Obliterator
Member
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.
More at the link
http://venturebeat.com/2017/02/28/gamestop-stock-price-tanks-after-microsoft-announces-new-digital-gaming-service/