GameStop sales tick up as profits slightly sink

Gears of War 3, Battlefield 3, Madden NFL 12, Batman: Arkham City, and Dead Island top retailer's best-sellers list as digital sales surge 59 percent.

GameStop reported quarterly financial results today, revealing slight sales growth as profits suffered a modest decline from the year prior.

"Thank you for calling GameStop, where you can trade in Gears of War 3 just to spite Cliffy B. How can I help you?"

For the three months ended October 29, GameStop revenues totaled $1.95 billion, up 2.5 percent year-over-year. However, net profits were off slightly, down to $53.9 million from $54.7 million for the same quarter last year. The five best-selling titles of the quarter for the retailer were Gears of War 3, Battlefield 3, Madden NFL 12, Batman: Arkham City, and Dead Island.

The retailer's new game sales rose nearly 5 percent to $879.1 million, but its digital sales business showed the most dramatic increase, surging 59 percent. GameStop did not break out the sales figures for its digital business, but the company's "other" sales category (which includes digital) was down roughly 4 percent to $245.6 million. In a postearnings conference call, the shortfall for the catch-all category was blamed on boxed PC game sales, which saw difficult comparisons given the previous year's launches of Sid Meier's Civilization V and Starcraft II: Wings of Liberty.

Looking forward, GameStop expects its fourth fiscal quarter to be bolstered by this month's slate of big new releases, including Call of Duty: Modern Warfare 3 (which has already been confirmed as the biggest North American launch in company history). The retailer also expects the bottom line to be padded by its growing digital business, as well as recent trade-in and sales initiatives for gaming tablets and iOS devices.

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33 comments
Moegitto
Moegitto

But I'm only interested in gaming, not politics. If I can get a great game at a great place legally, then I'm all for it.

Moegitto
Moegitto

Pirating and used game sales are causing the actual game companies to adapt new techniques to help in their selling methods. I was reading an article about the Sony PS Vita last night, and someone mentioned how Sony could actually afford to sell the Vita at a lower price that the $250 for the wifi version. They also mentioned the absurd price for the memory cards. One company makes a specific product, then another company copies that product (Third Party). The parent company doesn't make money off of the third party product. When people started to pirate madden games, EA forced the Online pass to thwart that. Even if you successfully download the game, you can't play it online without buying the pass. EA still makes money off you. That's what happening in the used sales department, the parent company doesn't make any money off of the used games sales, so now they're all trying to implement their own version of the online pass system. And if not a online pass, it's a membership pass with "discounted" DLC.

SadPSPAddict
SadPSPAddict

@TriumphantToad - *sighs* the thing you people fail to realise is that some people buy used games because they can't afford to buy them new. Maybe you are rich but here in the UK some people are having to choose between food and heat some weeks so "spare" cash is very low. Equally people selling their games are doing so - at least some of the time - to fund their next purchase. Therefore video game company profit from used game sale > $0 Personally I buy games I want on release date and never re-sell them. They are all lined up on a bookcase in pride of place but not everyone can do that. By squeezing the second hand market they are ultimately hurting themselves but they are too stupid and too greedy to understand!

TriumphantToad
TriumphantToad

@SadPSPAddict Video game company's profit from pirated game: $0 Video game company's profit from used game sale: $0 This doesn't hurt the industry...how?

siiixon
siiixon

i dont think it would make much of a difference if there would be no pirating, most people who pirate would never buy the game to begin with... i know because im pirating a lot and i know a lot of other people who do... in addition even if every one would not have the option to pirate they would only buy a very small fraction of the games who they normally pirate

Agronot
Agronot

Revenue almost $2 billion dollars and you only clear $54 million after taxes. Wow...what are you spending your money on?

SadPSPAddict
SadPSPAddict

@ArabrockermanX - yeah that's a fair point. But as for pirates vs. second hand, well one is illegal and one isn't for a start and I still maintain that the second hand market doesn't hurt the gaming industry at all in reality.

ArabrockermanX
ArabrockermanX

@SadPSPAddict So can you not buy another used game with that store credit? How about a controller? Or one of the many other store items GS offers... Also how is used gaming less damaging than pirates? Look at the volume of people willing to participate in the used gaming market compared to pirating... Also I agree if developers would start dropping the price of games 3 months or so after release it would slow down used gaming big time and the people who want to buy the game early will still do so... Personally I wait for the version with all the DLC included to come out before buying some games.

SadPSPAddict
SadPSPAddict

@ArabrockermanX - pirates are the most damaging to the industry period!

SadPSPAddict
SadPSPAddict

@ArabrockermanX - well as far as used games at GameStop are concerned it will be since they offer better prices for store credit than cash. So almost all used game sales at GameStop will have put money back in developers pockets with the sellers buying something else. Ebay and the like is obviously less clear cut and often people are selling because they need to fix their car or similar. And why shouldn't they? The best way to kill the second hand market and increase new game sales would be to knock 25% off prices - BUT developers are far too greedy to do that so second hand prevails! Personally I buy new on release day for 90% of my games but not everyone can afford that!

