GameStop is not having it easy this week. You would think that the company would be riding high on the reports of their recent earnings, but not so much. GME stock continues to be an overvalued rollercoaster. After-hours trading has pushed it near $200, after a days-long slide below that mark. As online sales remain the saving grace of the company, one would expect that to be the one area working well, not so much.
The company has had some growth, but not without problems. The company posted a major improvement in overall income in the last quarter of 2020, $80.5 million, or $1.19 per diluted share—a significant improvement from the $21 million in net income it earned during its fiscal fourth quarter last year. The downside is that GameStop posted a net loss of more than $215 million in all of 2020.
Today though, the problems that likely led to that loss are showing up in droves. The previous stocking issues the company experienced in 2020 may not have been fixed since then. And once again, the reports are flowing in via both e-mails to customers, as well as posts on the employee=focused GameStop subreddit. The company is having trouble meeting shipment demands for products, especially a big new Switch game, Monster Hunter Rise. That’s really not good news.
If you had a pre-order for Monster Hunter Rise like me, you may have gotten an e-mail like this one:
We are contacting you regarding your GameStop.com Order Number [redacted]. Due to increased online shopping demand, there has been a delay in shipping your order and it may arrive slightly later than expected. We sincerely apologize for this delay, as we know you are excited to receive your order! Please rest assured we are working closely with our shipping partners to deliver your order as quickly as possible.
It’s even worse this time, compared to last Christmas. Back when we reported on shipping delays during Christmas 2020, it seemed to be relegated to online orders over a dispute with FedEx. That’s not the case this time. Some store managers are reporting that their store isn’t even getting physical copies of the major Switch game for several days.
It’s pretty bad news for the struggling GameStop. The company just released its earnings report for the end of 2020. where the biggest growth sector was online shopping. Needless to say, but it’s not a good sign if a major title like this is getting hit with shipping delays across the board. It’s bad enough that pre-orders are late, but to have in-store sales affected is a nightmare. That’s especially true for the frontline employees, who are now having to field angry customers on top of a global pandemic, as well as the nonsense that is GameStop policy.
In this case, though, there may be a bigger force at work. It’s unconfirmed, but Nintendo may be having logistics issues. This could be the root cause of the delays. This would seem to be the case as employees point out communication from Nintendo that said to expect such delays. Other claims blame Capcom for manufacturing problems. Who knows who’s to blame here, I really don’t.
Other retailers are also reporting stocking issues at local stores. A call to my local Wal-Marts revealed inconsistent in-store stocking. And it would seem that this is true for other areas as well. It’s hard to say what the root cause is, as it could be multiple factors keeping the game out of gamers’ hands.
If you can, you may want to cancel your orders and download it if you can’t wait for shipping delays to clear up.