GameStop shares slide 6% premarket after Netflix makes first videogame hire signaling potential shakeup of sector

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GameStop Corp. shares GME, -6.91% slid astir 6% successful premarket commercialized Thursday, aft Netflix Inc. NFLX, +1.34% announced its archetypal large videogame hire, perchance signaling a determination beyond its streaming-video roots. The streaming elephantine hired Mike Verdu arsenic vice president of crippled development, poaching him from Facebook Inc. FB, -1.27%, wherever arsenic vice president of contented for Reality Labs, helium oversaw Oculus Studios arsenic good arsenic the teams bringing second- and third-party virtual-reality games and different apps to Oculus virtual-reality headsets. Before that, Verdu was elder vice president of mobile for Electronic Arts Inc. EA, -0.09%, liable for mobile crippled studios that operated franchises similar "The Sims," "Plants vs. Zombies" and "Star Wars: Galaxy of Heroes." "Putting this together, it is intelligibly inactive aboriginal days and overmuch of the item remains to beryllium clarified, but this feels similar a important lawsuit with wide ramifications crossed the video games landscape," Citigroup expert Thomas A. Singlehurst wrote successful a note. Singlehurst expects the determination to accelerate the determination of video games to cloud-based platforms, "and that this could bring with it the hazard of disruption successful the signifier of a displacement successful the monetization exemplary for the accepted PC/console broadside of the market." Electronic Arts shares and Activision Blizzard ATVI, -1.00% shares were somewhat lower. Take-Two Interactive Software Inc. TTWO, -0.96% was down 0.2% and Sony sne was down 0.4%. Zynga Inc. ZNGA, -1.03% was down 0.2%. Netflix shares jumped 2.4% and are up 1.3% successful the twelvemonth done Wednesday, portion the S&P 500 SPX, +0.12% has gained 16%.

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