PS3 News: GameStop Sales Down, But Things Are Going As Planned - PS3 News

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GameStop Sales Down, But Things Are Going As Planned

GameStop sales fell over the past quarter but despite that, the company says things are "playing out as expected."

The retailer's earnings report for the second quarter ending August 3 reveals an overall global sales decline. Total sales fell 10.7 percent, down from $1.55 billion to $1.38 billion, and comparable store sales also fell 10.7 percent, which is actually slightly above the company's projections. They obviously anticipated this dip.

Perhaps unsurprisingly, GameStop's mobile and digital businesses were on the rise, leaping 121.4 percent to $55.4 million and 17.9 percent to $158 million respectively. New software sales were down 9.3 percent while hardware sales dove 19.4 percent. Well, sure what with the new consoles on the horizon, few gamers are picking up consoles right now. As for pre-owned sales, those fell 6 percent. The company reported a profit of $10.5 million for the quarter, which is well down from the $21 million last year. But this is expected, as GameStop CEO Paul Raines said in a statement:

"Through two quarters, the year has played out as expected. During this console transition period, our financial results have been supported by the continued growth of our emerging businesses. This strength helped drive a 130 basis point improvement in gross margin rate for the second quarter.

Of course, excitement continues to build for the upcoming new games and the launch of the PS4 and Xbox One. As the global gaming leader, GameStop is uniquely positioned to capitalize on the new, innovative products coming to market."

Due to the upcoming new generation, GameStop has raised their earnings projections for the full year. The PlayStation 4 and Xbox One launch in November in North America...and it will be pandemonium.

Tags: gamestop, gamestop sales, video game sales, gaming industry

8/22/2013 11:03:41 AM Ben Dutka

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Comments (6 posts)

WorldEndsWithMe
Thursday, August 22, 2013 @ 12:39:54 PM
Reply

I give them credit for surviving this long and profiting when nobody actually needs them for anything.

I should wander into my local shop and have a look around to see what's up. What I'd really like to do is ask them about is how MS is going to use them as a cudgel to combat the PS4, but I don't think they'd answer.

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Temjin001
Thursday, August 22, 2013 @ 12:43:44 PM

oh, people don't need them but that aint stopping the lines of people holding bags loaded with used games to trade-in. I think I'd hate being an employee there, especially during this time period.
It was just insane the last time I stopped in there.

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WorldEndsWithMe
Thursday, August 22, 2013 @ 12:48:43 PM

My brother uses them, he's always in there trading games and thinking he's getting a deal. I'm just happy he finally moved on from COD to Sony exclusives so I don't try to tell him how to do his purchasing. Still kinda makes me sick though.

I guess the only service Gamestop provides is convenience, you can go offload your games and put them towards more without putting any time into the endeavor. Instant gratification stuff.

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Cideus
Thursday, August 22, 2013 @ 2:41:19 PM
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On top of all the layoffs they had, I'm surprised they are still doing so well. I'm just glad I don't have to work there anymore and deal with all those Xbox fanboys. They truly are one of the worst companies to work for.

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PlatformGamerNZ
Thursday, August 22, 2013 @ 7:05:49 PM
Reply

well i don't care really. you know the eb games i have gone to over the years isn't anything like the gamestops you've told me about which is nice.

happy gaming =)

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frylock25
Thursday, August 22, 2013 @ 7:53:25 PM

eb games is gamestop in disguise. they bought all the eb games and left a few so people would think they were shopping at the competition.

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