GameStop Corp. GME, -13.54% shares dropped in the extended session Monday after the videogame retailer forecast same-store sales below the Wall Street consensus and said that holiday sales had dropped more than 25%. GameStop shares fell 9.8% after hours, after closing flat at $5.43 in the regular session. For the nine-week period ending Jan. 5, GameStop said global sales fell 27.5% to $1.83 billion, and same-store sales fell 24.7%.
Gamestop's response is the drop is expected prior to the next console generation coming soon, though I'm skeptical that is the full picture. Used game sales have been GameStop's bread 'n butter, but the growth of digital storefronts and F2P games is cutting into that market. From what I understand Gamestop still is in good financial standing, so I don't think they're going anywhere in the short term, but I think Gamestop needs a fundamental re-design going into the XBOX/PS5 era, as being a used game/merch junk store isn't sustainable in the long run.