Should I buy Gamestop GME before Playstation 5 and Xbox Series X gets released?
Sony Playstation 5 and Microsoft Xbox Series X at the end of 2020. Gamestop $GME has historically gone up months leading up to the release, but let’s think about this.
Bull Case for GME
GME has a nice run every new console launch
The Playstation 4 PS4 and Playstation 3 PS3 release dates
- Sony Playstation 3 was released on November 11th, 2006 (Saturday)
- Sony Playstation 4 was released on November 15th, 2013 (Friday)
- Sony Playstation 5 is planned to be on Holiday 2020.
If history repeats itself, right now should be a good time to buy GME stocks to sell at release.
Bear Case for GME
Who shops at Gamestop anymore?
Convenience – Gamestop is looking a lot like Blockbuster. Who shops at Gamestop anymore? People are now downloading games online or picking them along with other necessary items at Best Buy or Target. Sales are usually better over at the bigger retailers too.
Trade-ins – If people have bought the physical copy, Amazon does trade-ins now too.
Price – As stated previously, buyers usually have no loyalty to where to buy from. Do a simple Google search on a game title and they are presented with where the cheapest retailer is and Gamestop is almost never on the top.
Knowledgeable employees – Like Blockbuster or a small bookstores, there was a time, it was helpful to have someone passionate recommending you a book or a movie. Now people can do a Youtube search or go through the infinite amount of reviews online before committing to a game purchase. This is far more valuable than the one employee’s recommendation.
What advantage does Gamestop have?
