GameStop shares plummet after Sony announces PlayStation Now

Investors not enthusiastic about Sony's new plan to allow users to rent PlayStation 3 games.

GameStop shares plummeted today more than 9 percent immediately after Sony announced its new PlayStation Now service, through which users can rent various older generation PlayStation games.

PlayStation Now would theoretically pose a threat to GameStop's business. Because PlayStation owners will be able to rent back-catalog games, they might not be as likely to shop at GameStop for past-generation games.

We've reached out to a GameStop representative for comment, but have not heard back. You can see in this chart that GameStop shares began to fall right after Sony's announcement.

PlayStation Now runs on technology from Gaikai, the streaming service provider Sony purchased in 2012 for $380 million. A beta for the service will launch at the end of the month before a public rollout in the US this summer. You'll be able to rent games on a title-by-title basis or as part of a wider subscription package.

It is possible that Sony will somehow cut GameStop into its revenue plan for PlayStation Now, but that remains to be seen.

Rental company GameFly could also take a hit from the kind of direct-to-user rental service that PlayStation Now will afford. We've also reached out to that company for comment.

Written By

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.

Discussion

470 comments
blackace
blackace

Didn't Gamestop say they wanted to help sell Playstation Now subscriptions through their store? Why would their stocks fall from that?

JoInfo
JoInfo

Hey guys! Let's all hope stores like Gamestop go out of business so that our only option is Walmart, where we'll pay full price for everything AND have limited selection too! Brilliant idea!!!

Daian
Daian

Good, greedy bastards, those suits at Gamestop.

gcodegamer
gcodegamer

I love it when a plan comes together.

omar_q
omar_q

I can't help but feel GameStop eventually suffering the same fate as Blockbuster sooner or later. 

Cory Allen Poole
Cory Allen Poole

Still rather own a physical copy but I just buy my games from a locally own store than GameStop or amazon depending on the availability of the game

Luis Gil
Luis Gil

Better step up your game gamefraud ...

PlatinumPaladin
PlatinumPaladin

Owning physical copy > Streamed rental


But of course Sony wants every penny for themselves.

Frederick Quatman
Frederick Quatman

They shouldn't worry, if the Xbox One fiasco taught me anything it's that people want to physically own their games, and don't want to rely on the internet to play them. OnLive failed and this will be niche at best. Surprised at how many people are applauding something that if successful would ruin console gaming forever.

goldenagegamer
goldenagegamer

Soon in the Near the future there will be massive acquisitions from the big Three to Secure the "Digital Rights" to all old games up to current ones.  Companies that are in trouble like Capcom should in theory be bought by Sony>  Imagine that you could only Play Old Capcom games on  One system.   It could sway customers to your side.  Digital is the future, but there will be people like me that still hold onto the physical medium.  Im older and a lot gamers from my generation still want physical releases, but the younger generation is the target audience and will have to qualms about being Digital Only.  This is just my opinion

Aaron Ebbert
Aaron Ebbert

yeah i know gamespot are morons and thought itd be too hard to find a picture that worked.

Jake Albert
Jake Albert

I only go to Cheapstop when I have a giftcard but its not rocket science to figure out why they rip people off. They are going to try and make as much profit as possible. If you want that Ebay value, sell it on Ebay. They wouldnt make any money if they actually gave what the item is worth! You also dont have to accept their crappy offer, they arent forcing you to trade it in. Take your business elsewhere.

Jake Albert
Jake Albert

I dont know why people trade in anywhere! I do better on Ebay even after all the stupid ass fees and shipping!

meatz666
meatz666

Modern times. Companies get redundant... Just like Blockbuster...

IndremaLover
IndremaLover

 Should this surprise anyone?  In just a few years we'll all laugh at how in the olden days we used to drive to a brick-and-mortar building to buy our software.

Gamestop is following Blockbuster Video into the history books.

Josh Beebe
Josh Beebe

This won't hurt Gamestop too much. There are parts of the country where people don't have fast enough internet to take advantage of playstation now. That and Nintendo and Microsoft games. Gamestop will be fine.

obsequies
obsequies

shows that the majority of their investors know nothing about gaming

Bryce Bogin
Bryce Bogin

Has anybody else relized the pic is all of used xbox games+

Rusmurf
Rusmurf

I still want physical copies, and have my old systems. I see this as more of competitor to people that just use rental services.

