GameStop leverages ‘console wars’ for stock rebound

GameStop’s stock declined 1% on Oct. 28, extending its steep 11% decline over the last month.

Earlier in the month, the retailer announced the distribution of warrants to shareholders and convertible noteholders as part of a previously declared “warrant dividend,” which analysts viewed as a form of financial engineering aimed at raising capital without incurring immediate share dilution.

With the stock still down 24% year-to-date, GameStop has seized on a pop-culture event to reassert its relevance, which helped boost its stock over the weekend, leading to a 2% gain in stock price over the week.

GameStop has become a self-proclaimed neutralizer of the “console wars.”

Following an unexpected twist in the console landscape, the retailer’s post on its X (formerly Twitter) account used a mock military tone: “GameStop declares the console wars over.”

The post continued:

All claims to exclusivity are hereby dissolved. Console loyalists are instructed to cease hostilities, disband militias, and enjoy this new era of gaming.

It noted further that “GameStop will continue to operate as a demilitarized zone, offering hardware, accessories, and trade-ins to combatants on all sides.”

The “console wars” refer to the long-running rivalry between video game hardware makers, primarily Microsoft’s Xbox, Sony’s PlayStation, and Nintendo. It has defined the gaming industry since the early 2000s, with companies fighting for dominance through exclusive titles and hardware innovations for its immensely loyal fan bases.

According to research, Sony’s PlayStation currently dominates the global gaming console market, with a market share of 45%, way ahead of its competitors, Xbox (23%) and Nintendo (27%).

This means Xbox’s move to usher in an era of cross-platform gaming through one of its flagship first-person shooter franchises, Halo, has become a market-defying move.

Related: An in-depth timeline of the GameStop short squeeze saga

The weekend saw another significant development in the gaming world — Microsoft’s Halo franchise unveiled Halo: Campaign Evolved.

Microsoft described it as “a ground-up remake of Halo: Combat Evolved’s genre-defining campaign coming to Xbox Series X|S, and PlayStation 5 in 2026.”

More Retail Stocks:

This will mark the 25th anniversary of the Halo franchise.

First released in 2001 as Halo: Combat Evolved for the original Xbox, the game helped establish Xbox as a major player in the gaming market, while also becoming a cultural milestone. Microsoft has sold approximately 81 million Halo games, according to data from 2021.

Consequently, the news, framed by Microsoft as a “definitive return trio through one of gaming’s greatest journeys,” sent ripples through the gaming community.

Related: Technology retailer closing over 1,000 stores, no bankruptcy

Microsoft’s stock rose 2% on Oct. 28, while Sony’s stock was up 0.6% as investors bet that this cross-platform play might reignite Xbox sales. According to a Bloomberg report, Microsoft has established an across-the-board target of 30% accountability or profit margins for its Xbox gaming unit.

Even the White House showed interest in the ongoing console war, reposting GameStop with an AI-generated image of President Donald Trump in a Halo avatar, labeled, “Power to the Players.”

This comes amid broader discussions around digital competition, American innovation, and the economic footprint of the gaming industry.

Related: Analysts reset gold forecasts as prices hit wall

This story was originally reported by TheStreet on Oct 28, 2025, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.