Before streaming and downloading games on your console was a thing, going to a video game store was like walking into a candy shop. Browsing games on the shelf for the best deal on an old classic favorite or rushing in to pick up your pre-ordered game you bought years in advance. Gamestop was probably many gamers store of choice in some cases. Now with the rise of video game streaming, Gamestop is looking very close to meeting its end very similar to how Blockbuster did years ago during the age of video streaming.
In a recent report by CNN Market, Gamestop’s stock has fallen as low as $4.60 vs. previous highs of $50 to $60. The downward trend started shortly after Gamestop was hesitant to sell the company and was not able come to an agreement on a proposed buyout for a potential suitor. The outcome was the January 2019 stock plummet lowering it more than 20%. Shortly after around April, their shares went down another 14% after they announced they would not offer annual earnings per share guidance to investors.
Given the planned cost savings and profit improvement initiative and the announcement of a new CEO starting on April 15, 2019, the company is not providing annual earnings per share guidance at this time.
So what can Gamestop do to get them out of this hole and possibly survive? It may be possible they continue to use their company as a place of social gatherings to bring gamers together for midnight releases and tournaments as long as the younger generation partakes in those events more. Unfortunately, There is simply no way of telling right now and the ice is looking thin.
We are entering a new era in gaming and with the extreme amount of space on our current and future gen consoles and computers, going to a video game store is becoming a thing of the past. Streaming and downloading games has become easy and much more convenient in many cases. The amount of sales on console stores online also can save the consumer a lot of money. It may be a tough fight for Gamestop to keep their presence in the long run.