The business model of GameStop (game retailer website) depends almost entirely on its ability to sell video game software. In the first quarter, more than half of GameStop's revenue and about two-thirds of its profits came from its sales of video game software, including new software and used software.
As the digital distribution of video games continues to grow, for GameStop, its business model is going through severe tests. Sony continues to promote digital distribution through a series of measures. The company recently updated its PlayStation4 game console, which promoted the purchasing power of digital games, which further challenged GameStop's business model.
PlayStation 4 gets preloaded
In essence, gamers are an impatient team. For large-scale games, most of the sales were generated shortly after its launch. Taking the 2013 Grand Theft Auto 5 as an example, it generated $1 billion in sales in the first three days after launch.
However, digital distribution also has its advantages, which has given retailers such as GameStop an advantage. Each game released to Sony PlayStation 4 can be digitized, but if the speed is too slow, the player must wait a few hours to download the game, so if the player wants to play the latest game in the first time, then The local GameStop is much faster.
But the recent release of the PlayStation 4 patch has increased the level of the competitive environment. Today, players will be able to preload their games. They will be able to download digital copies of new games in advance, starting at midnight on the day of the game’s release and when the bells are midnight. Starting on the date of release, a digital copy of the game will be unlocked and the player can immediately play the game.
Sony's efforts in digital distribution will go beyond preloading
Prior to the release of the PlayStation 4 patch, GameStop's share price faced significant sales pressure and feared that the upcoming Xbox One could not carry CD-ROM drives. The end result turned out not to be the case, and the digital restrictions on the Xbox One were later deleted. However, compared to the Xbox One, Sony PlayStation4 poses a greater threat to GameStop.
In addition to preloading, Sony added many new features to PlayStation4 to encourage players to digitally purchase their games. Take Remote Streaming as an example: Players who also own Sony PlayStation Vita can play PlayStation 4 games remotely. As long as they have a stable Internet connection, they can play games in any room in the house and they can also play games on the road. CD-based games can also implement the above functions, as long as these games are on the PlayStation 4, but they cannot be exchanged remotely, so any player who wants to use this function will be encouraged to purchase digitally.
GameStop's PlayStation Plus sales are soaring
PlayStation Plus is Sony's subscription service, which is basically mandatory for PlayStation4 users. Strictly speaking, PlayStation Plus is optional, but in order to take advantage of online multiplayer players - this is a key part of most popular games today, PlayStation 4 users require a PlayStation Plus subscription. PlayStation Plus can be purchased directly through Sony, but players can also purchase the service by purchasing a card from GameStop.
Not surprisingly, the sales of PlayStation Plus continues to grow. In the first fiscal quarter earnings conference call, GameStop management stated: "Since the introduction of the PS4, we have completed sales of the PlayStation that are 3.4 times more than PlayStation Plus." This is a good thing for GameStop, right? ? not completely.
GameStop has received support from many bullish analysts. Recently, Bank of America Merrill Lynch analysts upgraded GameStop to buy, believing that the maturity of the current game console cycle will benefit GameStop's future profitability. In recent years, it has been a reliable trend for GameStop. The new game console has promoted an upgrade and purchase cycle, benefiting GameStop's profitability.
But investors need to understand that this time is different, and this is very important. Sony continues to increase the functionality of PlayStation 4 and make its digital distribution more attractive. With PlayStation4 already selling 7 million units worldwide and becoming the most popular next-generation parlor game in the process, GameStop’s core business model is under attack. With the active promotion of digital distribution, this generation may be the last generation of GameStop.
TECHNOLOGY
WHAT IS AN Air Purifier?
Breathing clean air is very important.
It is scientifically proven that the air in our homes contains allergens(pollen ,mites ,moulds ,etc ).
noxious substance, bacteria viruses and suspended smells.
We have the solution for it!
Silent mode for peaceful sleep
Removes Allergens & Germs
Like pollen , dust , dander , smoke , pollution , viruses , bacteria and mold spores
UVC lamp ----using UV lamp to kill viruses
Air Cleaner For Kid,Smart Air Cleaner Hepa,Mini Air Purifier,Baby Air Cleaner
Ningbo Zhe Kai Electric Appliance Co.,Ltd , https://www.cnairpurifiers.com