GameStop Slips to Lowest in 14 Years as Google Threatens Console
(Bloomberg) -- GameStop Corp. fell 5.1 percent to $10.40 a share Wednesday, the lowest intraday since April 2005, as GameStop heads toward its second day of declines.
The selloff comes one day after Alphabet Inc.’s Google unveiled plans to debut a streaming service for video games later this year.
Oppenheimer analyst Andrew Uerkwitz said in a note to clients the announcement is one of those "times we’ll look back at and call a turning point." GameStop has fallen 25 percent since it last reported earnings and a shift towards hardware in late November.
"A move away from traditional console-centric gaming toward a cloud-based solution will take many years," the analyst wrote. He believes the console and personal computer "will remain relevant for a long time," but it won’t be because the streaming
experience is a bad one.
Video game publishers including Electronic Arts Inc., Activision Blizzard Inc. and Take-Two Interactive Software Inc. are also noticeably weak during intraday trading.
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