Why GameStop Corp. (GME) Is Still Relevant

By hosting second-tier expos and offering exclusive content, GameStop keeps itself in the cultural loop. It just so happens that its financial interests in used games align with gamers’ personal interests, but gamers aren’t going to turn down an extra voice in that fight just because they don’t like the pre-order system for Resident Evil 18: The Cake Factory. GameStop Corp. (NYSE:GME) has integrated itself with the culture in a symbiotic manner.

The bottom line
Let me reiterate: If used games disappear, I have no hope for GameStop. What I’m saying is that used games aren’t going to disappear because they’re integral to how gamers get content. To keep itself alive, GameStop needs to do one of two things. Either it can figure out how to keep the used-game model the same as it is now for years into the future or it can diversify itself into a better business. With the hype surrounding the upcoming Xbox and PlayStation launches, I’m guessing that it takes the used-game road.

The article Why GameStop Is Still Relevant originally appeared on Fool.com is written by Andrew Marder.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool owns shares of GameStop and Microsoft.

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