Companies do not tend to announce poor figures concerning their stock price outlook for the year. GameStop did just that according to venturebeat.com “During a conference call with shareholders yesterday, GameStop’s executive team indicated that the retail outlet is expecting new hardware sales to drop around 10 percent year-over-year. The company also expects new game sales to decline between 5 percent and 10 percent. The worldwide gaming market is $99.3 billion annually, and GameStop has established an impressive share of that console section of that business.”
GameStop, a money maker from game console sales, is predicting a drop in game console sales most likely because of the focus on mobile games and free games that have been picking up momentum lately. Game consoles were once a giant in the gaming industry but are now being beaten by mobile friendly gaming. This is not a surprise due to the increasing number of smart phones and tablets. A smaller percentage of people are now playing gaming consoles such as the PS4 and Xbox One. Sony and Microsoft will have to find a way to change the marketplace if they want to stay relevant.