GameStop Announces Collaboration with PSA

Rhea-AI Summary

GameStop Corp. (NYSE: GME) has announced a collaboration with Collectors, through its Professional Sports Authenticator (PSA) division. As part of this partnership, GameStop will become an authorized PSA dealer, offering authentication and grading services for trading cards at select GameStop stores across the United States.

PSA is recognized as the world's largest and most trusted provider of trading card and autograph authentication and grading services. This collaboration aims to expand GameStop's offerings in the collectibles market and provide customers with access to professional grading services.

Customers can visit the GameStop website for a store locator and details on the GameStop/PSA submission process. For more information about PSA's authentication and grading services, interested parties can visit the PSAcard.com website.

Positive

• Expansion into the collectibles market through partnership with PSA
• Potential for increased foot traffic and revenue from card grading services
• Enhanced customer offering by becoming an authorized PSA dealer

Negative

• None.

Insights

Financial Analyst

This collaboration between GameStop and PSA marks a strategic move into the collectibles market, particularly trading cards. While it's an interesting diversification effort, the immediate financial impact is likely to be minimal. Here's why:

• initial rollout to "select GameStop stores" suggests a cautious approach
• Authentication and grading services are typically low-margin businesses
• The collectibles market can be volatile and subject to trends

However, there are potential long-term benefits:

• Increased foot traffic to physical stores
• Cross-selling opportunities with gaming merchandise
• Building a new revenue stream in a growing collectibles market

Investors should view this as a small step in GameStop's ongoing transformation efforts, rather than a game-changing development. The company's core business and financial health remain the primary factors to watch.

Market Research Analyst

This partnership taps into the booming trading card market, which has seen significant growth in recent years. Key points to consider:

• The global trading card market was valued at $13.8 billion in 2023 and is projected to reach $25.9 billion by 2028
• PSA is a respected name in card grading, which could lend credibility to GameStop's offering
• This move aligns with the trend of "retailtainment" - combining retail with entertainment experiences

However, success will depend on execution:

• Training staff to handle valuable collectibles
• Managing customer expectations on grading turnaround times
• Competing with established card shops and online platforms

While this collaboration shows GameStop's willingness to innovate, it's unlikely to significantly impact the company's bottom line in the short term. Investors should monitor the rollout and any data on customer adoption rates.

GRAPEVINE, Texas, Oct. 15, 2024 (GLOBE NEWSWIRE) -- GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today announced it has entered into a collaboration with Collectors, through its Professional Sports Authenticator division (“PSA”). PSA offers the world’s largest and most trusted trading card and autograph authentication and grading services. As part of this collaboration, GameStop will become an authorized PSA dealer, and PSA will provide authentication and grading services for trading cards through select GameStop stores across the United States. Please visit http://www.gamestop.com/card-grading-service for a store locator and summary of the GameStop/PSA submission process, and visit PSAcard.com to learn more about PSA’s authentication and grading services.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS - SAFE HARBOR
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current beliefs, views, estimates and expectations and are subject to risks described in in the Company’s periodic filings made from time to time with the SEC and available at www.sec.gov or on the Company’s investor relations website (https://investor.gamestop.com). For example, forward-looking statements include statements regarding when the Company anticipates reconvening its annual meeting of stockholders. Forward-looking statements contained in this press release speak only as of the date of this press release. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

Contact

GameStop Investor Relations
817-424-2001
ir@gamestop.com

FAQ

What is GameStop's new collaboration with PSA announced on October 15, 2024?

GameStop (NYSE: GME) announced a collaboration with Collectors' Professional Sports Authenticator (PSA) division, becoming an authorized PSA dealer and offering authentication and grading services for trading cards at select GameStop stores across the United States.

How will the PSA collaboration affect GameStop's (GME) business?

The collaboration will allow GameStop to expand its offerings in the collectibles market, potentially increasing foot traffic and revenue by providing PSA's authentication and grading services for trading cards at select stores.

Where can customers find information about GameStop's (GME) new card grading service?

Customers can visit GameStop's website at gamestop.com/card-grading-service for a store locator and summary of the GameStop/PSA submission process.

What services does PSA offer in its collaboration with GameStop (GME)?

PSA offers the world's largest and most trusted trading card and autograph authentication and grading services, which will now be available through select GameStop stores as part of their collaboration.