GameStop responds to Sony pulling PS4 digital download codes from stores

GameStop has responded to Sony pulling PS4 digital download codes from stores. Sony announced that they would no longer be selling PS4 digital download codes in stores in late March 2019; instead, the company will only permit digital download codes to be purchased via the PlayStation Store. GameStop was one of many retail locations where gamers could purchase these codes at physical locations as well as at their online store.

A recent GameStop conference call with investors addressed the issue of PS4 digital download codes no longer being available at their retail locations. One investor representative raised the concern about whether or not the lack of these codes would impact their sales. GameStop, in turn, responded that they weren’t all that concerned about the shift as players would ultimately still be making other purchases for the PS4 at their retail locations.

Here is where PS4 digital download codes were addressed during the GameStop conference call:

Colin Sebastian (Robert W. Baird & Co.)

And maybe just one quick follow-up on the digital side and Sony’s decision to see sales of point codes and retail stores, I wonder if you could size, how much impact that might have on your digital receipts and if you have any comment on motivations behind that decision? And I’ll leave it there. Thanks.

Daniel DeMatteo (GameStop Executive Chairman)

There is, as I understand and in discussions with Sony about this, there is some effort associated with providing that what we call code to content to sell the full game download as content. Most of the sales of full game downloads whether at retail came in the form of the — actually the currency.

So, the move by Sony to go back to the currency model, we don’t expect to have a material impact on our results because we’ll continue to sell that currency for that customer that wants to buy it in GameStop stores whether they want to pay in cash in trades or unwilling or unable to put a credit card on the Internet.

In short, GameStop will still be selling digital currency for the PS4 and players will make use of that to purchase the digital download codes on the PlayStation Store. GameStop doesn’t anticipate any major issues with revenue shortfalls in this respect, although only time will tell whether that’s ultimately the case.