Goldman Sachs analyst Robert Higginbotham has downgraded GameStop’s stock today and claimed that game sales have now peaked.
“We see GameStop shares as poised for a pullback as industry growth remains on a path toward deceleration from its current peak,” he said in a note. He maintained a $50 price target on the shares, which declined by 2.5% at midday to $55.21.
The rest of 2008 would be propped up but GTA and Wii Fit, Higginbotham said, but it wouldn’t be enough to stop the rot.
“While the much anticipated release of GTA IV at the end of April is expected to produce record sales, and Wii Fit, slated for May, is also expected to be a blockbuster, the remainder of the year lacks any big releases, and comparisons get tougher throughout the year as we lap titles such as Halo 3 and Guitar Hero 3,” he said.
Oh dear. Ah well: let the good times roll! For a bit.