"GameStop and Microsoft will both benefit from the customer acquisition and lifetime revenue value of each gamer brought into the Xbox ecosystem."
What that line means (and does not mean) has been a point of contention not just in gaming circles but also among financial analysts. Now, one analyst says that Microsoft and GameStop intend to share downstream revenue of Xboxes sold at GameStop.
What does that mean? What could it mean for GameStop and for Microsoft's competitors? For Nintendo, Sony, the PlayStation, and the Switch? And just how seriously should we take his statement?
Turns out Microsoft may also be powering GameStop's dreams...in Virtual Legality.
#Gamestop #Microsoft #Xbox
Discussed in this episode:
"Microsoft's "Big" Moves: On GameStop, Epic, and App Fairness (VL335)"
YouTube Video - October 9, 2020 - Hoeg Law
"GameStop Announces Multi-year Strategic Partnership with Microsoft"
Press Release - October 8, 2020
"Today $GME confirmed with [DOMO CAPITAL] that the agreement with $MSFT includes revenue sharing on all downstream revenue"
Tweet - October 13, 2020 - DOMO Capital Management, LLC (@DOMOCAPITAL)
"GameStop Revenue Sharing Agreement With Microsoft Shifts Sentiment"
Seeking Alpha - October 12, 2020 - Justin Dopierala
"GameStop's (GME) Microsoft Deal Unlikely to Drive 'Meaningful' Upside - Wedbush"
Street Insider - October 9, 2020
"Sony Won't Follow Game Pass Model on PS5, Doesn't Believe It's Sustainable"
PushSquare - September 17, 2020 - Sammy Barker
"PS5 beats Xbox Series X by huge margin, says new survey"
Toms Guide - August 3, 2020 - Marshall Honorof
"Virtual Legality" is a continuing series discussing the law, video games, software, and everything digital, hosted by Richard Hoeg, of the Hoeg Law Business Law Firm (Hoeg Law).
CHECK OUT THE REST OF VIRTUAL LEGALITY HERE:
DISCUSSION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TO BE CONSTRUED AS LEGAL ADVICE. INDIVIDUALS INTERESTED IN THE LEGAL TOPICS DISCUSSED IN THIS VIDEO SHOULD CONSULT WITH THEIR OWN COUNSEL.
Joe Ellis (Logo Design)
Chris Leroux (Motion Graphics)
For more information: contact Chris at @Chrisleroux on Twitter.
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The Hoeg Law Firm is a business law firm with big law experience and a small firm approach focusing on start-ups, technology, financing, and everything else a business might need.