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The old technology is a long way from the existing technology. They are the same concepts. You go to new worlds; in which you are a hero or a villain… whichever suits you.
It’s not only children who turn to entertainment video games. The international economy is in a protracted recession. Household values, rising joblessness, stock portfolios… don’t let’s even go! It makes me want to lead all this bad news to a new world. But as commercial space flight is still a few years away, today I’m going to pick a video game.
I’m not the one video games you choose. There’s a video game play explosion – also known as “gaming” Although the economy is poor, last year’s sales in video games have increased 32 per cent.
There’s a whole generation of ‘gamers.’ Video games have grown up. You may be older but have not stopped shopping for video games. Why does this happen? Video games are entertaining days. Similar entertainment forms, such as movies, give about 2 hours to you.
Did You Know…..
Did you know that in recessions past video games, sales and incomes grew?
The crunch in consumer spending is already being seen at the heart of the retailers. This is bad news for people who sell new system games. In recent years, however, all three major video game makers have developed new systems – Nintendo Wii, X-Box 360 from Microsoft, and PlayStation from Sony.
In 41 per cent of American homes, there is a video game system.
Video games are fully integrated into the world’s cultures. They all try to find out where their entertainment buck gets the most out of it.
There’s a secret weapon in one video game dealer.
It keeps its customers returning. Their income has increased by almost 35%. It is not too bad given that the other industries have a 10 per cent increase in revenues.
Here’s your secret weapon… when you’ve done a video game loses all the importance for a “gamer.” They are ready to move forward. This dealer offers $5 in loans for the used game, seeing an opportunity.
The shop will then turn and sell the new version of the same game at a discount. Some used games that sold up to 50 dollars (now it’s a profit).
Used games are an enormous and increasing part of your business. Actually, they have the largest inventory in the industry of used games. Profits from these sales reach their lowest level.
Who’s the successful business? GameStop.
The world’s biggest video game dealer is GameStop (GME). They’re the largest by far, with over 5,557 shops in 17 countries (they have added an 18th country and 332 more shops with the biggest retailer in France).
They are driving 90% profit margins in used games with their secret weapon.
Buying The Cheapest Games @ Gamestop
The cheapest way to collect a Christmas chateau for gamers on your list is through used games. In a couple of blockbuster releases, Gamestop profits will explode… time for the holidays. I’d expect its inventory price.
This recession was weathered well by video game sales. Look at the stock price, however, and you’ll find it’s down 32%. All discretionary consumer stocks have unfairly lumped in this stock.
On November 20, Gamestop announced earnings for the 3rd quarter of 2008. Look for a quick recovery from its recent lows if they meet current estimates.
Gamestop should make a big rally at the end of that year and the beginning of ’09 if you can manage some short-term volatility. I can see this stock restoring 52 week to over 63 dollars over the longer term.
The co-editor of Dynamic Wealth Report is Corey Williams, a free investment newsletter that provides investment ideas and news that the mainstream investment journal can’t get. Brian and his team bring decades of experience with Wall Street and Silicon Valley to help you learn profitable trade ideas that you can use today.
***Good News*** For God so loved the world that He gave His one and only Son, that whoever believes in Him shall not perish but have eternal life. John 3:16. Find out who Jesus is at Jesus.bz.