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. (NYSE: 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 and more.
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.
Latest Ratings for GME
Date | Firm | Action | From | To |
---|---|---|---|---|
Oct 2020 | Jefferies | Downgrades | Buy | Hold |
Sep 2020 | Telsey Advisory Group | Upgrades | Market Perform | Outperform |
Sep 2020 | Jefferies | Upgrades | Hold | Buy |
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