GameStop holiday sales sink

Decline in store traffic results in sales for nine-week period dropping 4.6 percent to $2.88 billion; preowned category dives 15.6 percent; digital receipts jump 40 percent.

GameStop did not have a happy holiday. The specialty retailer today announced sales results for the nine-week holiday period ended December 29, revealing global sales were down 4.6 percent year-over-year to $2.88 billion. Last year, GameStop took in $3.02 billion during the period.

Total comparable store sales dropped 4.4 percent, with United States shops falling 3.5 percent and international outfits taking a heavier 6.4 percent hit year-on-year. Based on these holiday sales results, GameStop downgraded its comparable store sales range for the fourth quarter to -7.0 percent to -4.0 percent and the full year to -9.0 percent to -7.5 percent.

“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,” GameStop CEO Paul Raines said in a statement. “As a result, GameStop expects its fourth quarter 2012 earnings per share results to be at the low end of its current guidance range. Our strong market share positions us well for the future, and we look forward to new product launches in 2013.”

New hardware sales for the holiday period dropped 2.7 percent, which included 320,000 Wii U units sold worldwide. New game software also took a hit, falling 5.1 percent due to major games not be able to offset a decline in overall store traffic.

GameStop's preowned category--one of its pillar businesses--dove the furthest during the period, tanking 15.6 percent. The company attributed this downturn to limited inventory due to fewer new titles released in 2012 as well as less promotional activity compared to last year.

It wasn't all bad news for GameStop during the holiday period. Digital receipts jumped more than 40 percent and mobile business sales hit $76.5 million and have exceeded $160 million year-to-date. Further, GameStop's global e-commerce sales rose 20.5 percent.

Investors reacted to the news negatively, as GameStop shares traded down sharply today. As of press time, the company's stock was going for $23.14, down nearly 7 percent.

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Discussion

116 comments
DukeCoudray
DukeCoudray

Gamestop is going to go under the way they treat people. I just recently stopped shopping there. Has a guy working there that wont shut up. If you dont buy his selling suggestions, he puts you down saying the game your about to buy is crap anyway, and how i should be buying Generic FPS with Franchise name, because it does great. I even mentioned i went to see Django Unchained, and he says how Quintin Tarantino is a big piece of spit. Way to hire the right people. Scum bags. Just give me my damn game.

TheBatFreak777
TheBatFreak777

I still can't figure out why people even go to Gamestop.  ???  Seriously, at every level they demonstrate that they don't care about their customers so why do people go there?  Is it just the joy of being in a store with every title right in front of you?  Is that worth getting screwed whether you're buying or selling?  Don't get me wrong, I loved me some used games but I'd never waste a minute going in Gamestop except to laugh at how much a better deal I get elsewhere.

bfine20
bfine20

I refuse to go to Gamestop anymore. Just this past weekend I was looking to get Dance Central  3 on XBox 360 for my niece and the big blue/yellow box store was selling it for 29.99 but was out of stock. I called Gamestop, who was selling it for 49.99, and asked if they would price match and the guy was very adamant that they DO NOT PRICE MATCH! Seriously!?!?! How are you going to sell a game for almost double what everyone else is selling it for and refuse to price match. Not only that, but they were selling the USED game for 39.99. A USED GAME FOR MORE THAN A BRAND NEW-IN-BOX from a competitor who happened to be located right across the street!! I ended up driving to another BB to get the game, but unfortunately that BB was out of the Kinect Zoom, which I was also interested in. Of course, there just HAPPENED to be a Gamestop right nearby that BB too...so reluctantly I went in and asked if they had the Nyco Zoom for Kinect. The sales guy had no idea what I was talking about. I ended up finding it on my own, and...NO SHOCKER HERE....it was 10.00 more expensive than BB or Walmart. Again I asked if they would match the price on peripherals, but again was told no. What a joke, I'm glad people aren't wasting their money on this place as much.

franzito
franzito

Highs and lows are part of the biz

g1rldraco7
g1rldraco7

I like buying my video games on discs thank you, going digital leads to more identity thefts and account hacks and credit cards frauds. I love GameStop :P

Fursnake
Fursnake

Scene: Interior, Gamestop board meeting room

Gamestop executives sit around crying tears that look like dollar signs while using money to wipe away those tears. Sad violin music plays softy in the background.

maniaxe613
maniaxe613

I would rather buy my games from a store than have it digital.  Digital sucks!  You have to download a game which uses up a ton of bandwidth and it takes up space on your hard drive!  Unlike a store-bought game on disc where you just put in the disc and play without worrying about downloading or hard drive space (unless it's a PC game).

commanderxp90
commanderxp90

There are a few Gamestop stores to be bankrupt in my location. :[  That's pretty sucked.

IndridCipher
IndridCipher

Good news indeed, the pre-owned sales especially.  The faster the pre-owned market is destroyed the better in my opinion. 

megakick
megakick

why sale to GameStop. Sell it to Bestbuy and you can get more then video games with your credit.

