Gaming Model Shift Challenging GameStop

One of Oppenheimer analysts’ key takeaways from the Electronic Entertainment Expo (E3) revolved around a shift in the publisher business model, one they see as particularly challenging for GameStop Corp. (NYSE: GME).

In Oppenheimer’s view, game publishers are increasingly focusing less on releasing new titles and updated versions and more on monetizing existing games with add-on content and by extending compatibility of new systems with older games.

Called recurrent consumer spending, it mimics the gaming found often on smartphones with in-game purchases of level-ups, virtual currencies and more.

The saving grace for GameStop may be its 6 percent yield, making it attractive for income investors.

GameStop closed up 1.5 percent at $26.13.