GameStop Q1 Sales Down 12%, Growth in Digital Sales Not Enough - News
by William D'Angelo , posted on 17 May 2012 / 5,226 Views
Retailer GameStop has reported on its quarter one sales for 2012. Year on year revenue fell 12.2 percent to $2 billion in 2012, from $2.28 billion in 2011. Profits dropped from $80.4 million the same quarter a year ago, to $72.5 million. GameStop has forecasted sales for the rest of 2012 to be flat to at most down five percent.
New game hardware dropped from $432.2 million in the first quarter 2011 to $348.6 million quarter one 2012 and new software fell to $731.1 million, from $914.7 million. Used hardware and software dropped slightly from $625.0 million to $619.0 million. Digital, mobile, peripheral and other items are lumped together which was down to $309.3 million, from $303.5 million. The one bright spot is the increase in digital sales, which increased 23 percent year on year.
"GameStop continues to outperform the market in new game sales through the late stages of this console cycle," said CEO Paul Raines. "Despite slower store traffic during the quarter, we achieved our earnings target due primarily to gross margin expansion and positive profit contributions from our pre-owned, mobile and digital businesses. We expect those segments to fill the profitability gap as we transition to the new console cycle."
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They open up brand new games, overprice used ones, and at checkout, try to sell you everything but the kitchen sink.
Is there any question why their sales are down?
Fuck Gamestop
I can see why GS would become a bit less popular. Personally I haven't gone there in a long time, and when I DO go there it's not to buy games, but to pick up a new controller or something. GS is no longer THE way of buying games.
Gamestop sucks,but I go there all the time,due to there greater inventory.
I hate gamestop!!! can I freaking buy a game without some jerk trying to sell me other crap even though I tell him no like 50 times
bitch slap that guy
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Deal with it.
Almost the only time I go into Gamestop now is to hunt for a rare PSP game in near mint condition at a discounted price, or there is a pre-order item I have to have to exclusive to Gamestop. Amazon is my friend when it comes to gaming shopping.
I like Gamestop an ex-Girlfriend of mine works in one so I get discount on almost every game :-D
Will not buy new games there as they open them up, and used games prices are near the cost of new ones. They should be happy that they are making the money they are.
guys gamestop bought all the COMPETITION so now they can screw us over and we have nowhere else to go
Play N Trade is not that big so it cannot compete properly and even if they start to gamestop will just buy them
dammmmmn!!!
Unfortunately, this is indicative of the industry in general at the moment. The HD systems have not made up for the fall of the Wii, and the switch to the 8th generation is slow for handhelds.
