GameStop Gets Boost From Microsoft Partnership

GameStop (NYSE: GME) is partnering with Microsoft (NASDAQ: MSFT) to bring the tech giant's cloud-based business solutions and applications to the video game retailer's back-office operations. Thursday's announcement sent GameStop's shares soaring 44% higher -- helped along by a likely short squeeze as 136% the retailer's outstanding shares were sold short -- but the deal also suggests GameStop can better cope with the industry's transition to online and digital gaming. According to GameStop, the agreement will allow it to standardize its back-end and in-store solutions on Microsoft's Dynamics 365 platform, giving its employees real-time data not only on inventory, but also customer preferences and purchase history regardless of whether those purchases were made online or in-store.