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How GameStop Is Thriving in a Digital World

GameStop (NYSE: GME  ) 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 (NASDAQ: EA  ) reporting record digital revenue, GameStop just managed its best sales results in years. Sure, the retailer had some help from Take-Two Interactive (NASDAQ: TTWO  )  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.

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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 November 27, 2013, at 8:10 PM, Mattenth wrote:

    This author has published several articles over the past month clearly slanted towards GME. He is clearly slanted on this company.

    GME is a dying. There's a momentary blip from Grand Theft Auto and the new consoles, but consumer patterns have shown a step and consistent decline in retail console gaming.

    The very notion that GME will thrive and grow from digital is absurd.

    And in fact, it's already happened. Japanese video game retailers are going out of business with Nintendo's new push to digital. PC gaming hardly exists at retail and is just as hardcore as consoles.

    Finally, digital unlocks too many new businesses models that simply cut out the retailer. For the first time ever, consoles have upcoming MMOs, free to pay, and episodic titles. All of these cut out the retailer to the benefit of consumers.

    Oh, and none of this even mentions cloud gaming... If that were to take off, GME could for overnight.

    GME is in trouble. There are too many market forces pudding it.

    Don't listen to this biased author.

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