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It seems that the holiday season didn’t go as planned for GameStop, as their sales decreased above expectations for the 9 week holiday period.
GameStop stated that their sales during the holiday reached $1.83 billion, it was $2.77 billion in 2018, meaning their sales have dropped by 27.5%.
“We expected a challenging sales environment for the holiday season as our customers continue to delay purchases ahead of anticipated console launches in late 2020,” said George Sherman, GameStop chief executive, in a statement. “However, the accelerated decline in new hardware and software sales coming out of Black Friday and throughout the month of December was well below our expectations, reflective of overall industry trends.”
The retailer company was expecting a 5 to 10% drop in sales this year but after their latest report, their expectations have changes to around 19 to 21% drop in sales.
Even with the massive drop in sales, George Sherman is still confident that their long-term plans will enable them to achieve the required results and find new sources of revenue, especially with the release of the new generation of consoles (PlayStation 5 and Xbox Series X) this year.