GameStop Tablet "A Step in the Right Direction," Says Sterne Agee's Arvind Bhatia

GameStop

is trying to be the pioneer of a new era in tablets. Can it succeed?

We'll have to wait till the tablet is released to know for sure. But if nothing else, Sterne Agee analyst Arvind Bhatia believes the company is making a smart move. “I think it's a step in the right direction in terms of adding new product to the store,” Bhatia told Benzinga this morning. Sales of the tablet could help replace the sales of packaged video games, Bhatia said, noting that digital distribution will slowly diminish their presence at retail. With regard to the used tablet market, Bhatia said that when consumers choose to sell something, it is a motivated decision. They sell because they want something – a new game or device – and decide that the new item is worth a trade. But the icing on the cake, Bhatia said, will be if the video game retailer can sell “new iOS and Android devices.” Finally, Bhatia spoke about the controller that GameStop

. “It makes sense,” he said, adding that the company is trying to be a “pioneer” in this space. Without knowing just how large the market for a controller may be, however, Bhatia said it's hard to gauge its potential success. Sterne Agee currently has a

on GameStop.