GameStop analysts split on digital download threat
Wall Street analysts are split over whether video game retailer GameStop (GME) is doomed to suffer the same fate as Blockbuster Video, following news that Electronic Arts (EA) is launching a subscription online game service. Benchmark analyst Mike Hickey said the future isn’t bright for GameStop’s brick-and-mortar stores. EA’s new service, EA Access, will allow owners of Microsoft’s (MSFT) Xbox One console to play downloadable catalog games from EA for a low subscription price ($4.99 a month or $29.99 for the annual plan). EA Access members also will get 10% discounts on new games and add-on content, plus the ability to play trial versions of upcoming games up to five days before they launch. “For GameStop, we see this as a decided negative, as the program could dismantle their core value proposition (used trade) and their core business (physical delivery of goods), both of which should prove to be an…