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GameStop shares fell on PlayStation Now announcement

Shares in retailer GameStop fell 9 percent earlier this week as Sony detailed its new PlayStation Now game streaming/rental service at CES.

It would appear investors are cooling to GameStop as Sony offers customers a way to stream older PlayStation games to their PS4 and other devices. Customers will use PlayStation Now as a rental service either on a game by game basis, or through a subscription package.



The service is powered by Gaikai, which was acquired by Sony for $380 million in mid-2012.

PlayStation Now and similar services could affect GameStop's business if it reduces the number of customers shopping for games from previous generations. Of course, PlayStation Now and other streaming services still face limitations in the form of high-speed Internet availability for seamless gameplay.

Just under three years ago, GameStop acquired Spawn Labs' streaming service, which is being worked on by the retailers' R&D department.

Written by: James Delahunty @ 9 Jan 2014 9:11

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• 5 comments

• thebox

  This won't stop me from buying a physical copy of a game from GameStop.
  I actually have no use for online streaming/rental services.
  Plus, I don't have a PS4. Even if I did, I'd buy physical copies of the nostalgic games I want.
  

  ahhhhh!!! cobras

  9.1.2014 09:36 #1

• Bozobub

  Anyone who thinks game streaming is ready for prime-time has no real conception of the current state of broadband in the US or what data caps are, that simple.

  9.1.2014 11:16 #2

• sternrulez

  Originally posted by Bozobub: Anyone who thinks game streaming is ready for prime-time has no real conception of the current state of broadband in the US or what data caps are, that simple. Can't agree more strongly with this, Bozo. I'm fortunate enough to have Comcast, which currently has no bandwidth cap in my area, but my gf has a competing company with a pitiful cap. How anyone is capable of "cutting the cord" and streaming all of their televised content PLUS movies PLUS general PC and smartphone usage from their home network remains a great mystery to me.
  

  12.1.2014 10:51 #3

• Bozobub

  Actually Comcast DOES have a network-wide bandwidth cap of 250GB/mo. (for residential accounts), but they are very selective in enforcement. When I was living in WV, they didn't enforce it at all.
  
  Luckily, I moved to Hagerstown, MD, where the ISP (Antietam) simply has no cap, enforced or not. Both the installer and the rep I called to verify seemed surprised at the very concept o.O' .

  12.1.2014 15:06 #4

• sternrulez

  Oh, sorry... I should've been more specific. We USED to have a bandwidth cap of 250, but its been "temporarily disabled" since they did their big upgrade with the hybrid modem/routers :-)
  

  12.1.2014 16:30 #5