This week GameStop has reassured their investors that there seems to be no delay for either the PlayStation 5 or Xbox Series X as the coronavirus (COVID-19) pandemic worsens. As far as they can see, everything is running on time and as planned.
The company’s CEO, George Sherman, explained his understanding of the effects of the coronavirus on the next-generation hardware in a post-earnings conference call. He said that so far there’s no indication that GameStop will see a delay in receiving the consoles, and there should also be no delay in putting them on sale to the public.
Sherman described the overall impact of the coronavirus on product deliveries for GameStop as minimal.
These comments were made by Sherman as part of a discussion about the overall effect of the coronavirus on GameStop as a business. The company has had to close stores around Europe, including Italy and France, as well as in Canada. Currently it’s still possible for consumers to purchase goods online and pick them up from the curbside at US stores.
As a result of how much uncertainty there is surrounding the pandemic, GameStop has made the decision not to offer any further advice regarding financial results to investors. The only advice that Sherman offered was that the first three quarters of 2020 would be tough, followed by a much better fourth quarter.
GameStop has been heavily criticized for the way they have behaved so far during the coronavirus outbreak. Initially the company wouldn’t close stores because they deemed themselves as ‘essential’, since they offer people something to keep themselves occupied in self-isolation.
When employees claimed that they were being forced to take annual leave or sick leave if they were worried, pressure from the press and local governments finally forced them to close stores altogether.
It is unknown just how long people in the US will need to remain in self-isolation for. The impact on GameStop could become more drastic if these measures are put in place for months. However, with the launch of next-generation consoles seemingly unaffected, the company could bounce back if they can hold out until late 2020.