers themselves, like Microsoft (Nasdaq: MSFT  ) with its Xbox Live Marketplace and Nintendo (OTC BB: NTDOY.PK) with its Wii Store, are pretty much cornering that market. Computer games offer a more open opportunity, and Amazon's been smart enough to acquire an established player instead of starting from scratch.

The actual terms of the deal are not being made public, but it's unlikely to break the bank at Amazon. The buyout is also a great move for Reflexive; the digital store will now reach a wider audience, especially as Amazon markets the service to customers who buy other computer games -- or even new computers.

Well played, Amazon. Now show the physical distribution model some love, and go buy Gamefly, too.

Other chapters in Amazon's ongoing story:

Microsoft is a Motley Fool Inside Value recommendation. Nintendo, Apple, and are Motley Fool Stock Advisor recommendations. Try any of our Foolish newsletters services free for 30 days.

Longtime Fool contributor Rick Munarriz wonders whether Amazon will find a way to digitally deliver gourmet foods and lawn furniture, too. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. He does not own shares in any of the companies in this story, save for TiVo. The Fool's disclosure policy is eligible for free Super Saver Shipping.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 760045, ~/Articles/ArticleHandler.aspx, 10/13/2015 11:21:58 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rick Munarriz

Rick has been writing for Motley Fool since 1995 where he's a Consumer and Tech Stocks Specialist. Yes, that's a long time. He's been an analyst for Motley Fool Rule Breakers and a portfolio lead analyst for Motley Fool Supernova since each newsletter service's inception. He earned his BBA and MBA from the University of Miami, and he now lives a block from his alma mater.

Today's Market

updated 2 hours ago Sponsored by:
DOW 17,081.89 -49.97 -0.29%
S&P 500 2,003.69 -13.77 -0.68%
NASD 4,796.61 -42.03 -0.87%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/13/2015 4:00 PM
AMZN $548.90 Down -1.29 -0.23% CAPS Rating: ***
AAPL $111.79 Up +0.19 +0.17%
Apple CAPS Rating: ****
MSFT $46.89 Down -0.11 -0.23%
Microsoft CAPS Rating: ***
TIVO $9.23 Down -0.08 -0.86%
TiVo CAPS Rating: **