Shares of long-suffering electronics retailer GameStop Corp.
The agreement with Microsoft is set to revamp GameStop's retail infrastructure heavily, according to the company's press release. According to GameStop, retail operations will be consolidated into several of Microsoft's enterprise products, including Dynamics 365, Microsoft Teams, and Microsoft 365. The company will also issue Microsoft Surface devices to employees to help with retail operations.
While the streamlining of retail operations is undoubtedly attractive for investors, the company's new product offering is likely to be just as, if not more attractive to GameStop's customers. GameStop announced that it would be selling the "Xbox All Access" bundle as part of the partnership; the bundle will include an Xbox console as well as a two-year subscription to Xbox Game Pass Ultimate with no upfront cost.
"This is an exciting day at GameStop 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. Since joining the company last April, we have been on a mission to evolve our strategy to take advantage of our undisputed leadership position in gaming." GameStop CEO George Sherman said.
Microsoft also appeared to be enthusiastic about the partnership. According to Microsoft's Vice President of Gaming Phil Spencer, "For many years GameStop has been a strong go-to-market partner for our gaming products, and we are excited about continuing and evolving that relationship for the launch of the Xbox Series X|S. GameStop's extensive store base, focus on digital transformation in an omni-channel environment and expert gamer associates remain an important part of our gaming ecosystem, and we're pleased to elevate our partnership."
Investors appeared to be ecstatic about the prospect, giving GameStop a single-day rally that saw shares leap 39%, from the opening price of $9.47 to the day end price of $13.16. Shares continued to climb into the next day, reaching $14.36, a share price not seen by GameStop since last year. However, the rally appeared to end in the afternoon as shares began a downward trajectory, ending trading for the week at $12.03.