It seems that the age of PS3 and Xbox360 is nearing its end, as GAME retailer faces underperformance in holiday sales due to the massive drop in old-gen gaming sales. The company’s shares have dropped as well, leading the public at large to believe that brick-and-mortar retailers may face the same threat of disappearance like the old consoles themselves.
Although PS4 and Xbox One game sales rose by 20% during this period, mostly due to major video game releases as well as a constantly rising list of available games for the aforementioned consoles, it was not enough to keep the company afloat. Old format games for the PS3 and Xbox 360 gaming consoles fell by a staggering 56%. One of the reasons for this phenomenon could be the fact that players would opt for the digital versions of these because of their cheaper price as well as higher ease of access.
The UK gaming retailer was also faced with a considerable drop in gaming console purchases made in the last 3 months. The drop was about 27%, lowering the total income value to $147 million. This drop was not only for the old generation consoles, with new consoles facing them as well, most likely because the majority of gamers have already switched to the new generation consoles earlier this year.
When compared to last year’s sales, the difference is astounding, with a drop of 37% during the same period. After releasing news concerning their profits, GAME saw its shares plummet by 40%, making investors actively fear the odds that the retailer may be facing bankruptcy if this trend will continue in 2016.
Odds that the company will be unable to remain somewhat afloat are still relatively low. More and more users choose to completely switch from brick-and-mortar retailers to digital ones, due to various reasons ranging from ease of access to better sales or offers. The fact that the game will also remain in the cloud, without the threat of disc damage that physical copies possess, and you would see why this type of retailers are slowly starting their descent towards bankruptcy.
UK companies are not the only ones facing harsh market conditions. US Gamespot has also had its shares of sale plummets over the past year as well. Even if these types of companies will choose to focus more on hardware sales like PC components, the fact that location-based retailers around the world are suffering from share dips still remains, nonetheless.
It is still unclear if the news that GAME retailer faces underperformance in holiday sales is beneficial to the public at large or not. One of the only benefits for gamers that can be speculated upon at this point is that through the disappearance of brick-and-mortar stores, exclusive DLCs allocated to Gamespot or GAME will go extinct as well, leading to a more friendly gaming environment for every gamer out there.