GameStop digital sales up, profits down

US retailer sees digital, mobile revenues rise, but not enough to offset dipping total sales and profit; Guild Wars 2 won't ship until after July.

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GameStop's mobile and digital businesses are growing, but not enough to make up for a shrinking market for packaged games, the company revealed today as part of its latest financial report.

Digital and mobile sales were bright spots on GameStop's spreadsheet.

The company did not provide a specific figure for digital sales, but noted this sector was up 23 percent year-over year, while mobile raked in $12 million for the period.

In all, for the three months ended April 28, GameStop posted total global sales of $2 billion, down 12.2 percent from the $2.28 billion recorded during the same time last year. Net income for the period hit $72.5 million, a dip from the $80.4 million notched a year ago.

New game software was the biggest contributor to GameStop's bottom line during the period, accounting for $731.1 million and 36.5 percent of total sales. The next most significant contributor was used software and hardware sales, which accounted for 30.9 percent of total revenue, or $619 million. New game hardware sales for the period hit $348.6 million, and made up 17.4 percent of total revenue. GameStop's "other" category, which houses its digital and mobile businesses, accounted for the smallest piece of the pie, representing 15.2 percent of total sales with a haul of $303.5 million.

Looking to its current fiscal quarter, GameStop said it expects store sales to fall 11 percent to 5 percent, with full-year revenue expected to range from down 5 percent to flat. Additionally, in a postearnings financial call, CFO Robert Lloyd revealed that ArenaNet's long-awaited massively multiplayer online role-playing game Guild Wars 2 has slipped out of the company's current quarter, meaning it is now expected to arrive sometime after July.

Discussion

144 comments
nyran125
nyran125

STEAM is the only place i buy games off now. Like i wont even buy BF3 unless its on STEAM. So i guess im enjoying saving my money. Thx STEAM.

destrozz
destrozz

Gamestop is just awful. They make a killing off of parents that don't know any better, and kids that see all the wonderful lights.

Wolfewood83
Wolfewood83

GameStop has partnered with Steam. That's why they sell steam cards now.

jamyskis
jamyskis

I'm not sure about how Gamestop is in the US, but it sounds like it has a lot of the same problems as it does here in Germany. Gamestop simply makes absolutely no effort to compete. They keep spamming customers with emails begging them to trade in recent games that are going for $60 for a pittance, charge well over the going price for recent titles, and even charge more for used games than they cost new on sites like Amazon.

 

Is it any wonder their physical media sales are crap?

bassinine
bassinine

i was literally just writing "steam > gamestop digital," then i looked down.

Tlmader
Tlmader

Steam > GameStop. Nuf' said.

RiP_ili
RiP_ili

I think I've been to GameStop twice, ever. Once for an online game card I couldn't find anywhere else. And once to browse for a new game that I later got for $10 cheaper elsewhere.

zzamaro
zzamaro

way too many GS haters here

deadmonkey76
deadmonkey76

I was ran out of gamestop because im a jerk and I sent business that they could have had to a local gamestore in my area that actualy sells games used even recently released games 20 bucks cheaper to say the least they were pissed oh well game stop screwed me and a few of my friends out of an xbox 360 launch day when I was one of the first 30 people to reserve one and they and there buddys got there systems first and me and several others were told we had to wait for the next shipment screw gamestop I will always send people else where when there are better deals to be had

jspeedy26
jspeedy26

profits  are down because us consumers are sick of getting ripped off from gamestop. i for one am done buying games from them. i took my business else where Gamefly is alot better deal for me.and more affordable . theses days every cent counts. F you gamestop!!!

TaranIsAllUpIns
TaranIsAllUpIns

If you buy a new game from GameStop and it isn't sealed, chances are one or more of the employees have checked it out.  It's one of the perks of working there, being able to check out any game you want, new or used.  The "new" copy that has already been opened, taken home, touched, and played is not even given a 10% shopworn discount.  It's a screw to the customer for sure.  Why pay the full $60 for what is now a USED game?  Oh, and space in the back of the stores is usually so limited that they have to keep systems in the bathroom.

Landsharkk
Landsharkk

I don't quite understand all of the hate towards Gamestop. I buy almost all of my use games from them.  I also always compare prices prior to going to Gamestop.  What's so bad about them?  

 

I sometimes see people complain how they don't give very much money for trading in old games, but that's not much of a complaint if people are willing to accept the trade-in value.  

