Piper Jaffray analyst Michael Olson said comments from video game publishers and others in the industry lead him to the "best guess" that all video game purchases will be digital in about 6 years, or possibly sooner if the market spikes to 100% more quickly after reaching "critical mass" in a few years. Game publishers, including Activision Blizzard (ATVI), Electronic Arts (EA) and Take-Two (TTWO), will benefit from margin expansion as the industry approaches 100% digital, added Olson, who keeps Overweight ratings on all three game makers' shares. Another company often cited as being impacted by the industry's move to digital game downloads is retailer GameStop (GME).

Bullish option flow detected in GameStop with 44,913 calls trading, 1.9x expected, and implied vol increasing over 3 points to 96.82%. 4/26 weekly 11.5 calls and May-24 12 calls are the most active options, with total volume in those strikes near 7,700 contracts. The Put/Call Ratio is 0.10. Earnings are expected on June 5th.

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