Drop in Hardware Sales Reported by GameStop; Rumors and Announcements of New Consoles Impacted Sales

Drop in Hardware Sales Reported by GameStop; Rumors and Announcements of New Consoles Impacted Sales

GameStop reported today its financial results for second quarter of fiscal year 2016, announcing a significant drop of new hardware sales at the retailer year on year.

The decrease in new hardware sales was 33.4%, while new software dropped 18.2%.

New software sales for PS4 and Xbox One (combined) dropped by 11.6%, while pre-owned software sales for the same consoles rose by 32%. New and pre-owned software sales for PS3 and Xbox 360 dropped by 74% and 39% respectively.

Interestingly, we learn from Chief Financial Officer Robert Lloyd that rumors and announcements of new consoles around E3 also impacted hardware sales negatively.

“We saw a noticeable drop-off in hardware sales after announcements or rumors of console refreshes leading into and during E3”