GameStop’s stock price drops as strong Xbox One, PlayStation 4 sales don’t help it hit earnings expectations

One of the biggest game retailers in the world didn’t have as great a fourth quarter as many expected.

GameStop reported a net profit of $220.5 million for its fiscal fourth quarter, which ended March 20. That’s down from $261.1 million over the same period in the previous year. Despite the launch of the new consoles, which hit during its fiscal third quarter, and Titanfall, GameStop’s earnings missed analyst expectations. The company’s earnings per share for Q4 came in at $1.89. The Wall Street consensus leading up to this report forecasted an EPS of $1.92. A slow down in last-gen software sales, the supply-constrained PlayStation 4, and a lack of software for both PS4 and Xbox One likely all played a big part in the disappoint results. GameStop also continues to face competition from online retailers and retail outlets like Walmart (which is adding used-game sales).