GameStop Thinks Rental Subscriptions Will Pay Off
GameStop (NYSE: GME) recently introduced a subscription-based video game rental service called Power Pass. The service lets gamers borrow as many pre-owned physical games as they want from its stores, one at a time, for six months for a $60 fee. As an added bonus, customers can keep one free game after the subscription period ends. Sign-ups will start in early November.
PowerPass sounds like a good deal for gamers, who regularly pay $60 for a single game. It could also boost traffic at GameStop's stores while providing the retailer with a new stream of revenue. But will it move the needle for GameStop, which shed more than 25% of its market value over the past year? Or will it fail to overtake similar digital subscription offerings from leading video game publishers like Electronic Arts (NASDAQ: EA) and Sony (NYSE: SNE)?
Image source: Getty Images.
Source: Fool.com
Gamestop Corp. Stock
Currently there is a rather negative sentiment for Gamestop Corp. with 5 Buy predictions and 11 Sell predictions..
The target price of 5 € compared with the current price of 22.24 € for the stock indicates a negative potential of -77.51%.
