14 DAY TRIAL // GameStop, the biggest specialist retail chain linked to video games, is seen by many as a barometer for the health of the industry overall and two analysts believe that in the coming year the company will perform well mainly because of the launch of new gaming hardware.
Michael Pachter, who is an analyst looking at the video game space for Wedbush Morgan, has stated in a note to investors that GameStop has been affected by the decline in overall hardware sales, especially those of the Nintendo Wii, but 2012 can be a banner year as the store is ready to host launches for the PlayStation Vita handheld, which arrives in late February, and the Nintendo Wii U, which will probably appear during the summer.
There’s also the possibility that GameStop will profit from the launch of a new PlayStation or Xbox console, although no official announcement has yet been made by Sony or Microsoft.
An analyst from Sterne Agee was also optimistic, saying that both new consoles from the major hardware companies will use physical media as the main way for content delivery, which means that GameStop will still play a crucial role in getting games to players.
GameStop will also benefit from increased digital game sales, increases in the used game market and in a rise when it comes to sales of tablets and smartphones.
The company has recently reported that the holiday sales period has been less favorable than usual, posting only a minimal increase in the value of games and hardware it has sold for the nine week before December 31 of 2011.
Overall sales came in at 3.02 billion dollars (2.36 billion Euro), with the weak performance of the Nintendo Wii and an overall decline in hardware sales to blame for the essentially flat results.
The best video game performers were Modern Warfare 3, Skyrim and Assassin’s Creed: Revelations.