Gamestop has announced that its 4th quarter sales, which ended December 29, 2012, have dropped for the first time since it merged with Electronics Boutique in 2005. Revenue for the quarter were $2.88 billion, a decrease of 4.6 percent when compared to the holiday period 2011.
"GameStop experienced mixed results during the holiday selling period. Our successful Wii U launch, strong digital growth and continued momentum in the mobile space were countered by a decline in store traffic," said Paul Raines, chief executive officer.
"As a result, GameStop expects its fourth quarter 2012 earnings per share results to be at the low end of its current guidance range," Raines continued. "Our strong market share positions us well for the future, and we look forward to new product launches in 2013."
New hardware sales decreased 2.7 percent, despite the launch of the Wii U, which sold 320,000 units worldwide at the retailer. New video game software dropped 5.1 percent. The biggest decline was from the sale of used games. Used game sales dropped 15.6 percent.
The lone bright spot for the company comes from digital receipt sales, which saw a 40 percent increase in sales. Its mobile business brought in $76.5 million in sales during the holiday period and more than $160 million for the entire year.