Adds details from release, analyst comment, background
Oct 8 (Reuters) – GameStop Corp GME.N and Microsoft Corp MSFT.O signed a multi-year deal that would allow the videogame retailer to upgrade its stores with the software maker’s cloud and hardware services, sending GameStop shares 44% higher on Thursday.
GameStop, which already sells Microsoft’s flagship Xbox gaming console, said it would now offer a two-year digital subscription package with the consoles to players at no upfront cost.
Several analysts are expecting the November launches of the XBox Series X and rival Sony’s PlayStation 5 to boost sales for GameStop, which has been reeling under losses driven by coronavirus-led disruptions and delayed console purchases ahead of the new cycle.
Brokerage Jefferies said the agreement provides GameStop access to revenue created at the gamer level, instead of solely on the piece of content sold.
GameStop, which did not disclose the financial