It’s not looking good for GameStop these days, as more and more games are sold digitally and not in stores. Since Sony announced PlayStation Now at CES last week, GameStop’s shares have plummeted 25% — with a massive 20% drop just yesterday.
GameStop revealed that game sales are down and said what we all know: more and more games are sold digitally, which means GameStop doesn’t get a dime. Even worse for GameStop, digital games cannot be traded in and re-sold, which is where most of GameStop’s revenue and profits come from.
Since it’s easier, and since consoles now ship with massive harddrives, gamers are opting to purchase many of their games digitally. Digital game sales have increased each year over the past five years, as retail games sales have slowed.
If there’s one company out that that’s hurt by this trend, it’s GameStop. And with Sony’s new PlayStation Now service for the PlayStation 4 and Vita, there won’t be any need to buy games at all — gamers can simply stream the games to their devices.
PlayStation Now will definitely cut into GameStop’s used PS4 game sales, as PlayStation 4 owners will be able to stream pretty much any PS3 game to their PS4.
It’s only a matter of time before GameStop becomes the next Blockbuster.