Fri, Jan 04, 2013 | 00:37 GMT
GameStop share dive linked to Sony anti-used game patent
GameSteop’s share price fell by 5% during Thursday trading, which industry analyst Michael Pachter attributes to rumours of plans to implement an anti-used game system in the PlayStation 4.
In a note to investors, as reported by Kotaku, Pachter warned against dumping GameStop stock, saying there’s little chance such a system will be implemented.
“The news has negatively impacted GameStop shares, and we think the reaction is overblown,” he said, adding “Sony benefits little from a unilateral decision to block games. Sony’s sales would rise only marginally if the PS4 blocked used games.
“Sony would be materially hurt if its console blocked used games and competitor consoles from Microsoft and Nintendo did not.”
Pachter said Sony’s patent may offer individual publisher the opportunity to implement an anti-used game system at their own discretion rather than a system-wide ban.
Pachter was among a number of analysts who pooh-poohed the rumours and advised investors to remain faithful to GameStop. GameStop’s shares may also have been seen as less desirable following analyst comments that it had not sold as many Wii Us as expected.
GameStop is one of the most successful purveyors of the trade-in model.