GameStop expects new PlayStation 4, Xbox One, and other hardware sales to drop 10% in 2016

GameStop doesn’t share Wall Street’s confidence about its outlook for fiscal 2016.

The world’s largest gaming-focused retailer announced that it expects to earn somewhere between $3.90 and $4.05 per share this year. Analysts were expecting something closer to $4.09. GameStop’s core business of selling video games and consoles is the big reason the company isn’t predicting big things for fiscal 2016. During a conference call with shareholders yesterday, GameStop’s executive team indicated that the retail outlet is expecting new hardware sales to drop around 10 percent year-over-year at its stores. The company also expects new game sales to decline between 5 percent and 10 percent. The worldwide gaming market is $99.3 billion annually, and GameStop has established an impressive share of that console section of that business. But it now looks appears that more of the total revenue spent has migrated from dedicated platforms like PlaySttion 4 and Xbox One to mobile and free-to-play games on PC.