GameStop Corp. (GME) News: Earnings Drop, Promise to Clients, Negotiation to Seal Opportunity

GameStop Has 2,500 Days to Live or Die (Fool)
GameStop Corp. (NYSE:GME) has recently benefited from the announcement that the Xbox One and PS4 PlayStation will support used games. This gives GameStop Corp. (NYSE:GME) time to not only generate easy revenues from its used game sells but also to figure out what to do with itself after the Internet likely replaces physical game sells as a source of video games. The current life expectancy of new physical game sells is around seven years, or 2,500 days, so if it looks ahead to the challenge of marketing Internet downloads, long-term prospects are good. If GameStop Corp. (NYSE:GME) rests on its laurels or old business model, it could be in for a rude shock. Right now, the company produces $500 million in free cash flow or a 10% cash flow relative to its market cap, the business is cheap, and there’s a 33% short position on the company that could turn into a short squeeze if this Christmas brings a successful launch of its new products.

GameStop Assures Consumers that PS4 and Xbox One Games Can Be Resold (GamePolitics)
While Microsoft Corporation (NASDAQ:MSFT) is being a little bit cagey about how it will handle used games on Xbox One, GameStop Corp. (NYSE:GME) is trying to reassure consumers that next-generation games will be able to be bought and sold. Speaking to Forbes, GameStop Corp. (NYSE:GME) president Tony Bartel explained why having the ability to buy and sell games is important as consoles transition. “Both Sony and Microsoft Corporation (NASDAQ:MSFT) have said games can be resold and that’s exactly what we anticipated. It’s a recognized way to make these games more affordable. All three new platforms understand that,” Bartel told Forbes.