GameStop sales surge after GTA5

Retailer reports global sales climb to $2.11 billion for latest quarter; new software sales surge 43 percent driven by Rockstar's open-world game.

by

The record-breaking launch of Grand Theft Auto V in September boosted GameStop's bottom line substantially, the retailer announced today as part of its latest financial report for the company's third quarter ended November 2.

Sales of new software rose 43.1 percent to $1.1 billion driven by the "strong performance" of Grand Theft Auto V, GameStop said. Specific unit sales figures were not provided, though Take-Two previously announced that the game has shipped 29 million units to date. New hardware sales rose 15.3 percent to $213 million, led by "strong" sell-through of the Nintendo 2DS and 3DS.

PlayStation 4 and Xbox One hardware sales will be included in GameStop's next quarterly report.

Not all categories showed year-over-year growth. Total preowned sales fell 2 percent to $486.6 million, compared to $496.3 million last year. Meanwhile, GameStop's "other" category, which includes its mobile business, saw sales fall to $305.2 million, down from $321.9 million last year.

Overall, global revenue was $2.11 billion for the quarter, up 18.8 percent year-over-year. Consolidated comparable store sales rose 20.5 percent, above the company's forecasted range. GameStop posted a profit of $68.6 million for the quarter, up from net income of $47.2 million last year.

“Our strong third quarter sales results give us great momentum as we enter the new console cycle,” GameStop CEO Paul Raines said in a statement. “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.”

GameStop will hold an earnings call to discuss results and answer analyst and media questions beginning at 11 a.m. EDT. Check back later for more.

Discussion

5 comments
tightwad34
tightwad34

I think GTAV helped the economy in just about any way it could.

Creed02
Creed02

thats a big achievement, congrats R* as you are my one of fav. company out there.

starcrafthenry
starcrafthenry

"Total preowned sales fell 2 percent to $486.6 million, compared to $496.3 million last year."

I wonder how big of an effect websites like craigslist have had on gamestop's used games market. If there's a game I want to buy used, I always check craigslist first. I can haggle with people, and I'm definitely willing to pay more for a used game than what gamestop would offer sellers. A used copy of a recent game at gamestop costs $55. They might pay $20-$25 cash if you're lucky. I on the other hand will pay around $40. The seller gets more than gamestop offers, and I pay less than gamestop's crazy price. Win-win, except for the occasional crazy person.

Hurvl
Hurvl

@tightwad34 It's a glorious irony that a game with the word "theft" in its title helps the economy this much. Whatever you say about GTA V, it sure has benefitted the industry by making lots and lots of money.

tightwad34
tightwad34

@Hurvl Yes indeed that is some glorious irony there. I probably never would have thought that if you hadn't mentioned it.