Benchmark analyst Michael Hickey recently predicted that digital downloads could replace physical game discs within the next five years.
That may be good news for publishers that want to sell directly to consumers, but it could be the beginning of the end for GameStop GME. Could new hardware change that, or at the very least extend the retailer's life?
"People definitely have to go to stores to buy hardware unless you buy through Amazon or an online retailer," Hickey told Benzinga. "Is new hardware coming in…sooner rather than later good for GameStop? Yeah, for sure. Once the console is in the home, however, there's an increasingly vibrant ecosystem of software that's available for digital download."
PlayStation 4 and Xbox One are barely a year old, but the 20-month-old Wii U could be replaced in 2018. This would bring new hardware to GameStop outlets a full year before the anticipated online transition is complete.
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Posted In: Analyst ColorNewsSuccess StoriesAnalyst RatingsTechInterviewBenchmarkgamestopMichael HickeyMichael PachterMicrosoftNintendoPlayStation 4WedbushWii UXbox One
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