Citi analyst Jason Bazinet forecasts strong sales for GTA VI upon its release in 2025.
He even expects the blockbuster title that’s been under development for 10 years to drive Take-Two Interactive Inc (NASDAQ: TTWO) stock price to $225 next year that translates to about a 20% upside from current levels.
But could it (GTA VI) prove to be a meaningful tailwind for the likes of GameStop Corp (NYSE: GME) as well?
GameStop could benefit from GTA VI collector’s edition
GameStop may not directly benefit even if GTA VI sees robust sales as Citi expects, since gaming enthusiasts are increasingly shifting to digital downloads.
Even for major releases, an increasing percentage of sales are digital rather than physical copies – a trend that challenges GME’s business model.
On the other hand, if Rockstar Games opted to release a special “collector’s edition” of the GTA VI exclusive to physical copies like it did with the GTA V, then perhaps the title may prove to be meaningful for GameStop as such editions typically have higher margins than standard game copies.
It’s worth mentioning, however, that Rockstar has been rather conservative in launching such editions of late.
For example, Red Dead Redemption 2 – their most recent major release did not have a collector’s edition.
In late September, Invezz forecast a possible rebound in GameStop stock.
What if Rockstar doesn’t release GTA VI collector’s edition
Even if Rockstar bails on releasing a collector’s edition of GTA VI – the release could still benefit GameStop stock as it’s been expanding in broader gaming merchandise, including collectibles, game-themed apparel and accessories, and gaming peripherals.
As the release of GTA VI drives fans to buy action figures, posters, clothes, and other collectibles – the top-line of gaming merchandise retailers like GME could lift significantly.
Note that the New York listed firm is fully committed to enhancing its digital capabilities as well.
It has relaunched an improved GameStop.com for a seamless shopping experience, and has started creating compelling content like informative articles, entertainment, and insights that cater to its target audience.
GME has introduced loyalty programmes to retain customers and drive sales as well.
These initiatives offer exclusive rewards, discounts, and personalised experiences to incentivize repeat purchases.
Is GameStop stock well-positioned for 2025?
GameStop’s loyalty programmes and expansion in e-commerce and broader gaming merchandise has already started to reflect positively on its financials.
The retailer turned a surprise profit in its recently concluded quarter that it ended with some $4.6 billion in cash, cash equivalents, and marketable securities.
Considering that things appear to be changing for the better for GME already, any boost, however small it may be, related to the release of GTA VI may be greatly welcomed by the investors in 2025.
GameStop also “does not anticipate any further at-the-market offerings involving sale of its common stock during the current fiscal year,” as per the company’s press release last night.
That’s contributing as well to the increase in GameStop’s stock price on Wednesday.
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