Analyst: GameStop made error in not buying Gamestation

Wedbush Morgan analyst Michael Pachter believes GameStop made a big mistake by not buying Gamestation, according to

videogaming247

.

GameStop was expected to come in for the ex-Blockbuster owned chain, before GAME made a bid, and Pachter feels this has slowed GameStop’s move into Europe.

GameStop always had the capacity to make inroads in Europe, but for some reason, expansion there has been painfully slow,” he told videogaming247. I think they made a strategic error in not buying Gamestation, allowing GAME to get even bigger and placing them at a competitive disadvantage in the UK. The rest of Europe is wide open (Micromania is strong in France), and I expect GameStop to do well on the Continent.”

GameStop earlier reported sales and net earnings rose 33 per cent and 82 per cent respectively, spurring on an ambitious target to open up to 600 new stores by the end of the year.