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Society & Culture
Virtual Legality Episode 339

GameStop WILL Share Xbox Digital Revenue...Apparently

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9m Oct 14, 2020
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"GameStop and Microsoft will both benefit from the customer acquisition and lifetime revenue value of each gamer brought into the Xbox ecosystem."

  • Press Release; October 8, 2020

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
https://youtu.be/xzxj39C2FK0

"GameStop Announces Multi-year Strategic Partnership with Microsoft"
Press Release - October 8, 2020
http://news.gamestop.com/news-releases/news-release-details/gamestop-announces-multi-year-strategic-partnership-microsoft

"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)
https://twitter.com/DOMOCAPITAL/status/1316173476777136128

"GameStop Revenue Sharing Agreement With Microsoft Shifts Sentiment"
Seeking Alpha - October 12, 2020 - Justin Dopierala
https://seekingalpha.com/article/4378623-gamestop-revenue-sharing-agreement-microsoft-shifts-sentiment

"GameStop's (GME) Microsoft Deal Unlikely to Drive 'Meaningful' Upside - Wedbush"
Street Insider - October 9, 2020
https://www.streetinsider.com/Analyst+Comments/GameStops+(GME)+Microsoft+Deal+Unlikely+to+Drive+Meaningful+Upside+-+Wedbush/17454679.html

"Sony Won't Follow Game Pass Model on PS5, Doesn't Believe It's Sustainable"
PushSquare - September 17, 2020 - Sammy Barker
https://www.pushsquare.com/news/2020/09/sony_wont_follow_game_pass_model_on_ps5_doesnt_believe_its_sustainable

"PS5 beats Xbox Series X by huge margin, says new survey"
Toms Guide - August 3, 2020 - Marshall Honorof
https://www.tomsguide.com/news/gamers-prefer-ps5-xbox-series-x-survey


"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:
https://www.youtube.com/playlist?list=PL1zDCgJzZUy9YAU61GoW-00K0TJOGnPCo

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.


Blog: hoeglaw.wordpress.com
STORE: https://teespring.com/stores/hoeg-law-store


DESIGN WORK
Joe Ellis (Logo Design)
Chris Leroux (Motion Graphics)
For more information: contact Chris at @Chrisleroux on Twitter.

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About Hoeg Law

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.


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