Gaming Model Shift Challenging GameStop

One of Oppenheimer analysts’ key takeaways from the Electronic Entertainment Expo (E3) revolved around a shift in the publisher business model, one they see as particularly challenging for GameStop Corp. GME.

In Oppenheimer’s view, game publishers are increasingly focusing less on releasing new titles and updated versions and more on monetizing existing games with add-on content and by extending compatibility of new systems with older games.

Called recurrent consumer spending, it mimics the gaming found often on smartphones with in-game purchases of level-ups, virtual currencies, etc.

The saving grace for GameStop may be its 6 percent yield, making it attractive for income investors.

GameStop closed up 1.5 percent at $26.13 Wednesday.