PS3 News: GameStop Revenue Soars Due To GTAV, But Stock Falls - PS3 News

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GameStop Revenue Soars Due To GTAV, But Stock Falls

When a mega blockbuster like Grand Theft Auto V launches, the retailer is bound to benefit.

Thanks to the record-breaking launch of GTAV in September, GameStop's third-quarter report looks mostly rosy.

New software sales rose 43.1 percent to $1.1 billion and new hardware sales increased 15.3 percent to $213 million, thanks to a strong showing by the Nintendo 2DS and 3DS. We won't see sales reports for the PlayStation 4 or Xbox One until next quarter, obviously. But while software and hardware climbed, other categories fell:

Overall pre-owned sales fell 2 percent to $486.6 million (down from $496.3 million last year), and its mobile business saw sales fall from $321.9 million to $305.2 million. Still, all told, global revenue was up 18.8 percent year-over year ($2.11 billion), and the retailer posted a profit of $68.6 million for the quarter, well up from the net of $47.2 million in 2012.

Said GameStop CEO Paul Raines:

Our strong third quarter sales results give us great momentum as we enter the new console cycle. Consumer appetite for the new consoles is very strong judging by last week’s successful PS4 launch and the excitement for tonight’s Xbox One launch event. Globally, we are executing our unique playbook to maximize our position of strength."

And yet, all this didn't help their stock. Shares have fallen off significantly, down nearly 10% to $47.33. This could be due to the retailer's predictions for the holiday quarter, which aren't quite as high as anticipated.

Tags: gamestop, gamestop sales, video game sales, gamestop stock

11/21/2013 10:58:23 AM Ben Dutka

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Comments (5 posts)

MRSUCCESS
Thursday, November 21, 2013 @ 11:21:04 AM
Reply

I feel like Gamestop is not representative of what most gamers would like from a mainstream gaming store. The customer service is terrible, the prices and deals are just not worth it most of the time. I don't wish anyone bad but I'll spend my money in another gaming store where I feel like a valued customer.

I have not entered or bought anything at Gamestop in years...I think Fallout 3 was the last game I bought there.

Last edited by MRSUCCESS on 11/21/2013 11:22:18 AM

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WorldEndsWithMe
Thursday, November 21, 2013 @ 11:52:43 AM

It's amazing that Gamestop became the last standing game specialty store, they are so evil. Gamers deserve better.

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firesoul453
Thursday, November 21, 2013 @ 1:15:15 PM

What makes gamestop more evil than any other large store

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WorldEndsWithMe
Thursday, November 21, 2013 @ 11:53:55 AM
Reply

I'm sure intelligent investment firms know that physical retail stores like Gamestop can only diminish in returns until they are gone entirely so they aren't going to put much money into their stocks.

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PlatformGamerNZ
Thursday, November 21, 2013 @ 5:02:04 PM
Reply

well thats interesting i wud've thought will sales being up and probably going to go up further that the stock wud be up but okay.

happy gaming =)

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