Why GameStop Could Soon Get Exclusive Video Game Content

Despite its profit-sucking status as a middle man, GameStop is a video game publisher's best friend. Here's why.

Jul 11, 2014 at 6:07PM

Major new video game launches could soon feature built-in content that's exclusive to GameStop (NYSE:GME). A company spokesman confirmed this week that the retailer is looking to partner with game publishers early on in their development process to secure a mix of physical and digital content that's only for GameStop's customers.

In the video below, Fool contributor Demitrios Kalogeropoulos argues that the move makes great business sense for both GameStop and video game developers. Despite the fact that publishers such as Activision Blizzard and Electronic Arts make more profit by selling directly to consumers via digital delivery, GameStop remains their single biggest partner for retail sales -- by far. Last quarter, for example, the company was responsible for a whopping 49% of all software sales on the next-gen game consoles.

Another reason that publishers love GameStop, Demitrios notes, is its high software attach rate. The retailer sold roughly five games with each new console last quarter, or 70% more than its competitors. Retail success like that is a big reason why a deep partnership between GameStop and publishers makes sense, and should last for years to come.

Watch the video below for Demitrios' full take.

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Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool owns shares of GameStop. Try any of our Foolish newsletter services free for 30 days. 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.

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