Bad News for GameStop: Video Game Sales Saw Steep Decline in May
Spending on video games surged at the pandemic's onset as billions of people were spending more time at home than they would like. It looks like the trend is reversing as economies reopen and folks look to spend more time outdoors.
Consumer spending on video game hardware, content, and accessories fell 19% in May from the year-ago month. The $3.7 billion of spending in May was the lowest since February 2020. Let's look at why the slowdown is bad news for video game retailer GameStop (NYSE: GME).
In its most recent quarter, which ended on April 30, GameStop reported $1.378 billion in sales. That increased from the $1.277 billion it reported in the same quarter of the prior year. GameStop is a brick-and-mortar retailer with thousands of locations worldwide. As a result, it was devastated at the pandemic's onset when it had to shut its doors to customers temporarily. It has been bouncing back steadily, buoyed by a resilient gaming market.
Source Fool.com
