Home / Technology / GameStop shares slide 6% ahead of market after Netflix leases first video game signaling potential sector cleanup

GameStop shares slide 6% ahead of market after Netflix leases first video game signaling potential sector cleanup



GameStop Corp shares GME,
-2.68%
slipped about 6% in pre-market trading on Thursday, according to Netflix Inc. NFLX,
-1.35%
announced its first major video game rental, potentially signaling a move beyond the streaming video roots. The streaming giant hired Mike Verdu as vice president of game development, and poached him from Facebook Inc. FB,
-1

.44%,
where he was vice president of content for Reality Labs, he oversaw Oculus Studios, as well as the teams that brought second- and third-party virtual reality games and other apps to Oculus virtual reality headsets. Prior to that, Verdu was senior vice president of mobile for Electronic Arts Inc. EA,
-0.60%,
responsible for mobile game studios that ran franchises such as “The Sims”, “Plants vs. Zombies” and “Star Wars: Galaxy of Heroes.” “Putting this together, it’s obviously still early days, and much of the details remain to be clarified, but this feels like a significant event with major ramifications over the video game landscape,” Citigroup analyst Thomas A. Singlehurst wrote in a note. Singlehurst expects that the move will accelerate the move of video games to cloud-based platforms, “and that this could lead to a disruption in the form of a shift in the revenue generation model for the traditional PC / console side of the market.” Electronic Arts shares and Activision Blizzard ATVI,
-1.75%
the shares were slightly lower. Take-Two Interactive Software Inc. TTWO,
-2.44%
was down 0.2% and Sony snow
was down 0.4%. Zynga Inc. ZNGA,
-2.23%
was down 0.2%. Netflix shares jumped 2.4% and are up 1.3% during Wednesday, while the S&P 500 SPX,
-0.58%
has received 16%.


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