An analyst from Broadpoint AmTech says GameStop should look for the first big impact from digital distribution in 2017, but is upbeat about their near-term performance.  Reported by Industry Gamers, analyst Ben Schachter says his firm has initiated coverage of the game retailer with a buy rating and $33 per share target.

Schachter tells IG that the growth of digital content is still overcoming barriers, including broadband adoption and hard drive space on consoles.  He anticipates the current console cycle will run through 2014.  He also cites issues on both the retailer and consumer side of the industry as barriers to digital growth.  The importance of retail marketing to help sell games is often overlooked, he says.  And as a study by GameStop found, the game consumer still puts $10-20 additional value on physical packaged product.  Schachter sees games eventually impacted by factors similar to what the music industry has seen in its shift to digital, yet amidst that gloomy comparison stays positive on GameStop’s ability to continue profitability.

Read more at Industry Gamers {link no longer active}.