Will GameStop Signal Gaming Recession?

Earnings Report for Retail Giant Tomorrow

Thus far the gaming industry has been relatively immune to the downturn in the US economy. When Gamestop reports its quarterly earnings tomorrow, that all could change.

Analysts predict the retail giant to double its earnings, and that revenue will jump by more than a third. The company has beat Wall Street expectations for the past five quarters. But recent NPD sales figures show gaming software in particular trending downward–even with the Grand Theft Auto IV blockbuster.

If Gamestop meets or beats the street, it could pave the way for investors to have faith in the industry as a whole in a time when both food and gas prices are shooting through the roof. If GameStop falls short, the Street may be concerned that nothing is safe from the anomalies of a weak dollar and an even weaker oil supply.

If there’s any indication right now of what’s to come from tomorrow’s announcement, it’s in GameStop’s current stock price. The stock closed the trading day down nearly one percent.

TSSZ News will bring you news of Gamestop’s quarterly report when the details are released tomorrow morning.