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.
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