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GameStop CEO says next Xbox a 'hot, compelling' device, still skeptical on streaming

Microsoft's next Xbox console is something to be excited about, according to GameStop CEO J. Paul Raines.

Speaking with, Raines said GameStop has been "spending a lot of time" with Microsoft, and they're waiting for the company to unveil the console before speaking to it further.

"It will be a very hot, compelling device," he said. "They are doing some really cool stuff, and I'm eager to hear them start their announcements because I think the world is going to stand up and take notice."

Raines said digital will not replace retail, as he believes consumers will want to keep both purchase options on the table. According to Raines, seven percent of GameStop's revenue comes from digital sales, but most of these digital goods are paid for in-store. Both can co-exist, but consumers "just aren't ready to go massively digital yet."

He also said GameStop has done "a couple betas" using its streaming game service run by Spawn Labs, which GameStop acquired in 2011. According to Raines, "every streaming product has failed so far," and he is skeptical of the product after the recent events surrounding other cloud gaming companies.

"OnLive was a disaster, Gaikai was taken off the market by Sony and they haven't really come to market, Otoy hasn't come, and so what we see is streaming has to be positioned differently." he said. "We're trying to understand consumers so we can position it the right way, and that's why you haven't seen [GameStop] talk a whole lot about it."

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