Gamestop shares surged on Friday, January 26, after the company announced it would be selling its GameStop China business to China’s Capital Gaming Industry Holding Co. Ltd. for a total of $2 billion.
The move comes as Gamestop tries to turnaround its struggling business and focus on its core operations in the United States and Canada. Gamestop shares were up nearly 20% in early trading on Friday. Gamestop isn’t the only company looking to cash in on the booming Chinese gaming market. Microsoft announced earlier this week that it would be opening a new Xbox One store in China.
why gamestop stock surge
The jump in Gamestop’s stock price on Friday came as the company announced it would be selling its GameStop China business to Capital Gaming Industry Holding Co. Ltd. for a total of $2 billion. The move comes as Gamestop tries to turnaround its struggling business and focus on its core operations in the United States and Canada.
Gamestop isn’t the only company looking to cash in on the booming Chinese gaming market. Microsoft announced earlier this week that it would be opening a new Xbox One store in China. Sony is also reportedly planning to launch its PlayStation 4 console in China later this year. The Chinese gaming market is currently worth an estimated $14 billion and is growing at a rapid pace. With its large population and burgeoning middle class, China is seen as a huge growth opportunity for gaming companies.
Gamestop is back in the news with a surge in stock prices.
Today we explain what is going on with Gamestop, Microsoft, and the Chinese gaming market. Gamestop isn’t the only company looking to cash in on the booming Chinese gaming market. Microsoft announced earlier this week that it would be opening a new Xbox One store in China. Sony is also reportedly planning to launch its PlayStation 4 console in China later this year. The Chinese gaming market is currently worth an estimated $14 billion and is growing at a rapid pace. With its large population and burgeoning middle class, China is seen as a huge growth opportunity for gaming companies.
Gamestop’s move to sell its Chinese business comes as the company tries to turnaround its struggling business and focus on its core operations in the United States and Canada. The company has been struggling to compete against digital downloads and other forms of gaming. However, the Chinese gaming market is currently worth an estimated $14 billion and is growing at a rapid pace. With its large population and burgeoning middle class, China is seen as a huge growth opportunity for gaming companies.
What caused the sudden increase and what does it mean for the future of Gamestop
It will be interesting to see how Gamestop’s stock price reacts in the coming days and weeks as the company tries to turnaround its business. The Chinese gaming market is currently worth an estimated $14 billion and is growing at a rapid pace. With its large population and burgeoning middle class, China is seen as a huge growth opportunity for gaming companies.
Gamestop isn’t the only company looking to cash in on the booming Chinese gaming market. Microsoft announced earlier this week that it would be opening a new Xbox One store in China. Sony is also reportedly planning to launch its PlayStation 4 console in China later this year.