At the GameStop Investor Day, COO of GameStop Tony Bartel commented on rumors of new consoles that the launch of new version of Playstation 4, Xbox One and Nintendo’s new console in future is likely. He further said that these consoles and virtual reality represent the areas where the company can grow.
His exact statement:
We are very pleased to see the introduction of the technology like virtual reality and rumored new consoles seem imminent
The thing that has got our attention from the statement of Tony Bartel, is the plural reference to the console and the use of word “imminent” could this be a hint towards the launch of the new consoles.
It is rumored that Nintendo is expected to reveal its new console ‘Nintendo NX at E3 2016. First though to be more powerful than PS4 and later turned out that the rumor regarding Nintendo NX being more powerful than PS4 was fake .
Also the rumors about revised versions of Sony and Microsoft`s consoles have gained strength in last couple of weeks. Both are expected to have better hardware and slimmer in size.
An investor directly asked Tony whether he is referring to the launch of NX and other consoles. Tony Bartel answered the question by saying “we know more than we can say” and also noted that it is the responsibility of the manufacturers to market their products.
Strategically US is one of the biggest market for consoles and the release of the new consoles can increase the profits for GamStop as Tony admitted himself that the arrival of the virtual reality and new consoles will mark a significant boost in company`s economy.
It is estimated that GamStop can make $5 billion in sales because it owns 33% share of the $15 billion market and assuming virtual reality market reaches $15 billion by the end of 2019, GameStop will make $3 billion as it owns 20% market share of virtual reality.