- GameStop's e-commerce platform does not fully and directly participate in the industry's rapid adoption of digital downloads and the accelerating transition to robust, ongoing live services for most game titles.
- Cohen's succinct "bump" analogy concerning the current console cycle illustrates the importance of quickly solving GameStop's growing digital problem.
- The main factor driving GameStop's unexpected underperformance at the launch of the previous cycle was low prior-gen software sales.
- In 2014, GameStop estimated 5% of AAA software units were distributed via paid digital download and that the company was capturing ~42% of the DLC market.
- Look for $2.5 billion in revenues for the nine-week holiday period as the bar to validate GameStop's bullish proponents' console-focused thesis.
For further details see:
GameStop: Cohen Right To Downplay PS5/Xbox Series, But Mistakes Core Digital Problem