Oct 8 (Reuters) - GameStop Corp and Microsoft Corp
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
GameStop, which already sells Microsoft's flagship Xbox
gaming console, said http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20201008:nGNX4Fwz3h
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 terms of the
deal, said it planned to roll out Microsoft's 365 services and
workplace messaging app Teams in its stores and equip store
associates with new Surface devices.
Gamestop's shares closed up 44% and were 5% higher in
extended trading. The company said it would move its back-end
and in-store operations to Microsoft's Dynamics 365 platform,
which is a set of cloud-based business applications and customer
Last month, Ryan Cohen, the biggest individual investor in
GameStop and founder of e-commerce firm Chewy, raised his stake
in the company to nearly 10%, saying he was willing to become
more involved to produce the best results for shareholders.
(Reporting by Ayanti Bera in Bengaluru; Editing by Devika