How GameStop Is Thriving in a Digital World

By Demitri Kalogeropoulos – Updated Mar 3, 2017 at 4:18PM

NYSE: GME

GameStop

Market Cap

$3B

Today's Change

(1.50%) $0.15

Current Price

$10.16

Price as of April 23, 2024, 4:00 p.m. ET

Why digital downloads aren't killing this video game retailer.

GameStop (GME 1.50%) isn't just surviving as the video game industry marches toward a digital sales model -- it's thriving. In the video below, Fool contributor Demitrios Kalogeropoulos explains how. With game publishers like Activision Blizzard (NASDAQ: ATVI) and Electronic Arts (EA 0.02%) reporting record digital revenue, GameStop just managed its best sales results in years. Sure, the retailer had some help from Take-Two Interactive (TTWO 1.26%) and its blockbuster Grand Theft Auto V release.

But GameStop also logged steady growth in its mobile and digital initiatives as well. And, most importantly, the company is making full use of trade-in business to give it a critical pricing advantage over competitors. That points to continued outperformance for the retailer through the holiday season, Demitrios argues.

Fool contributor Demitrios Kalogeropoulos owns shares of Activision Blizzard. The Motley Fool recommends and owns shares of Activision Blizzard. It recommends Take-Two Interactive and owns shares of GameStop. We Fools may not 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.