As video games spending transit from physical to digital, more and more videogame shops are closing around the world. The likes of GameStop, EB Games and Game not only face the competence of online distribution, but also from online shops that do not have to pay for the rent of a fancy store in a mall or at street level.
On the opposite side, platform owners are profiting more than ever from a model that reduce publishing costs and increase their revenue share. It's in their hands to flip the coin, and Microsoft just showed the way.
Microsoft and GameStop closed a historic deal that let the retailer participate in the digital market from every Xbox console sold at GameStop stores. This is part of a multi year deal agreement by both companies signed a few days ago, but it wasn't until Wednesday when people realised the implications.
Domo Capital Management, a small stockowner of GameStop, put some light about it in a tweet:
Today $GME confirmed with @DOMOCAPITAL that the agreement with $MSFT includes revenue sharing on all downstream revenue (i.e. digital downloads and digital content) from any device that GameStop brings into the @Xbox ecosystem. GameStop now meaningfully participates in digital.
What percentage of revenue shares get the retail chain? Will it be enough to turn around the future of dedicated retailers? Will more agreements like that follow? There are no more answers, as neither GameStop or Microsoft are willing to explain the details of the deal to Ars Technica. But a new door has been opened.
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