Holiday Sales at GameStop Were Down 27.5% in 2019
As the video game industry winds down and prepares for the next-gen consoles, GameStop reports a decline in 2019 holiday sales.
Despite the holiday rush and games like Pokemon Sword and Shield and Call of Duty: Modern Warfare releasing last holiday, GameStop hasn’t caught a break. In a report from Gamesindustry.biz, GameStop’s holiday sales were down 27.5% compared to holiday sales in 2018.
GameStop says they brought in 1.83 billion during the 2019 holiday season, which is less than the 2.77 billion they made in 2018. Because of this, they’ve decreased their expectations for 2020 in the 19% to 21% range. Prior to them decreasing their expectations, the decline was between 5% to 10%. Additionally, GameStop says the decrease was based on a decrease in people buying consoles and games. Additionally, GameStop’s CEO says the sales were “indicative of overall industry trends impacting the video game industry.”
“While we expect the challenges that we faced in the fourth quarter to continue into fiscal 2020, we believe we have the right long-term action plans in place to optimize profitability and increase new revenue streams in advance of new console introductions for holiday 2020,” says GameStop CEO George Sherman. “We look forward to delivering progress against our strategy as we move through the year.”
With declining sales and several executives stepping down, including their CFO of nine years, GameStop has had a rough few years. Back in August, GameStop announced a store reorganization which includes a bigger focus on experiences, esports, and more retro items available. However, this reorganization has led to dozens of layoffs within the company and 180-200 stores being closed last year. With the industry shifting to digital games, GameStop’s CEO is confident with the company’s future.
Once the Xbox Series X and PlayStation 5 launch later this holiday, GameStop is bound to see a boost in sales numbers. As more news comes out about GameStop and the next-generation consoles releasing this year, we’ll be sure to let you know.