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Can GameStop Win Gamers Over With an Android Tablet?

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There's a new kid on the Google (Nasdaq: GOOG  ) Android block, and it's none other than video-game retailer GameStop (NYSE: GME  ) ! Hints were dropped earlier this year amidst a couple of not-at-all-related-to-physical-retail acquisitions.

GameStop is taking a novel approach to the tablet game. Rather than come up with new hardware in an already saturated market, the company has chosen an existing unnamed model that will be a "GameStop certified gaming platform," according to GameStop President Tony Bartel in an interview with GamesIndustry.

It will launch with a number of games pre-installed and bear the company's own branding. The company is currently in the testing phase, and the hardware will also come with a custom-designed dedicated controller, since it believes the full gaming potential of tablets can only be unlocked with a controller.

The ultimate goal will be to eventually stream console games directly to the device and embrace cloud gaming, similar to startup OnLive. Bartel also dropped some hints that the company may be working directly with developers to create games meant to utilize its specific controller and to be streamed directly to the tablet.

The retailer will sell the tablet alongside existing gaming hardware from the Big Three: Sony's (NYSE: SNE  ) PlayStation 3, Microsoft's (Nasdaq: MSFT  ) Xbox 360, and Nintendo's (OTC BB: NTDOY.PK) Wii. This comes just shortly after also getting into the Apple (Nasdaq: AAPL  ) iOS hardware market, acknowledging that platform's gaming capabilities.

Barnes & Noble's (NYSE: BKS  ) Nook has done better than expected, which could signal to other brick-and-mortar retailers that the tablet water's warm. With U.S. retail sales of video-game systems and software dropping 26% according to recent figures from NPD Group, this move to the clouds is a step in the right direction. GameStop's sales haven't been hurt as badly, declining by roughly only 3% last quarter from the previous year.

Cloud gaming is a young frontier. Bartel still thinks it's a little too early for the best gaming experience, but the move acknowledges that the potential is there. It's a fresh take on jumping into mobile. If the company can garner support from developers and provide a catalog of exclusive content tailored to its "certified" hardware and custom controller, it may have a shot at winning cloud gamers over.

Ultimately, any shot at the tablet market that doesn't include an Apple logo is bound to be slim. If nothing else, you have to at least give the company some credit for having a unique strategy.

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Fool contributor Evan Niu owns shares of Apple, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of GameStop, Apple, Microsoft, and Google. Motley Fool newsletter services have recommended buying shares of Microsoft, Apple, and Google, creating bull call spread positions in Microsoft and Apple, and writing covered calls in GameStop. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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.

  • Report this Comment On September 13, 2011, at 11:29 PM, jacobandersen72 wrote:

    is this good news for LOGITECH which makes joysticks for android and ipad tablets?

    http://www.logitech.com/en-ca/tablet-accessories/for-android...

  • Report this Comment On September 14, 2011, at 6:51 PM, Varchild2008 wrote:

    Good thinking on that except I do not believe Gamestop has yet revealed anything....

    The presser seemed to suggest GAMESTOP themselves was manufacturing the joysticks while someone else manufactured the tablet or tablets they are testing.

    Nonetheless, it would make sense if LOGITECH has a hand in the joystick's creation... But, we know virtually nothing at this point in time to be able to expect Pin Action off of this news story.

    And ultimately, the tablet has to be a success story before we can even talk pin action.

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