You guys and gals remember when a trip to Blockbuster on a Friday evening was a must? You know, before Netflix came along? GameStop will see the same fate, as more powerhouses like Microsoft hit the market with their subscription gaming services. The question is: will GameStop use it’s US$1.3 billion in cash reserves to evolve away from brick-and-mortar retail? The company’s main revenue stream is used game titles and it directly benefits when new consoles hit the market. Aside from it being a meme-stock, wherein a lot of retail traders are sticking it to the institutional shorts, fundamentally the company needs a clear innovation strategy if it expects to survive.