 

For me, I've almost always saved money or came out even shopping at Gamestop when compared to other stores, and I do extensive price-checking.  

stziggy
stziggy

I'm pleased to see Gamestop suffer.  The methods they use to sell games and systems is morally bankrupt. 

 

People are getting smarter to their tactics and taking their business elsewhere.

Uchiha_Sasuke1
Uchiha_Sasuke1

10-5% is big change right? Is gamestop having problem selling games, and why are they planning on axing the used game policy.  I though selling used games helps gamestop and us buyers together.

DeFiLeDTitan
DeFiLeDTitan

Walmart strikes again! I usually get my games new, or at least unopened, so I usually just get them from major stores, like Walmart or Target while I'm shopping. No reason to go an extra place if I can get it there 

Therimight
Therimight

while steam and digital distribution in general are great, don't get me wrong, I will always love seeing one shelf of my bookcase filled with the epic titles of amazing games. not really sure why, but it never gets old.

sk8oridie44
sk8oridie44

I don't think digital copies are the threat here.

 

Many gamers I know of, including me, buy new and used games via internet. Ebay has been the best place for me to buy cheap games and great deals for new games on Amazon as well.

 

I think Ebay and Amazon are the real competitors to Gamestop and not digital downloads.

hunter8man
hunter8man

I really wish Gamestop would start renting games. The option to rent isn't as available as it used to be.

XanderZane
XanderZane

i still get some games from Gamestop, but I buy at least 75% of my games off of EBay, Amazon or on sale from Fry's Electronics. I rarely pay full price for a game, unless I think it's really worth it.

Snaptrap
Snaptrap

I'll be glad when Gamestop becomes the next Block Buster.

Mayleene
Mayleene

At what point do companies not realize that there may be an end to making more than the previous quarter/month/year.  Sheez!  Greed, Greed and MORE greed!

Vastano
Vastano

Every since GAME UK closed down it's store near me (and never reopened it) I've been using GameStop UK's online store. And glad now, because I pay American prices (£35/$60 on average) as opposed to the UKs prices (£45/$70 on average)

Psycold
Psycold

I buy 95% of my games on STEAM, if there is a collectors edition I can't get on STEAM, then I buy using Amazon Prime to get free release date delivery. 

OU_Munky
OU_Munky

perhaps because most of the "gamer" community detests a lot of Gamestop's practices and with the abundance of alternative outlets to buy from...people are voting with their wallets.  Any of my "gamer" friends flat out refuse to do business with them, even if they are the only ones with the item in stock at the time...they will wait for best buy to get it.

hyper_trunkx
hyper_trunkx

screw gamestop anyway. amazon and ebay are the way to go.

Wula_
Wula_

CEO: "Oh noes guys we overprice our used sales and aspect consumers to buy a destroyed case and sometimes damaged disc to save $5 over buying it new! What should we ever do?" 

Employee: "But boss we are still making a profit either way!"

CEO: "But I want to buy my summer home on a private island this month! not in another two when summer is almost over."

Max42
Max42

problem is their used prices are still way to high for some stuff they would have better odds if they lowered some prices -after all they barely pay anything for trade in games.  i can get a better price by ebaying it

BladeStrike1234
BladeStrike1234

I buy most of my games from Steam now. They have great sales and its simple to use. I get my console stuff from HMV also. Better prices than our Gamestop :) Eventually we will be downloading all our console games too. Its inevitable for game stores to go under. Its not that I want that to happen, but it will.

sieg6529
sieg6529

Glad I dumped my stock already.  Made a cozy little profit, but this company's days have been numbered for a long time now.  

SadPSPAddict
SadPSPAddict

Shop around is the way to go I guess. Gamestop, like Game here in the UK is expensive but convenient for over the counter purchases 

Setsuka13
Setsuka13

I just go wherever is cheapest/best deal. I like that Amazon, GameStop, and Best Buy are around. More competition means better deals for all.

jbonczyk
jbonczyk

 @zzamaro main issue i have with gamestop is used game sales.  absolutely nothing of that sale goes back to the dev. its strictly profit for the store.  this wont hurt games like COD or Diablo, but its because those franchises are guaranteed to sell millions of copies.  for games like torchlight, where each individual sale really counts.. used game sales can certainly make a dent.