Chris Wyble
Chris Wyble

Good. Replays is better and has a better business plan.

afigueroa_pr
afigueroa_pr

"We've reached out to a GameStop representative for comment":

"Oh, sh!t!!"

Daniel Stanford
Daniel Stanford

Why's everyone hate GameStop so much? I'd much rather buy a game there than target or Walmart. If you don't like em, don't go there. How are they scamming people? If you don't like what they offer go somewhere else.

William Ellis
William Ellis

It is about time gamestop got a taste of it's own medicine!!!!! :)

Bread_or_Decide
Bread_or_Decide

Not sure how this hurts gamestops. I can't remember the last time I saw them selling Playstation 1 games. 

Matt Davis
Matt Davis

you can get more money by selling on ebay fools

swimbearuk
swimbearuk

I can't believe all the hate for Gamestop. I'm not American, but when I've visited, it was always worth calling in to see if it was the cheapest option.


When it's no longer possible to buy physical copies of games, you will find out exactly how much Nintendo, MS and Sony want to charge you for their games. You will also find out that you won't get games that are a couple of months old selling for half the price; you only have to look at each online marketplace to see that is true.


Currently MS and Nintendo are just ripping us off with their digital downloads. Sony only does a little better because of free titles with playstation+.


If you want cheap gaming, get a boomerang subscription (UK) or whatever the US equivalent is, and pay about £10-£15/month for every major release.

Jeff Shoup
Jeff Shoup

Half of that wall is PS games you retarded blind ass fucker. Look before you open your lame pie hole!

wallacom
wallacom

And I was thinking "What GameSpot have to do with streaming games". Very tired, much sleep, wow.

blackace
blackace

You're the only one who owns a Gaybox? Never heard of it, so you must have created it yourself.

blackace
blackace

Hello EBay. Woohooooo!!!

YukoAsho
YukoAsho

People are fools, straight up.  It amazes me, however, that investors are buying the hype.  I think the largest issue is the idea that EVERYONE will dump one in favor of the other, when that's proven not to be the case.  Hundreds of millions of CDs, DVDs and Blu-Rays are sold yearly in the age of Netflix and internet radio, and those technologies are proven AND don't have to worry about latency on the user end.

This is of course a niche.  People aren't buying 1080p televisions exclusively to play 720p streams with image artifacting all over the place, and GameStop will continue to do well.  I'm sure even SONY knows this will be a niche, which is FINE.  There's room for multiple business models in this market, there's no one ring to rule them all.

PlatinumPaladin
PlatinumPaladin

@goldenagegamer  I think it'll be a long time before publishers start buying other publishers, but I also share your appreciation of the physical medium. The advantages far outweigh those of digital in my book.

IndremaLover
IndremaLover

True - but are those remote areas enough to support physical storefronts?  Surely they will close stores in areas that do have sufficient internet.  When they go from around 6k stores to just a few hundred, can they still be profitable?  I don't see how.

YukoAsho
YukoAsho

@obsequies Seriously.  If anything, this is the time to buy some Gamestop stock, now that so many idiots are fleeing and lowering the price.

goldenagegamer
goldenagegamer

Just because you have  great experiences with Gamestop does not mean the majority of people do.

Most people do go somewhere else, but they still have the RIGHT to express their opinion no matter how much you disagree with them. Its called freedom of Speech


MXVIII
MXVIII

Why do you think people who dont like gamestop shop there? They dont. Gamestop doesnt scam people, they just price gouge them. You can return 40 titles and get like 7 dollars, and then they turn around and sell those games for 15, 20, even 40 dollars a piece. Its no a scam per se, just a bad deal for the consumer. So thats why people dont like gamestop and dont shop there. 

goldenagegamer
goldenagegamer

@Bread_or_Decide 

The More time someone is playing a Ps1 title or PS2 title means that they are NOT in Gamestop buying used PS3 or PS4 games


obsequies
obsequies

@YukoAsho @obsequies yeah I think  hardcore gamers make excellent investors. Not many hobbies that pull people in as much and deal with as much money. Can kinda wade through people who don't know what they are doing.