Thursday, September 28, 2023
Homethe tech betConsole games face online challengers

Console games face online challengers

Video game retailer GameStop forecasts lower-than-expected quarterly earnings on weak sales of games for older consoles, and console game sales could fall even further, according to one tech expert.

it expects quarterly earnings of between $1.85 and $1.95 per share while analysts were expecting $2.14 per share, according to Thomson Reuters.

A man uses an XBox One while waiting to buy a console from a Microsoft pop-up shop at the Time Warner Center in New York.Getty Images

This comes after the launch of two new gaming consoles, the One and the 4, late last year.

(Read More: Microsoft's Xbox One joins the game)

"These consoles are just getting started, but there may be a drop off between last fall's sales and the next six months or so since there won't be many new games," said Scott Stein, CNET senior editor.

But console makers, some game developers and retailers could be facing a longer-term challenge as players shift from consoles to their computers and mobile devices, according to Stein.

(Read More: Grand Theft Auto V's staggering haul for Take-Two)

"Social games, free or cheap mobile games, these all pose threats," Stein said. "And now game controllers for mobile may slowly create a deeper gaming market on iOS and Android [devices] as well as TV play later in the year," Stein added.

In 2013, the video game industry generated an estimated $93 billion in sales and that number could reach $111 billion by 2015, according to research firm Gartner.

And the mobile share of game sales could grow from $13 billion last year to $22 billion in 2015, according to Gartner's estimates.

—By CNBC's Althea Chang.


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