GameStop Has More Than Just a Console Demand Problem
GameStop (NYSE: GME) CEO George Sherman wasn't joking when he declared tepid demand for game consoles as the crux of the reason the video gaming retailer's quarterly results were such a disappointment. Neither Microsoft (NASDAQ: MSFT) nor Sony (NYSE: SNE) have introduced an updated Xbox or PlayStation, respectively, in over a year, and neither company has brought a true next-generation device to the table in many years.
GameStop's woes aren't merely the result of the console market's current down cycle, though. The gaming retailer's numbers are decidedly worse than the industry's as a whole, and were worsening even before the industry hit a headwind. Rather, GameStop's struggle is far more structural. Gamers just don't need to buy consoles and games the way they used to.
Image source: Getty Images.
Source Fool.com