XspidervenomX
XspidervenomX

They offered the least and charged the most.....

Shenmue_Jehuty
Shenmue_Jehuty

All those digital sales speak a lot about the changes occurring in the industry. Can't say I like it, but it's a sign of the times.

LindBergh2007
LindBergh2007

The day that Gamestop files for Chapter 11 is the day I'll actually give two monkeys about them.

Mattius04
Mattius04

I no longer do business with them.  A bunch of punks work there and they rip you off on used games.  $2 less than new with a whiny loser trying to sell it to you.  No thanks!

stziggy
stziggy

Steam ate all my gaming dollars this holiday.  It was far, far cheaper.  

Gamestop offers NO bang for your buck.  

chicknfeet
chicknfeet moderator

I'm surprised Amazon hasn't squeezed them out of business yet

cantor2537
cantor2537

Why would I buy a used game from gamestop when they only discount it like 5 bucks? They're good for finding old games that nobody sells anymore, but to buy a used game that is 5 bucks cheaper and then have to pay another 5-7 bucks for their "disk protection plan" makes it an unworthy investment. Why not just buy new in the first place as I take care of my disks and they never get scratched. Gamestop is stupid and I will never buy used from them.

Sevenizz
Sevenizz

I'm confused.  Why does GS have a digital forecast?  What's the point of DLing anything from them instead of going to the source?  Isn't a major point of online sales to nix the middleman?

Zloth2
Zloth2

Digital sales go up 40% - and that's with one of the weaker players in that market.  The times, they are a'changin'.

X-RS
X-RS

Well MAYBE if they didn't make it so you HAVE to go in day 1 to get your pre-order bonus theyd see some profit.

I stopped pre-ordering entirely since apparently they cant set aside my game and a dlc token. I mean there will NEVER be a shortage of these AAA tittles at launch, so wtf pre order and HAVE to pick up day one, when you probly pre order since you CANT.

Their practices have hit all time retarded imo.

debryson
debryson

My ONLY beef with Gamestop is their god-awful prices. They still sell used games that are 4 yrs old for like $20, $25. Thats crazy! They are selling used copies of RE5 for $20-$22, thats the price for a brand new Gold edition with all DLC. Or Spider-man 3 for almost $30 (I was trying to clean up some achievements), what??? Amazon is going to put them out of business for one reason, their ridiculous prices.

666_Laventine
666_Laventine

I got nothing against gamestop, but what did ya expect? They didn't have the buy 2 get 1 free deal for pre-owned games that holiday season.

venomnight
venomnight

I hate Gamestop as well as Sears and K-Mart. They need to go bye bye. I use Amazon for all my gameing need or Steam.

fredwv
fredwv

how is this shocking?  You don't give a kid a pre-owned game for xmas, unless you're one hell of a redneck.

PixelAddict
PixelAddict

The longer this gen lasts, the lower hardware prices will drop, drop, drop... and the greater the number of titles will be available at much lower-than-launch prices.

 

So this really isn't all that surprising, is it?

Meta-Gnostic
Meta-Gnostic

Basically, online passes and various dlc and preorder bonuses with NEW games COMBINED with Best Buy copying Gamestop, have taken a huge hit out of Gamestop's USED games. 

Kyrylo
Kyrylo

Same article appears every year, lol 

Roger_Smith
Roger_Smith

Oh no! Gamestop's sales dropped to.....2 BILLION? NOOOOOOOOOOOOOO ;_;

jenovaschilld
jenovaschilld

Gamestop isn't evil -

yes they have employees with little knowledge of the product, yes they can be rude (young kids wishing they were home gaming then working), yes that preorder and fill out online survey is a pain, availability issues, and low buy of used games with high sale of a used game. 

 

But they do alot of other great stuff also. 

 

Their selection is huge in most stores, go in the morning while your oil is being changed, you will see stuff you didn't know even existed. Saiyuki journey west, la pucelle tactics, shadow hearts covenant, etc. all really cheap. Yes maybe find online, but there is something about holding that box, looking at the art, etc. 

 

Need an odd ball item, strange game, accessory - they can look it up and you can review it in your hands without having to wait for shipping. If another store has it, they will ship it to yours without you having to pay - to see it before you buy. 

 

Sometimes they might know a game or item you do not, I run in and debate, argue games with the employees who many have become friends. Sometimes they let me know when a rare mint game comes in that i can buy used - (like new, good, very good- are really variable on ebay. 

 

I buy a few old consoles a year as gifts- they have no problem letting me open the box right there and inspect the machine, controller etc before i leave. I also inspect the discs before I leave also. I have went through 3-4 before i leave. 

 

Swag- Ask them if they have any free swag. Alot of times they may have a t-shirt, calendar, magazines or strategy guides with a cover torn, cords, and yes I do have a 4ft poster stand of Lightning from ff13 on my garage wall. 

