GameStop To Launch Streaming Games, Says Piper Jaffray

GameStop (NYSE: GME), with the acquisition of two tech businesses, will now be able to deliver streaming video games to internet enabled devices. Piper Jaffray, maintaining its Underweight rating for GME, expects this new endeavor to be a struggle, saying, “While we applaud the company's efforts to re-invent itself on-line; we expect it will be an uphill battle. Launching a streaming games business presents vast technological challenges, is very expensive and the category is already competitive - including Nintendo, Microsoft & Sony. Details remain limited, and we need more information on the technology and content availability before we can form a final opinion. That said, our initial take is that the GameStop brand will be a big advantage; but demand for streaming front line content is limited, on-line games is not a core competency and competition is great.”GME has a PT at $17 and closed yesterday at $22.52.