Berk Sure Has A Way

Putting my mouth where my money is.

Posts Tagged ‘GME

GameStop Tanked: Winners and Losers

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My latest post on Seeking Alpha is commentary on the current state of the video games business after seeing the carnage in GME’s stock when they issued earnings this week.


GameStop is struggling with the transition to new consoles, new digital distribution and new sales competition from Amazon and others. They may have some solid years as sales of next generation consoles ramp but I expect digital to be the greatest long term existential threat. Nintendo is at risk of becoming irrelevant in the console business. Video Game publishers should perform very well as the next generation ramps up, but may have some sales challenges in the meantime.

Read the whole thing:  GameStop Tanks


Written by Kevin Berk

January 16, 2014 at 7:07 PM

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Take-Two’s Q4 should be a Monster $800 MilIion in Revenue

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A couple of weeks ago, I outlined why I thought Take-Two (TTWO) is very a different company than a few years ago with significantly brighter prospects. The console video games business is all about cycles–product cycles, console cycles, consumer shopping cycles. Right now we are in the lollapalooza of video game cycles for TTWO – a new version of biggest hit coupled with next gen consoles during the critical Christmas shopping season. So how is it going so far for Take-Two?

By my estimates, spectacularly.  In its earnings release in late October, revenue was projected to be $650 million – $700 million by TTWO, which has been low-balling estimates recently. Analysts are coming in at an average slightly above $700 mil (range: $668-$766 mil). I estimate revenue will be about $800 million and earnings will meaningful beat the current $1.06 per share projected by analysts.

You can read the full post at Seeking Alpha:

TTWO’s Q4 will be another Monster


Written by Kevin Berk

December 24, 2013 at 3:06 PM

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