Video game retailer operating on 12. On 9 November, customers queued up at a store in Manhattan to announce the third quarter results on Tuesday.
Photo:
Allergy/ Reuters Carlo
GameStop’s
The weight loss contest was a small success. However, investors got carried away too quickly by the complexity of the recovery.
At the end of Tuesday, a video games seller announced disappointing results in the third quarter. Revenue for the year ending 31. The quarter ended in October, down 30% from the previous year to just over $1 billion, 7% below Wall Street’s forecast. In addition, the company refuses to give a forecast for the current period, which is expected to be strong given the launch of the new Xbox and PlayStation consoles in early November. On Wednesday morning, GameStop’s share price dropped by more than 17%.
These consoles come at a crucial time for a struggling retailer. GameStop’s activity in the field of video games has been severely disrupted in the past by the rapid digitisation of information in this sector. According to analysts, between a third and half of all games currently sold can be downloaded in digital format. This limits GameStop’s ability to retain part of the original sales, as many of these sales are made directly by the publisher or on console platforms such as Xbox Live. It also reduces future sales of used games – historically the largest source of income for GameStop.
This is why gaming devices such as consoles and related equipment have been the key to attracting customers to GameStop’s shrinking business. But the consoles themselves are now very difficult to obtain, because the growing demand meets the limited supply. Shops are selling everywhere and the black market is booming.
Sony
The PlayStation 5 currently receives around $2,000 for
eBay
-four times the selling price. Director of GameStop
George Sherman
According to GameStop’s sales forecast for Tuesday, the new consoles will generate a strong demand for portable consoles for next year and beyond.
But the value of GameStop shares almost tripled over the year, according to yesterday’s report, as investors expected a strong rebound in sales driven by new cars. Equities are also a popular target for short sellers, contributing to their volatility. As a retailer, GameStop must experience the most entertaining Christmas ever. But if there are not enough new consoles on the shelves, investors can always leave a chunk of coal lying around.
With the release of the PlayStation 5, Sony could have a hit in this festive season. Thus, the Japanese electronics giant created the popular game system that will be the jewel of the company. The picture is an illustration: Mary Pylaev/HVSW
Write to Dan Gallagher at [email protected].
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