ArabrockermanX
ArabrockermanX

@garland51 But it is more damaging than pirates just for the simple fact that their are many more people willing to join in used gaming because of it being legal. Honestly I dont care for their profits Im just saying people who attack those that pirate games need to look in the mirror some time. If they earned my loot I will give it to them if not I wont its as simple as that.

Shinobi120
Shinobi120

@ArabrockermanX: Used games =/= Piracy. Also, do you honestly think that all the money goes to developers for those who buy games brand new? Publishers/Developers already get money by shipping out copies, etc. Those publishers/developers don't care about you; just your loot. Why are you defending them?

MoreThot
MoreThot

Not bad for digital sales competing with the digital power house steam along with other digital sites.

daub11
daub11

all i can say is that G.O.W 3 couldn't be the most sweetest game that the xbox team has ever made. cause i'm still hoping to get the game and just play the hell out of it. because that is what i DO.

D3dr0_0
D3dr0_0

Selling used games has been there since the industry started and it's still alive after all these years.

steveguttenberg
steveguttenberg

Game companies should really decide whether Gamestop is their friend or enemy. If some publishers hate Gamestop so much, why do they continue doing business with them?

wsst
wsst

[This message was deleted at the request of a moderator or administrator]

ArabrockermanX
ArabrockermanX

@garland51 yes since games sold that a developer will never receive a cent for isn't hurting their profits... Used games are effectively legal pirates and although I do feel it should stay that way but it would be nice for used gaming to go back to being less mainstream. Also for the stupid argument of used game cash = cash down on new games no it doesn't people sell their games for many reasons just because you or some one else sells them to buy new doesn't mean every one does(or even a majority).

s4dn3s5
s4dn3s5

hey look, it's the guys who think that an open game is still a new game...

Shinobi120
Shinobi120

@ArabrockermanX: Are you kidding me? Without the used gaming market, do you honestly think that the gaming division would still be around here today? I don't think so. Used games are not causing harm to the gaming industry whatsoever. If anything else, it's DD, DLC, Online/Season passes, etc. that are. Developers aren't exactly suffering.

dylan35
dylan35

used sales @ gamestop = money down on new game sales !!! so it self perpetuates the industry !!!what is killing the industry is overpriced DLC and of course C>O>D!!!! evil (activision)!!!!!

beny_pimpster
beny_pimpster

gamespot wares is expensive ( its expected because how much do you think their clerks earn per hour over $10) and how much do they buy used games and sell em?? the difference is high i tell ya!

MJ12-Conspiracy
MJ12-Conspiracy

@ManiacKawaii How is Gamestop evil? Wal Mart is evil, Microsoft is evil, the freaking government is evil.... You going to say that just because they sell used games Gamestop is evil? Grow up, the used games market has been around since gaming began....maybe a little after. Before I ever heard of Gamestop I used to buy used games from the pawn shops or I'd trade with them...... Used games are only evil now because a bunch of greedy publishers who pump out crap every year said it was evil....

HisstKa
HisstKa

If it wasn't for used games, I would not have tried out some game series that later led me to purchase sequels when they were new or bought DLC for those used games. Used games don't kill the industry. Used games are an alternative and sometimes lead to purchases of new games. If Gamestop were not around, the used games would be sold on ebay.

ArabrockermanX
ArabrockermanX

I hope all the people here that complain about piracy realize how much more damaging used games are to the industry...

Ni6htSorrow
Ni6htSorrow

I'm wondering, why would game publishers won't make a deal with GameStop to have a cut of the used-game sales instead of punishing us gamers with all of these new games initiatives that caused more harm to us than benefits (Online Pass).

Ronnie_Rim
Ronnie_Rim

PC games at Gamestop are a joke. I remember when PC had one of the largest shelves in the whole store! At my Gamestop, we don't even get a proper shelf, just a little rack in the centre of the store. I have lost all hope in Gamestop, and will be sticking to Steam for my games.

uchiha69baka
uchiha69baka

What would be the UK equivalant to Gamestop? Gamestation or Game?

B4NTH4F0DD3R
B4NTH4F0DD3R

if you're going to trade in games, do it at BEST BUY!!!!!!!!!! Seriously, do it. I traded in 6 games last night and got 125$. Not only that, I preordered Max Payne 3 and received 50% more trade in-value. I walked away with a $187.50 gift card. Everyone knows that Gamestop makes a majority of their money from used game sales. My hope is that if enough people start trading in elsewhere, they'll be forced to lower their prices and/or actually give people decent money for trade-ins.