Why, exactly, is GameStop performing so horribly? Declining interest in physical copies? Lackluster stores? Poor customer service? According to management, next-gen hardware is what’s to blame. Following a 45.8 percent drop in hardware sales, the retailer has excused itself by claiming that everyone is waiting for the PlayStation 5 and Project Scarlett consoles.
Total revenue fell by 25.7 percent to $1.4 billion. In terms of specific results, new hardware sales dropped by 45.8 percent, a significant downturn that GameStop management said was due in part to the anticipation for the PlayStation 5 and Xbox Scarlett in Holiday 2020. Given the consoles are still about a year away from release, GameStop said it expects hardware sales to continue to slide in future quarters.