GameStop (GME) – Get Report said Thursday that it entered a multiyear strategic partnership agreement with Microsoft (MSFT) – Get Report that the videogame retailer said would expand its product offerings and enhance its retail infrastructure.
Shares of the Grapevine, Texas, company were soaring nearly 20% to $11.19, while Microsoft was up slightly to $210.59.
Under the agreement, GameStop will standardize its back-end and in-store solutions on Dynamics 365, Microsoft’s portfolio of cloud-based business applications and customer data platform.
GameStop said this would enable store staff to access omnichannel insights about customer preferences and purchasing history, real-time information on product availability, subscriptions, pricing, and promotions.
Associates will be equipped with new Microsoft Surface devices, which will enable them to move freely within the stores.
GameStop said it planned to roll out Microsoft 365 and Microsoft Teams, the business communication platform, to its stores. With Teams, store associates will more easily be able to ask questions and share insights with one another.
GameStop has expanded its Xbox product offerings to include Xbox All Access, which provides an Xbox console and 24 months of Xbox Game Pass Ultimate to players with no up-front cost.
GameStop operates more than 5,000 stores across 10 countries,.
“This is an exciting day at GameStop,” Chief Executive George Sherman said in a statement, “as we announce the advancement of an important partnership that capitalizes on the power of our operating platform and significant market share in gaming to accelerate our digital transformation; drive incremental revenue streams; and over time, further monetize the digital world of gaming.”
Last month, Ryan Cohen, GameStop’s biggest individual investor, reportedly said he believed the company could rival Amazon.com (AMZN) – Get Report and was holding talks with management and several board members.