 

Animatronic64
Animatronic64

 @TaranIsAllUpIns 

 

GameStop really are a bunch of greedy b*tches that rip people off on a constant basis. I bought a used game from them once (Saint's Row 2, I believe) - it came with a tiny scratch on it, but the game worked perfectly fine. Anyway, about a month later, I was going to trade it in, along side a few other crappy games I didn't like, and I couldn't believe what happened next. They wouldn't f*cking accept the game because it had a scratch on it. So, I argued with them for about 5 minutes, explaining to them how they sold me it in that condition about a month ago. In the end, I got them to take it off my hands, but they charged me with a refurbishment fee, so I got less money off it than I normally would. That was pretty much the last straw for me. Prior to that, they sold me a copy of Uncharted 2 that had dust and finger prints on the disc (as well as shelf ware on the disc) as a NEW copy. Seriously. What the hell is wrong with GameStop. There was NOTHING new about that copy of Uncharted 2.

 

I long to see the day when GameStop goes bankrupt.

Quivox
Quivox

 @Landsharkk Gamestop is good for really old games, that no one likes. Unfortunately, it reminds me of books. Like the price of an item really has nothing to do with the quality of it, it's sad games have become like this. It's just how popular it is, like Virtua Fighter 4 Evolution on PS2 is on sale for 99 cents. While it's probably a good albeit unpopular game. 

deadmonkey76
deadmonkey76

 @Landsharkk ebay is way cheaper and more than likely if you found a ma and pa local game store they most of the time give way better deals only time I buy games from gamestop is if it is a bargan bin game for 10 or less because thats the only real good deals charging 54 bucks for game already opened and played is a rip off now considering they only paid maybe 10 bucks or less  to the poor sap who sold or traded it check harder for used games because your being burnt also check craigslist

fightingfish18
fightingfish18

 @stziggy Morally bankrupt?  No one is forcing you to sell to Gamestop or buy from them.  They're just conducting business.  Nothing will change as long as people continue to spend money there.  The fact that Gamestop charges what they want to charge doesn't make them "morally bankrupt."

 

Well it would if you were a Socialist I suppose...

stziggy
stziggy

 @DeFiLeDTitan Walmart also does swarm over me the moment I walk in the door.  Walmart doesn't try to ram more products down my throat while I shop or checkout.  Walmart doesn't try to milk every last dollar out of grandparents that don't know any better.

mysticstryk
mysticstryk

 @hunter8man 

They kinda do.  If you get a used game, you can take it back within 7 days for a full refund if you say you don't like it.

Landsharkk
Landsharkk

 @XanderZane 

 

I buy most of my used games from Gamestop. However, when I'm buying a new game it's almost always from Amazon, BestBuy or one of the large online retailers.  Most of my games are bought used.  

nate1222
nate1222

 @XanderZane

 Yeah, I hear ya'. I buy off of Amazon for my DS and GBA favs. I hit up GOG, Gamersgate and (occassionally) Amazon for my PC downloads. Steam is still an option, but rarely.

mysticstryk
mysticstryk

 @Snaptrap 

Nice.  So you want thousands of people to lose their jobs.  What's wrong with you?

nate1222
nate1222

 @Psycold

 My old roommate used to do that quite a bit. He got Deus Ex HR that way.

Petnos
Petnos

 @SadPSPAddict

 Agreed. Game/Gamestop often has a much more flexible stock, but they aways seem to charge an extra 8-15£ for it. Oftentimes I'll only go there to preorder or get hard to find games, and go to HMV first.

sortajan
sortajan

 @Setsuka13 In between Amazon and Steam I'm surprised any games cost more than $10. Those Steam sales are brutal. I can't wait for the summer sale.

Quivox
Quivox

 @Animatronic64 I bought Armored Core 4 from gamestop used once, there wasn't a scar or anything, but the disc was in bad shape. The game though always locked at around the third mission. Thankfully, I told them it was broken and they took it back. It was odd problem with the disc, one that didn't show until a certain part of the game. This is why when I buy a used game I make sure to play it right away to check for problems. 

 

Gamestops used game prices are border-line criminal, I mean 54.99 for a used game. What? 

deadmonkey76
deadmonkey76

 @mysticstryk I dont like to see people loss there job but if it gets rid of crooked business then so be it there are other jobs that actually pay much better that would be like working at mc ds a dead end job

Snaptrap
Snaptrap

 @mysticstryk You can't hold back advancements just so people keep their jobs. Besides, the people from Blockbuster are probably working at Netflix. There's always something new to replace something old.

nate1222
nate1222

 @mysticstryk  @Snaptrap

 Agreed. As ticked as I've often gotten with Gamestop, they keep people employeed. I still occassionally buy DS and GBA games from them.

 

But I'm mostly an Amazon person these days. And GOG, Gamersgate and (occassionally) Amazon and Steam are my PC download sources.