Enlarge / How long will this be a common sight in malls across America? (credit: Flickr / JeepersMedia)
Things continue to look rough for struggling brick-and-mortar game retailer GameStop. This week, the company announced comparable store sales were down 23.2 percent year over year for the third quarter of 2019. It's a decrease led by a whopping 45.8 percent decline in hardware sales and a 32.6 percent fall in software sales.
Those are hard numbers to spin, especially when they're leading to corporate layoffs and hundreds of store shutdowns (including the newly announced shuttering of all GameStop stores in Denmark, Finland, Norway, and Sweden by the end of 2020). But GameStop CEO George Sherman attempted to put a good face on the results in an earnings call this week. There, he argued GameStop's current troubles are a predictable result of the end of the current console generation—and consumer anticipation of upcoming consoles from Sony and Microsoft—as much as anything else.
"With 'generation nine' consoles on the horizon set to bring excitement and significant innovation to the video game space, those anticipated releases in late 2020 are putting pressure on the current generation of consoles and related games, as consumers wait for new technology and publishers address their software delivery plans," Sherman said.
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