GameStop will earn revenue on digital sales from every Xbox it sells

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GameStop will earn revenue on any digital content that is purchased on an Xbox Series S and X thanks to a new partnership the retailer has set up with Microsoft.

According to some insight by a firm named DOMO Capital Management, under GameStop’s new partnership with Microsoft, the retailer is set to profit from any Xbox the store sells – even once it’s left the store.

If you buy an Xbox Series X from GameStop, for example, and then proceed to download a digital copy of Cyberpunk 2077 or Call of Duty Black Ops Cold War, GameStop will get a cut of the revenue you generate.

Today $GME confirmed with @DOMOCAPITAL that the agreement with $MSFT includes revenue sharing on all downstream revenue (i.e. digital downloads and digital content) from any device that GameStop brings into the @Xbox ecosystem. GameStop now meaningfully participates in digital.
— DOMO Capital Management, LLC (@DOMOCAPITAL) October 14, 2020

The same goes, in theory, for any movies you buy or rent on the device, or any DLC you purchase – Gamestop will be taking a cut.

It goes without saying, then, that the retail giant is going to be more incentivized to sell Xbox units above anything else.

GameStop – a company traditionally held back by physical storefronts pushing physical products – now has a meaningful stake in digital content.

Microsoft also gains roughly 4000 retail units that’ll be pushing its products more enthusiastically across the US; you can see how this benefits both companies in this situation.

GameStop will still be stocking and selling PlayStation and Nintendo hardware and software, of course, but expect the shop dressing and emphasis to be on Microsoft products for the foreseeable future.

You can still get installment plans for each of the next-gen consoles over at the store site, too.

The Xbox Series X/S’ November 10 launch date is nearly here, too. You can read everything you need to know about this over on our Xbox Series X/S pre-order guide.