Bookstores disappearing, music stores almost gone, video stores all but done -- and GameStop Corp. (GME) is next. Yes, it's days are numbered, we just don't know what that number is yet.

I have been pondering this for a while, off and on, and did a very limited survey of two teenage boys -- mine -- asking them their thoughts about GameStop. The 17-year-old was playing a game on his Apple (AAPL) MacBook Pro at the time. He said he downloads free games or buys them, but all from the Web. He knew he could buy used games inexpensively at GameStop but had never done so and thought this business activity would fade.

The 14-year-old was also on his Mac, using FaceBook and YouTube. He said he had been to GameStop with friends in the past but never bought anything. Both boys use their cell phones to play games in the car.

Continue reading Chasing Value: Are GameStop's Days Numbered?

Chasing Value: Are GameStop's Days Numbered? originally appeared on BloggingStocks on Wed, 29 Sep 2010 09:30:00 EST. Please see our terms for use of feeds.

Media companies are turning to the internet as a distribution avenue more and more as each month passes, whether it works or not. Sony (NYSE:SNE) will release "Angel of Death" online and hope that this somehow drives DVD sales.

The way the release will be done is clearly set up to alienate consumers and will only drive resentment. According to The Wall Street Journal, "The series will be released online eight minutes at a time, over 10 weeks." After that, the DVD of the program will come out. It will not appear in theaters or on TV.

Imagine how annoying it will be for potential viewers to have to go to websites over and over again before they can get the all of the "Angel of Death" content. Many people will simply abandon trying to collect all of the installments.

Sony will probably get plenty of hate mail.

Douglas A. McIntyre is an editor at 2 47wallst.com

Sony (SNE) to launch new show online, alienate customers originally appeared on BloggingStocks on Mon, 16 Jun 2008 10:05:00 EST. Please see our terms for use of feeds.

CNBC reports that the video game industry is making progress in its efforts to offer downloads of high-quality games over the internet. Nintendo has introduced WiiWare, which lets users download games for the Wii from independent publishers. Developers set the price -- far cheaper than the high-budget games put out by the big publishers -- and Nintendo takes a chunk of the revenue. CNBC adds that "Digital delivery of all forms of entertainment is widely considered to be a foregone conclusion. Only the timeframe is in question. Not only will publishers have to learn to adapt, but game retailers such as Gamestop (NASDAQ: GME) will have to figure out how to compete directly with companies that are also clients."

What happens if the downloading trend takes off as most experts assume it will? The story of Trans World Entertainment (NASDAQ: TWMC) could be a harbinger of things to come if Gamestop is unable to adapt. As the number-one operator of mall-based CD stores, Trans World has seen its sales and profitability plummet -- the shares have declined from over $13.00 in 2005 to the current price of $2.60. The market was very late in pricing in the disastrous effects that the MP3 would have on the brick-and-mortar industry.

Maybe Gamestop can adapt. But with a P/E ratio of over 30 for a company whose business model will have to change drastically over the course of the next decade, investors may want to keep in mind the collapse of Trans World Entertainment.

Is Gamestop the next Trans World Entertainment? originally appeared on BloggingStocks on Sun, 18 May 2008 16:10:00 EST. Please see our terms for use of feeds.

Sell stuff that isn't real online! originally appeared on BloggingStocks on Mon, 17 Dec 2007 06:57:00 EST. Please see our terms for use of feeds.

News Corp (NYSE: NWS)'s MySpace is getting into the online game business in the hopes of attracting and keeping more users. The largest social networking website will announce a deal with online game company Oberon, which provides games to a number of large web properties including Yahoo! (NASDAQ:YHOO).

According to The Wall Street Journal, "the companies plan to incorporate features into the MySpace games area that allow users to socialize by inviting friends to participate in multiplayer games and to chat while they are playing." This kind of online activity is much smaller than playing games on video consoles, but it is growing more quickly.

What appears to be happening here is that MySpace is beginning to turn itself into a portal not terribly different from Yahoo! or MSN. It already offers video and music services. It also has instant messaging and other communications features like a partnership with Skype.

The movement into the portal space is smart. The bear case on social networks is that it is hard to pin down the activities and demographics of their audiences, making marketing on the sites difficult. Offering services that provide magnets which draw MySpace users to one activity makes it easier for advertisers to push messages to those users based on their behavior.

Being a portal may not be the business that it used to be. But it still appears to be better than being a social network, at least from an advertiser's viewpoint.

Douglas A. McIntyre is an editor of 247wallst.com

MySpace gets games originally appeared on BloggingStocks on Tue, 23 Oct 2007 10:45:00 EST. Please see our terms for use of feeds.

Take-Two Interactive (NASDAQ: TTWO) is a creepy company in a lot of ways: extremely violent video games, scandals over hidden nudity, accounting and options investigations, and constant management turnover.

Now we can add another item to the list. Take-Two's All-Pro Football 2K8 features O.J. Simpson as one of 240 former NFL legends. A judge has ordered Simpson to hand over any money that he makes from the licensing deal to the Goldman family to satisfy the civil judgment they received in a wrongful death suit.

It's obvious that the judge did the right thing, although it seems unlikely that there was that much money involved. Simpson is hopefully not enough of a selling point to draw a huge amount of money for his likeness in a video game.

But why would Take-Two management want as putrid a person as O.J. in a game? Can a game featuring someone who was found liable for 2 deaths really be rated "E for Everyone"?

Take-Two has never had any problem with acting in poor taste, and that trend continues.

Take-Two Interactive (TTWO) makes video game with O.J. Simpson originally appeared on BloggingStocks on Wed, 08 Aug 2007 13:10:00 EST. Please see our terms for use of feeds.