GameStop: Lack Of PS3/360 Price Cuts Hurt Our Bottom Line
Normally, when a new generation rolls around, last-gen hardware prices fall pretty rapidly.
But we haven't seen that yet for PlayStation 3 and Xbox 360, and GameStop blames this on lower-than-anticipated hardware sales.
During a post-earnings conference call, GameStop president Tony Bartel agreed with an analyst who said price drops for the older platforms are long overdue:
"We think it would be excellent and definitely would increase the sell-through rate on the old-generation consoles. We definitely think that would help."
Bartel added that he has no direct knowledge of any upcoming price cuts. The retailer expected these cuts to happen during the year and without them, PS3 and 360 software and hardware are down 57.8 percent. That's "significantly more" than the company expected at the start of the year and as a result, GameStop has been forced to lower its fourth quarter forecast.
On the flip side, PlayStation 4 and Xbox One sales remain strong. The installed user base is 73 percent higher than the PS3/360 user base over the same period of time a year ago, and that's impressive. Looks like everyone's just far more interested in jumping into the new consoles; don't forget that last generation limped on for a while. "Generational fatigue" was a very real thing...
11/21/2014 11:11:08 AM Ben Dutka