Enlarge / Looks as if an excessive response to purchasing a console and not using a disc drive, however OK…
The newest quarterly earnings report from GameStop does not present a lot signal of a turnaround for the long-troubled sport retailer. Gross sales had been down 26.7 % yr over yr for the April by means of June quarter. Even accounting for everlasting retailer closures and COVID-related lowered working hours, so-called comparable “same-store” gross sales had been nonetheless down 12.7 % yr over yr. GameStop’s already depressed inventory is down practically eight % on the information, as of this writing.
GameStop nonetheless publicly sees an “alternative to capitalize” on the upcoming launch of recent Sony and Microsoft consoles, which may assist flip its enterprise round within the quick time period. However there’s some cause to consider the approaching era of consoles may truly make GameStop’s long-term prospects worse, due to console choices that do away with disc drives completely.
Placing on a courageous face
In an earnings name, GameStop CEO George Sherman acknowledged that “there was progress in digitally downloaded video games” and stated GameStop is “not debating the expansion of digital gaming.” However he additionally tried to place a optimistic spin on the destiny of GameStop’s bodily sport gross sales going into the following era of consoles.Learn 15 remaining paragraphs | Feedback
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