Analyst: GameStop not yet threatened by digital distribution

Despite fears that the on-going trend of digital distribution may be bad for retailers, analyst Arvind Bhatia of Sterne Agee believes that retailers and walk-in stores have nothing to worry about. At least not yet. Meeting with four key GameStop execs, the analyst shares his thoughts and predictions regarding digital downloads.

Despite fears that the on-going trend of digital distribution may be bad for retailers, analyst Arvind Bhatia of Sterne Agee believes that retailers and walk-in stores have nothing to worry about. At least not yet. Meeting with four key GameStop execs, the analyst shares his thoughts and predictions regarding digital downloads.

According to GameStop, they’ve “conducted the most thorough study to date” on the subject, and that the don’t see an “addressable market” for digital downloads until 2014. GameStop management also expects only 25% of the market, even by 2014, will have access to digital downloading means, adding that it could also cost them about US$ 100 a month.

Although Bhatia did not specify what those costs would be, it’s likely that he was referring to broadband internet service, subscriptions, and other miscellaneous expenses.

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Via Gamasutra