 

They give jobs to local young people who only knowledge base is gaming- pretty much wouldn't wanting them to work anywhere else. We are getting more back from our B&O taxes from gamestop then Walmarts or Targets. 

 

I shopped at gamestop when they used to be babbages. I was not a gamer and really couldn't care less. A doctor I worked with in the ER gave me a playstation in 97' (which he said he paid like 600$ and his little girl never played with it) So after a month, went to babbages and ask the clerk for a couple of fighting games like street fighter, and a racing or sports game. He said hey 'a new game came out last week called FFVII, wanna try it - I told him not into story/ fantasy games he said try it - oh and he threw in Suikoden !! - since i bought alot he threw in a few shirts and demos. 

Did not like anything i choose, bored i put in that 1rst RPG.

Well 3 months went by, I called in sick to work a bunch of times, broke up with my girlfriend and played FF7 nonstop. from then on I was a gamer.

 

So for me gamestop has not been all bad.  

underoath83
underoath83

@g1rldraco7  Well you do that. I'll continue to find ridiculously good deals on digital downloads and avoid paying $54.99 for a used game lol...Oh, and enjoy continuing to get fleeced on trade-ins as well. 

jenovaschilld
jenovaschilld

@cantor2537 What the hell is a disc protection plan? 

When they start that. 

If I get home and the game doesn't play I call em, they have a replacement ready for me next time I go there. Plus I always check the disc before leaving the counter.

soulless4now
soulless4now

@venomnight I'm not the biggest fan of GS either, but when it came to used games for the ps2 era, they were a goldmine. Nowadays, I prefer Amazon as well for all my gaming needs. They drop prices quicker compared to other retailers. 

Dirk_McHardpeck
Dirk_McHardpeck

@fredwv Not everyone can afford new games. Some people buy used games because it's the best they can do for their kids.

jenovaschilld
jenovaschilld

 @fredwv you think a 6-13 year old know the difference between, new and old, they see game - they scream - day later they break it. 

Strangely the above applys to nintendo fans boys as well. 

5 and under though are extremely persnickety. 

PixelAddict
PixelAddict

...seeing as though these figures are based on revenue, that is.

megakick
megakick

@Roger_Smith Apparently the Company is still doing well enough to fund GameStop Kids. I guess negative 2 Billion dollars is nothing or GameStop is STUPID.

megakick
megakick

@Dirk_McHardpeck @fredwv LOL you can't afford new games and Publishers can't afford you cheap. How many  games your going to buy when publishers go bankrupt? Looks like you need games more then games need you.

Can't afford so don't buy it. Used games is stealing money from publishers stop being a freeloader.

venomnight
venomnight

@jenovaschilld @fredwv Had to get my son some used games that were old and could not find new. He was happy he got the game did not even realize it was used

jenovaschilld
jenovaschilld

 @vault-boy that was kinda mean, I wont cry. not since Aerith death scene you cannot make me cry. sniffle

LitninJakFlsh77
LitninJakFlsh77

@Dirk_McHardpeck @megakick @fredwv Buying used in the automobile industry is different. Due to the fact that the vehicle purchased is actually your property. The vehicle is literally made for you, just like a home you purchase. You are actually paying the ones who made the car or home directly. And it is usually a substantial amount for the product, and usually way above what it cost to make it, sometimes double in most cases. So these things literally belong to you, it is only the concept of the car that belongs to the auto maker, you purchased the fiberglass, the paint, the battery, motor, etc., so you are only actually getting in fact what you literally paid for.

With media, its different. The developers & publishers own the ip on the media you purchased. It is there property, you purchased the disc only. Your purchase helps further the development of the game they made, but you didn't actually buy the ip from them. You only purchase the media the ip is on. And unlike a car or home that you pay for over time in full and resale at your leisure becuz it now belongs to you, the ip on the media disc doesn't belong to you. When people buy a used game, it lessens the amount of money the developer will recoup to balance the amount they spent on developing. Unlike an automobile, once its purchased it belongs to the individual, and they are free to do with it as they please, because they have literally paid for its construction and then some. We don't pay for the ip developed, we only pay a small amount to play it, or use it for a time.

Dirk_McHardpeck
Dirk_McHardpeck

@megakick @Dirk_McHardpeck @fredwv What's this "you" stuff? I didn't say it related to me. Learn some reading comprehension skills before you go around slinging insults like "freeloader" at people. And while you're at it buy a dictionary too. The word "freeloader" means your getting something for free. If you're paying for it, even if it's used, then that kinda negates the possibility of being a freeloader. Jesus christ man, the word "free" is in the word fer crying out loud. How can you not understand it's meaning? And if buying used is stealing then explain the automobile industry?

Zloth2
Zloth2

@jenovaschilld @vault-boy That was nothing compared to Floyd's death in Planetfall when I had to.... when they MADE me... when... OH GOD FLOYD I'M SO SORRY!!!