News
Analyst: GameStop made error in not buying Gamestation
Christopher Dring Mar 19 2008, 1:50pm
Comments (6)
Giant US retailer missed a huge opportunity by letting GAME buy Gamestation, says Pachter
Wedbush Morgan analyst Michael Pachter believes GameStop made a big mistake by not buying Gamestation, according to videogaming247.
GameStop was expected to come in for the ex-Blockbuster owned chain, before GAME made a bid, and Pachter feels this has slowed GameStop’s move into Europe.
“GameStop always had the capacity to make inroads in Europe, but for some reason, expansion there has been painfully slow,” he told videogaming247.
“I think they made a strategic error in not buying Gamestation, allowing GAME to get even bigger and placing them at a competitive disadvantage in the UK. The rest of Europe is wide open (Micromania is strong in France), and I expect GameStop to do well on the Continent.”
GameStop earlier reported sales and net earnings rose 33 per cent and 82 per cent respectively, spurring on an ambitious target to open up to 600 new stores by the end of the year.
Comments
“You snooze, you lose.”
Posted by: Steve O'Brien. - Mar 19, 10:15pm
It just proves that Lisa Morgan has a bigger pair of balls than her american counterparts.
The dynamics of American games retail doesn't translate to UK shores, theirs a reason why the UK is the 3rd biggest territory in the world and that's agression. Having perused Gamestop and Electroics Boutique stores they appear to be too lethargic to make an impact on the UK specialist chain, even more so now so with the strength in numbers.
Kevin Neary's little outfit with the big name is only indicative that the US giant is a big old dog with more woof than bite against the dogs of war of British retail.
koti (c)
“SPELLING!”
Posted by: Steve O'Brien - Mar 19, 10:17pm
How embarrasing that I typed 'theirs' rather than 'there's'
That's what a bottle of wine does, let that be a lesson to you.
“Re: SPELLING!”
Posted: Mar 20, 8:40am
And today's "No **** sherlock" award goes to.....
“Re: SPELLING!”
Posted by: stevo - Mar 20, 9:02am
gamestop did offer but it was not the cash offer blockies wanted and did not leave blocks with the 60 stores that were in blocks stores.
game paid a stupid amount of cash for a company which without those 60 stores (which make 4 mill) made roughly 3 million profit last year.i understand why they did it was a blocking move and blockbustger usa had to sell after their stupid no late fees fiasco.
“You snooze, you lose”
Posted: Mar 21, 1:39pm
The press release was already written for the GameStop/gamestation buyout, but at the 11th hour it got pulled because GameStop tried to dictate that gamestation couldn't sell the remaining outlets to GAME, to which gamestation wanted to. Only then did GAME come in for the lot, and for STUPID money I might add.
GameStop will just buy GAME when the time is right. Money is no object to them, they’re the biggest in the world; People seem to be forgetting that.
“Re: You snooze, you lose”
Posted: Mar 27, 2:04pm
i think you runderestimating GAME stores, they have quite a big pocket and if they use Gamestation right that pocket will get even deeper