GameStop Forms Strategic Accord With Microsoft

GameStop jumped as much as 27% after a strategic partnership with Microsoft gave investors fresh optimism that the video-game retailer can turn around its business. From a report: Under a multiyear agreement, GameStop will use Microsoft's cloud services to handle business operations, including finance, inventory and e-commerce, according to a statement Thursday. In-store workers also will use Microsoft Surface devices while they're helping customers. And GameStop will offer Xbox All Access, a monthly service for the Xbox gaming console. GameStop is expected to get a surge in sales when new video-game consoles arrive in coming weeks, and the Microsoft partnership could help them extend the momentum. A new Xbox and Sony PlayStation are debuting next month, which should drive traffic to GameStop's stores and e-commerce site.

nah

[bugs2squash]

Their business model is stumbling. Time for the vultures to swoop

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[s4080326]

Their business model is stumbling. Time for the vultures to swoop

Gamestop or Microsoft?

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[rtb61]

Based upon past partnerships with M$, they intend to suck out what little information from gamestop there is and start their own click and mortar gaming retail setup. There are many opportunities for merchandise sales if you can get them to the store and downloading a game to a USB stick at the store actually makes sense if you get to sell the stick and pick up opportunity sales.

Should do a pool on how long it takes M$ to suck gamestop dry and abandon them and then pick them up cheap on bankruptcy for the s

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[Way, Way Smarter!]

Their business model is stumbling.

And this does nothing to change that. It's pure window dressing.

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[sethmeisterg]

Totally agree.

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[thegreatbob]

Maybe we can lash EA to it and see if we can get a twofer as the swirly gurgle cometh.

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[thegreatbob]

(I will at least admit that EA appears to be doing better on the nickle-and-dime front... haven't followed closely enough to say on the "shoebox full of the cremains of once-great software production groups" front, nor on the "unsheltered heap of neglected properties in the back yard")

MS Shills?

[fermion]

Ok, so MS failed miserable at retail and is now going to use another retail chain, how has no relevance in a world without physical fame media, to be expensive propaganda for MS products. But why would this bring in any customers? Almost no one went to a MS store to buy anything, and MS was not willing to run it as a loss leader. Even if MS is given services away in exchange for branding, someone has to pay the employees and rent.

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[tlhIngan]

Ok, so MS failed miserable at retail and is now going to use another retail chain, how has no relevance in a world without physical fame media, to be expensive propaganda for MS products. But why would this bring in any customers? Almost no one went to a MS store to buy anything, and MS was not willing to run it as a loss leader. Even if MS is given services away in exchange for branding, someone has to pay the employees and rent.

FIrst, there weren't that many Microsoft stores out there. Second, I'm sure th

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[Luthair]

Thats an interesting take, here's a truthful one - Microsoft sold a multi-year services contract to GameStop and investors in GameStop are idiots.

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[account_deleted]

Comment removed based on user account deletion

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[sound+vision]

Bethesda is an innovator. They were one of the first developers to turn paying customers into free beta testers. Years before it became industry best practice!

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[Can'tNot]

Gamestop was a neutral retailer, at least among consoles, and they still represent a large portion of total console sales. If Microsoft can do this while strongly implying to Gamestop execs that they should favor Xbox sales, this could give MS an edge in the upcoming console generation.

I could also picture MS using this to try and push a Steam competitor. Retail sales of PC games are basically nonexistent now, but that doesn't mean that everyone likes this situation. (I don't like this situation... PC ga

Wrong people, wrong decisions

[dicobalt]

A 27% jump in stock because they're streamlining clerical work? Please for the love of all things decent, take that money out of these people's hands, they do not deserve to have it, put it to proper use somewhere else. Brick and mortar new game stores are only for markets with poor internet, it's a fact, deal with it. Either compete online or die.

Time to short it

[Kohath]

I think I will buy put contracts.

GameStop isn't hurting because they need back office improvements. They're hurting because there's no reason to go to GameStop. New console boost will be over in 2 quarters. And Funcopop sales aren't going to make up for traffic lost to online and digital.

And so Gamestops Behelit activated.

[Dirk Becher]

Calling forth the god hand who make you an offer you can't refuse.

Soul sucking executives try to remain relevent.

[Revek]

Seriously, have you watched this guys channel? [youtube.com]
This guy is a super nerd he should have our support.

Picking the meat off the bones

[doubledown00]

FTA:
GameStop will use Microsoft's cloud services to handle business operations, including finance, inventory and e-commerce, according to a statement Thursday.

So Gamestop agrees to pay Microsoft to host their business functions and rent Surface devices for use in their stores.
How does giving Microsoft more of their money fix the fundamental shift to digital downloads that is killing Gamestop's business model?

Strategic accord?

[sabbede]

Makes it sound like it should be signed at Camp David, right?