14 DAY TRIAL // GameStop has attracted many gamers’ antipathy. Some don't like it because it makes so much money on used games and because of the way it pushes blockbuster games to customers.
Most big videogame publishers do not like it because it makes huge profits from used games sales, even though the industry benefits from the business as money received by players is then quickly spent on new titles. And now the company might gain even more negative attention as it plans to use its brick and mortar domination to expand into the business of digital distribution.
Colin Sebastian, who is an analyst with Lazard Capital Markets, has stated as part of a conference that “GameStop historically has used acquisitions to expand into new markets, and digital is likely no exception. We believe a natural fit for a specialty game retailer would be a partnership with or acquisition of an aggregator of online games, which could be marketed toward the company’s core gamer customer base.”
The analyst is also saying that the digital distribution sales on the company's website doubled between 2007 and 2008, with a similar growth percentage expected for this year.
At the moment, GameStop is selling Xbox Live cards with points that can be used on the service, which is just a step away from creating a similar internal system. The chain is said to have plans to install kiosks in some of its stores, allowing a player to order and pay for downloadable content that will then be delivered to their gaming console at home before they get there.
Sebastian has also addressed the recent announcement of the PlayStation 3 Slim and the price cut, saying that Microsoft is likely to follow the trend and price the Xbox 360 in the same range, meaning that players will have a choice when it comes to picking up a cheaper home gaming console this Christmas.