GameStop’s stock price has dropped nearly 8 percent today following Xbox boss Phil Spencer revealing the Xbox Game Pass service. This is a program where Xbox One owners can pay $10 per month to have unlimited access to over 100 Xbox One and backward-compatible Xbox 360 games. Of course, these are all digital games that you download from Microsoft’s Xbox Game Store, and it’s likely that investors are seeing this as a major threat to GameStop.
And an instant library on a console like Xbox One could potentially eat into GameStop’s sales. The brick-and-mortar retailer makes quite a lot of its money from secondhand sales where it resells products that consumers have traded in.
Not surprising. A good chunk of GameStop's business comes from selling older pre-owned titles that don't exist much on the market in terms of new copies. If these sort of programs begin catching on it could be pretty bad news for them.
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