GameStop Weighs in on Possible PS5 and Xbox Series X Delay
The status of next-gen consoles amid the ongoing COVID-19 pandemic remains in flux. Both Sony and Microsoft have assured fans that the PS5 and Xbox Series X are, respectively, still planned for release in late 2020. Of the most likely to be affected parties is GameStop, which heavily relies on hardware sales and is relying on the next-gen console launches to have a successful 2020. GameStop CEO George Sherman was recently asked his thoughts about the potential delays– and he remains optimistic.
In a recent investor call, Sherman said that, so far, hardware deliveries to GameStop have been "minimal." The idea being that if there's an issue that will affect PS5 and Xbox Series X manufacturing, it might first be seen in the availability of current-gen consoles. Sherman made clear that there is no immediately evident indication that this holiday's console launches will be impacted by the coronavirus.
That is, of course, ignoring that the coronavirus itself is a very large indication that everything in 2020 may end up changing to one degree or another. Sherman does acknowledge this to some degree, and GameStop notably refused to provide guidance for shareholders for the duration of 2020. Sherman did acknowledge that the first three quarters of 2020 would be challenging, but that the holiday season would be strong due to the new console launches.
Sherman's comments likely deserve to be acknowledged with some skepticism, of course. Sherman very clearly recognizes how important the holiday quarter of 2020 will be for GameStop and how the next-gen consoles are key to that. While there's plausible deniability about the status of the next-gen consoles, GameStop will embrace it. To do otherwise would be to offer nothing but a disastrous 2020.
GameStop locations are currently closed in countries including Canada, France, and Italy. GameStop's also been forcibly closed in several states in the US, including California.
One thing that's working out for the next-gen consoles is that China appears to be on the backend of the pandemic's spread. With China recuperating, manufacturing for the hardware required for next-gen consoles may be ramping up, as both Sony and Microsoft need it. That's no guarantee, of course, and there's no certainty that manufacturing in other regions isn't required, but will still be limited by the coronavirus.
GameStop believes next-gen consoles will still arrive holiday 2020, but it's also dependent on it.
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