Gaming Video Game Digitization Could Kill GameStop Before Next-Generation Consoles

Discussion in 'Headline News' started by tom_mai78101, Aug 3, 2019.

  1. tom_mai78101

    tom_mai78101 The Helper Connoisseur / Ex-MineCraft Host Staff Member

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    GameStop has been around for decades in the gaming industry. But over the years this video game retail giant has lost its market share and millions in share value. According to our prediction, at this rate, Gamestop might not see the next-generation of consoles. The company might be the “Blockbuster” of the gaming industry, suffering the same fate.

    Back in June 2019, GameStop saw its biggest drop as nearly 30% share value plunged in premarket trading. The retailer reported a 13.3% drop in the first-quarter revenue and a 10.3% decline in sales.

    GameStop was forced to remove its quarterly dividend to save around $157M a year. But the situation is getting worse for GameStop.

    At the start of this console generation, GameStop traded its shares at nearly $60. In November 2013 GameStop shares peaked at $55.88. Since then we are seeing a downward spiral with minor jumps in share value every now and then.

    By the end of trading on August 1, 2019, GameStop ended the day with $3.84. The main cause is the lack of console and video game sales from GameStop. Throughout this generation, an alarming rise of digital video game sales killed GameStop’s share value.

    Read more here. (RespawnFirst)
     

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