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<blockquote data-quote="WaterBottle" data-source="post: 1432271" data-attributes="member: 19226"><p>Ive followed GME debate since last summer when it was $4. </p><p></p><p>My issue with the whole going digital argument is..."what is the value proposition, what are you offering that isnt already there?"</p><p></p><p>- direct download game sales? Steam has the PC market and direct-to-console is dominated by the console makers who control the content much like Apple controls the app store. Now if GME could become the steam of consoles, that would be massive. But the console makers already have the direct to console process established and blocked. Big barrier to entry there.</p><p></p><p>- PC Parts. Now youre competing with new egg, pcpartpicker, etc. The market is there but GME has zero market share and there are massive competitors established. Small margins too. I did a gear a rumor that GME was thinking about having a "DIY PC Maker" section in their stores, so anyone could basically go in and build/repair their PCs. I love that idea, but it is such a small niche that I don't see it being very valuable.</p><p></p><p>- Gaming toys and and apparel. This is a good segment for GME but I believe it's best served in person (brick and mortar) thing for various reasons I won't bore anyone with. If you go that route now you have the additional upkeep of physical locations.</p><p></p><p>Sure cohen took Chewy digital and crushed it. Hes got experience in saturated low margin markets. So he is your man if your banking on a turn around. But Chewy had first mover advantage (for the most part), digital game sales is already a massive industry with major barriers to entry.</p><p></p><p>GME has an active shelf offering and will take advantage of this squeeze in order to raise money. I don't see them managing to secure a significant share of the direct-to-pc download and I don't see them entering the direct-to-console download market as that is a closed market controlled by the console makers. I dont see GME going bankrupt, but I think it's going back to sub $50 levels. It's going to break a lot of hearts when it happens too.</p></blockquote><p></p>
[QUOTE="WaterBottle, post: 1432271, member: 19226"] Ive followed GME debate since last summer when it was $4. My issue with the whole going digital argument is..."what is the value proposition, what are you offering that isnt already there?" - direct download game sales? Steam has the PC market and direct-to-console is dominated by the console makers who control the content much like Apple controls the app store. Now if GME could become the steam of consoles, that would be massive. But the console makers already have the direct to console process established and blocked. Big barrier to entry there. - PC Parts. Now youre competing with new egg, pcpartpicker, etc. The market is there but GME has zero market share and there are massive competitors established. Small margins too. I did a gear a rumor that GME was thinking about having a "DIY PC Maker" section in their stores, so anyone could basically go in and build/repair their PCs. I love that idea, but it is such a small niche that I don't see it being very valuable. - Gaming toys and and apparel. This is a good segment for GME but I believe it's best served in person (brick and mortar) thing for various reasons I won't bore anyone with. If you go that route now you have the additional upkeep of physical locations. Sure cohen took Chewy digital and crushed it. Hes got experience in saturated low margin markets. So he is your man if your banking on a turn around. But Chewy had first mover advantage (for the most part), digital game sales is already a massive industry with major barriers to entry. GME has an active shelf offering and will take advantage of this squeeze in order to raise money. I don't see them managing to secure a significant share of the direct-to-pc download and I don't see them entering the direct-to-console download market as that is a closed market controlled by the console makers. I dont see GME going bankrupt, but I think it's going back to sub $50 levels. It's going to break a lot of hearts when it happens too. [/QUOTE]
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