GameStopping? – Analyst Blog
Source: http://www.zacks.com/stock/news/18532/GameStopping%3F+-+Analyst+BlogPosted on Wednesday, March 25th, 2009 | In Stocks to Watch
GameStop Corp. (GME) is scheduled to report 4th quarter results on March 26. The company is expected to report strong results thanks to the continued robust demand for video game systems and titles. Management’s outlook for 2009 should be pretty bullish as well.
However, there is a real risk that GameStop’s future results could suffer from a new technology. The potential “game-changer” (pardon the pun) is from a small-tech startup OnLive, which announced that it will offer high-end video games on-demand over the Internet — bypassing game consoles such as the Xbox 360 or PlayStation 3.
Gamers will connect to OnLive servers with their TV, PC, or Mac. The games will run in an OnLive game server. OnLive has been working on this technology for years, but the one of the roadblocks was game-response time. When playing a video game, the game has to respond to gamer actions (pushing buttons, moving left or right) instantaneously. If there is even the slightest delay, gamers will notice and not use the platform. OnLive believes it has overcome this problem and boasts ultra-high-performance gameplay.
In the short term, GameStop’s results will not be affected by OnLive, as it won’t roll out its external beta testing until the summer 2009 with plans for going live in the winter 2009.
However, this new technology could dramatically alter the video game landscape, especially if OnLive can deliver on its promise of any game, anytime, anywhere. Gamers would be able to play old and new video games without spending hundreds of dollars, and, more importantly to GME shareholders, without making a trip to GameStop.
Read the full analyst report on “GME”
Zacks Investment Research
Last 5 posts by Zacks Market Commentaries
- Forest Misses on Lower Sales - Analyst Blog - November 6th, 2009
- EOG Resources Remains Neutral - Analyst Blog - November 6th, 2009
- Red Robin Fails to Lure Diners - Analyst Blog - November 6th, 2009
- CBS Tops Zacks Estimate - Analyst Blog - November 6th, 2009
- OGE Energy Tops Expectations - Analyst Blog - November 6th, 2009
Blog, Gamestop Corp, Mac, Stocks to Watch, video game systems;, Zacks Market Commentaries
 About Zacks Market Commentaries (http://www.zacks.com/)
Zacks Market Commentaries |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.