Xbox One Games Pass was announced today and is making headlines…..just not in the way GameStop was hoping for.
The company’s shares dropped drastically today following Microsoft’s announcement of Xbox One Games Pass. Venture Beat even noted that shares fell by almost 8 percent today, and closed at 7.8 percent. Venture beat went on to say that this program will primarily distribute older games that people normally would purchase second hand. As a result, this is expected to cut heavily into GameStop’s market share.
Could this heavily damage GameStop in the long run? Or is this just an immediate panic sell? It is possible shares will rise back up soon.