Analysts Duke It Out Over Game Stop

Analysts who cover GameStop GME are currently up in the air when it comes to long, medium and short-term predictions about the company.

Prior to last weeks E3 conference the stock saw significance gains as anticipation and excitement over Microsoft's MSFT Xbox One and Sony'sSNE Playstation 4 previews seemed to have carried the stock to higher than expected levels.

But now that the smoke has cleared people are wondering, what's next for GameStop? The analysts in the business show some mixed views regarding the company's future.

One analyst from CL King and Associates was extremely optimistic on GameStop's short and long term prospects. He noted that he gave the company a Strong Buy rating and does not intend to change his stance. When asked about how Xbox One will affect GameStop's used game market, he said the play would have some negative restrictions. He went on to comment that Playstation 4's non-restrictive nature for used games would have a significant positive impact and would outweigh Xbox One negatives.

Another analyst from National Alliance Capital Markets had a completely differently take on the stock. He believed that Xbox One's restrictive nature would ultimately have a negative effect on the company in the long term. He went on to note that Microsoft had an “inability to reach mass markets” in the way that Sony and the Playstation 4 could. The analyst believes core gamers will carry the company's growth in 2014 but after that GameStop and its used game market will become a “hobby market.”

But yet another analyst, Scott Tilghman of B Riley and Company had yet another differing view on the stock. His take is rather neutral. When asked about Xbox One's impact on GameStop's used market Tilghman commented that the restrictions will have “no impact” on the company. He explained that Microsoft's restrictions allow only retail publishers, such as GameStop to rent out different games. He also noted that Microsoft might end up lifting this restriction.

Tilghman went on to say that gamers of this next console cycle would ultimately side with Sony's Playstation 4, and Microsoft is in need of a PR lift if it wishes to stay in line with expectations of the Playstation 4. Overall Tilghman believes that the introduction of these new consoles will increase games sizes and will ultimately favor GameStop's used market business.

GameStop closed Monday at $38.50.