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GameStop "missed an opportunity", says Pachter

Wedbush Morgan analyst Michael Pachter has stated he believes US retailer GameStop should have stepped in before GAME to buy high street chain Gamestation.

Wedbush Morgan analyst Michael Pachter has stated he believes US retailer GameStop should have stepped in before GAME to buy high street chain Gamestation.

As confirmed this morning, Game Group has purchased Gamestation in a deal worth GBP 74 million.

Prior to the announcement, there had been speculation that GameStop would put in a bid for the company as part of plans to expand into Europe - which Pachter believes would have been a beneficial move.

"I think GameStop missed an opportunity," he told GamesIndustry.biz.

"They should be in the UK market, and instead of purchasing Gamestation and immediately being one-third the size of Game Group, they allowed Game Group to get bigger.

"If GameStop were to open 200 stores now, they would be a quarter the size of GAME. They could have been two-thirds the size of GAME by buying these stores and opening 200 more."

As news of the acquisition began to sink in, sources at some publishers were this morning expressing concern about GAME's expanded market share - and the extra leverage the retailer may gain as a result.

But according to Pachter, "There should be no impact on publishers at all. Game Group is a good partner, and has nowhere near enough UK market share to exert pressure on publishers.

"If GAME tries to squeeze the publishers, the publishers will sign exclusives with Wal-Mart or Dixon's on games like FIFA or GTA, and GAME will suffer mightily. They will NOT sign exclusives if GAME treats them well.

"GAME's leverage is with hardcore consumers, and if they don't have hardcore games to sell, the consumers will find them at Dixon's," Pachter continued - observing that the specialist has "no leverage" with mass market titles such as Spider-Man and Harry Potter.

"If enough publishers shift supply away from them, GAME will learn to play ball in a hurry," he concluded.

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Ellie Gibson

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Ellie spent nearly a decade working at Eurogamer, specialising in hard-hitting executive interviews and nob jokes. These days she does a comedy show and podcast. She pops back now and again to write the odd article and steal our biscuits.