GameStop Stock Suffers With the Announcement of Xbox Game Pass
Microsoft just announced their Netflix-esque gaming service, Xbox Game Pass, which will allow gamers to pay a monthly subscription to play games via streaming. While many gamers are celebrating a chance to essentially rent games at a low monthly rate, video game retailer GameStop may be facing some hard times. Soon after the announcement, GameStop stock prices took a turn for the worse as they dropped significantly.
A shocking 8.5% drop in GameStop stock share prices happened in less than 24 hours following Microsoft’s announcement. Physical copies of games are slowly fading away as more and more people have access to digital libraries. There are still plenty of physical copies of games that are sold each day, but the numbers are diminishing. GameStop’s saving grace is that consumers can trade in their old games for cash or store credit to purchase new and/or used games. The streaming service will allow players to play their games for as long as they hold an active subscription, and when they are finished, they simply choose another game to play. This has share holders a little concerned for the future of the retail stores.
Xbox Game Pass is set to become available in some time in the spring of 2017, and will have over 100 games to choose from. Players can expect a wide variety of Xbox One and Xbox 360 backwards compatible titles. Exactly which games have not been officially announced as of yet. The platform may result in less used game sales for GameStop, although there will always be a market for physical game discs among collectors, those without high speed internet, and those that just love having their games displayed on their entertainment centers. Share holders may have jumped the gun a little, but time will tell.
What do you think of the Xbox Game Pass? Do you think that the GameStop stock drop shows the potential end of an era for the chain? Do you prefer digital or physical copies of games? Let us know in the comments section below or talk about it on our official Disqus channel. To stay up to date with 24/7 gaming and entertainment news, be sure to follow us on Twitter.
Jon McAnally376 Posts
Hailing from the armpit of California, this most radical of nerds loves video games, comics, and collectibles (not dolls). Prepare to feast your eyes on the magical wonder that is his editorials.