GameStop, Microsoft partnership sends games retailer’s shares up 44%

  • GameStop shares rose 44% on Thursday after it announced a multiyear partnership with Microsoft.
  • GameStop will begin selling an “Xbox All Access” bundle stores, with an Xbox console and two-year digital subscription at no upfront cost.
  • It will roll out the use of Microsoft Dynamics 365, Teams, and Surface devices in its stores and offices, it said.
  • GameStop will also upgrade its e-commerce site as part of the partnership.
  • Visit Business Insider’s homepage for more stories.

GameStop on Thursday announced a multiyear partnership with Microsoft to upgrade its stores and offer a new Xbox console package for no up-front cost — sending its shares rocketing by 44%.

As part of the partnership, the world’s biggest video games retailer said it would offer buyers an “Xbox All Access” bundle, for zero upfront cost, that includes an Xbox console and a two-year digital subscription to Xbox Game Pass Ultimate, Microsoft’s “Netflix of gaming” subscription service.

Microsoft did not name a specific Xbox console that would be part of the bundle in a statement, but said that it was “excited about continuing and evolving [the] relationship for the launch of the Xbox Series” consoles, due November 10. 

GameStop will also upgrade its e-commerce site as part of the agreement.

It will integrate Microsoft’s cloud software and hardware into its stores to create what it calls the “ultimate gaming destination” for gamers. GameStop has more than 5,000 stores in 10 countries. It didn’t say how many of these stores would be upgraded.

GameStop will use Dynamics 365, Microsoft’s suite of cloud-based business applications, to standardize its back-end and in-store operations including finance, inventory, e-commerce, retail, and point of sale. 

Staff would be able to access insights spanning both e-commerce and in-store sales data, Microsoft said. This includes customer purchasing history, real-time data on product

GameStop Stock Jumps on Multiyear Microsoft Partnership

GameStop  (GME) – Get Report said Thursday that it entered a multiyear strategic partnership agreement with Microsoft  (MSFT) – Get Report that the videogame retailer said would expand its product offerings and enhance its retail infrastructure.

Shares of the Grapevine, Texas, company were soaring nearly 20% to $11.19, while Microsoft was up slightly to $210.59.

Under the agreement, GameStop will standardize its back-end and in-store solutions on Dynamics 365, Microsoft’s portfolio of cloud-based business applications and customer data platform.

GameStop said this would enable store staff to access omnichannel insights about customer preferences and purchasing history, real-time information on product availability, subscriptions, pricing, and promotions.

Associates will be equipped with new Microsoft Surface devices, which will enable them to move freely within the stores.

GameStop said it planned to roll out Microsoft 365 and Microsoft Teams, the business communication platform, to its stores. With Teams, store associates will more easily be able to ask questions and share insights with one another.

GameStop has expanded its Xbox product offerings to include Xbox All Access, which provides an Xbox console and 24 months of Xbox Game Pass Ultimate to players with no up-front cost. 

GameStop operates more than 5,000 stores across 10 countries,. 

“This is an exciting day at GameStop,” Chief Executive George Sherman said in a statement, “as we announce the advancement of an important partnership that capitalizes on the power of our operating platform and significant market share in gaming to accelerate our digital transformation; drive incremental revenue streams; and over time, further monetize the digital world of gaming.” 

Last month, Ryan Cohen, GameStop’s biggest individual investor, reportedly said he believed the company could rival Amazon.com  (AMZN) – Get Report and was holding talks with management and several board members.

Get your Nintendo Switch right here — it’s in stock at GameStop

nintendo-switch-nyc-cnet-06.jpg

Sarah Tew/CNET

Ever since the pandemic hit, Nintendo has been struggling to keep up with Switch and Switch Lite demand. However, according to an early August GameSpot report, Switch console production is back in full swing — or close to it, at least. That jibes with what we’ve seen over that past few weeks, with the console popping up at online stores like Best Buy and Amazon at its regular $300 price tag.

Of course, it still sells out within minutes. But now that we’re seeing it in stock at stores on a fairly regular basis, we’re trying to keep closer track. We’ll update this story frequently, but you’ll want to click through below since the inventory status often changes on a minute-by-minute basis.

Amazon

Update: As of Oct. 4, there are no Nintendo Switch consoles available for online purchase for $300 at Amazon.    


Best Buy

Update: As of Oct. 4, there are no Nintendo Switch consoles available for online purchase for $300 at Best Buy.  


GameStop


Out of stock

What’s a good price for the Switch?

Unsurprisingly, there’s no “deal” to be had at the stores above; the price is set firmly at $299.99, which is the regular SRP. Indeed, it’s been quite a while since we’ve seen any kind of Switch discount. (Holidays, 2019, if memory serves.)

That said, with bundles and used consoles selling for upwards of $400 or more, paying “only” the suggested retail price is a win on this product. (And don’t worry: Nintendo has already confirmed that it has no plans for a Switch sequel this year.)

Read more: The best Nintendo Switch games for 2020

This post is updated regularly as inventory changes occur.


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