GameStop sales fall as Xbox One, PS4 loom

Retailer reports total global sales for second quarter fell 10.7 percent, though mobile and digital categories on the rise; company "uniquely positioned" for upcoming console transition.

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GameStop today reported sales and earnings for the second quarter ended August 3, revealing overall global sales fell as next-generation consoles the Xbox One and PlayStation 4 loom on the horizon.

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Total global sales for the period hit $1.38 billion, down 10.7 percent from the $1.55 billion recorded this time last year. Comparable store sales also fell 10.7 percent, which was slightly above the guidance announced in May.

GameStop's mobile and digital businesses grew during the period, jumping 121.4 percent to $55.4 million and 17.9 percent to $158 million, respectively. New software sales dropped 9.3 percent, while new hardware sales slumped further, dropping 19.4 percent.

Overall preowned sales at GameStop fell 6 percent "as consumers continue to wait for the launch of the new consoles later this year," the company said.

GameStop posted a profit of 10.5 million during the quarter, compared to net earnings of $21 million a year ago.

"Through two quarters, the year has played out as expected," GameStop CEO Paul Raines said in a statement. "During this console transition period, our financial results have been supported by the continued growth of our emerging businesses. This strength helped drive a 130 basis point improvement in gross margin rate for the second quarter."

"Of course, excitement continues to build for the upcoming new games and the launch of the PS4 and Xbox One," he added. "As the global gaming leader, GameStop is uniquely positioned to capitalize on the new, innovative products coming to market."

Despite the downturn in overall sales, GameStop raised earnings projections for the full year "based on the strong second quarter results as well as positive trends in new console preorders and higher-than-expected launch quantity allocation."

The Xbox One and PlayStation 4 launch in November. Sony has reported more than 1 million preorders for its next-generation console.

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

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Algearond

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I order all my 360 games through Amazon, when I get the X1, it will be through Walmart, then back to Amazon.

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Deathsmiles76

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I prefer best buy for my gaming need screw GameStop. I preordered my xbox one at best buy and being a rewards member and gamer club member I get double points and when you preorder select games you can get 10 dollars back and you save 10% on used games. GameStop gives points when you buy games but those points limit you on what you can buy and it usually end up being junk you don't want.

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geralsmith0286

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we're broke now. **** off!

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Deathsmiles76

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I'm in the poor house

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justerthought

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Obvious really. If everyone is saving for the next gen consoles, they aren't going to be buying many games. The Last Of Us was my last current Gen purchase. I'm even waiting for GTAV on PS4. It's a great time for gamers right now so I'm looking forward to a bright future of massive open world games.

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Megavideogamer

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The new consoles are 3 months away. So everyone is waiting for them. Everyone who wants an Xbox 360 (78 Million) and everyone who wants a Playstation 3 (77 million) have one. So the 8th gen is about to begin. Xbox one Vs PS4 so Gamestops sales would be down for used 7th gen consoles and games. Everyone is waiting hedging their bets, saving their money.

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paebin2s

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Edited By paebin2s

@Megavideogamer Your Xbox 360/PS3 numbers are wrong.

http://www.vgchartz.com/article/251249/2013-year-on-year-sales-and-market-share-update-to-august-10th/



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IanNottinghamX

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You mean Ps4 looms...Xbone doesnt exist

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hyksiu

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Edited By hyksiu

Power to da lack of players

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Garm31

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Edited By Garm31

Of course their sales are falling . Who in their right mind would buy current gen versions of Battlefield 4, Watchdogs or COD? They are waiting for next gen. Gamers eyes and wallets will thank them.

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GuPesci

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Edited By GuPesci

Ebay is where its at for buying and selling

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rtircoklled

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@GuPesci I like Amazon better personally

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RawhideSphinx

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@rtircoklled @GuPesci yes amazon ships to me faster than I can make it to the door.

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Sikrion

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@RawhideSphinx @rtircoklled @GuPesci you know you can search for products by expedient shipping and free shipping as well if you want on ebay.

But I use both i just go where the best pricing is found.

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aces1art

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Edited By aces1art

@RawhideSphinx @rtircoklled @GuPesci Amazon Prime FTW! never bought so many games in my life... and never paid so little too.

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Chai_Tea

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I never do business with Gamestop. It is the pit of hell in the used video games market. They buy back a brand new game from you for $5 to $15 dollars and then sell it back to someone else for nearly full retail. I've always gotten my investment back using a local enthusiast store or other online trade sites.

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rtircoklled

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Edited By rtircoklled

@Chai_Tea Maybe it's just me but the Gamestop close to my house gives good deals and has nice and knowledgeable employees. I don't go very often because I don't buy games from them all the time so idk

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spartanx169x

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@Chai_Tea I don't buy a game unless I plan to keep it.

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Hurvl

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@spartanx169x @Chai_Tea Me too, which for me means that I have one hell of backlog, despite not owning that many games compared to others. Mods and playing old games again after a while really makes time fly while the rest of the world are out there playing/creating new games.

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GuPesci

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@Chai_Tea

its like 28. then they sell it for 49

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GuPesci

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Damn Gamestop!!

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mikemaj82

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Edited By mikemaj82

I don't understand how people can shop at this place. They keep games at full release price forever, and the pre-owned version of the same game is $5 less.

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DrKill09

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Edited By DrKill09

Happens every time. The 32x died because the Saturn was less than a year off.

Microsoft ended the XBox1 because the 360 was out, and new sales would not be good for it anymore.

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excludedkratos

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dont care, to busy anticipating the release gta5.

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UNCStriker88

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That's because used games are going to be done with next gen no matter what console you're getting, we shall rename this company "Gamestop Antiques"

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Camp0potamus

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Edited By Camp0potamus

@UNCStriker88 Yup Sony and MS will integrate some reduced pricing over time much like steam to draw in a higher % of downloaded games vs. physical and then we will end up with CD Keys for everything....kinda where M$ was taking things prior to the bitchfest.

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thekingofirony

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@UNCStriker88 Gamestop should be selling older gen titles.I really miss Game Crazy for that.whenever i try looking for an SNES or Ps1 titles most local stores in my area have little to no selection.

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Deathsmiles76

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GameStop sucks balls I remember going to game crazy and always finding gameś for older systems then GameStop buys them out and everything goes current gen now I have to shop ebay or keep an eye out for ma and pa game stores to get my retro games

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vicsrealms

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@thekingofirony @UNCStriker88 I wish Sony and Nintendo had an option where you could order a copy of those older games. My copies of 7th Saga and Xenogears are starting to show their age.

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thefinalzapkeet

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Couldn't this just be because we're currently in the "summer drought" that happens every year for video games. The only games that came out that I wanted this summer were on Tuesday

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daabulls23

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Stock up another 15%. Dang.

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Vagnar

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"...is uniquely positioned to capitalize on..."

I've been reading this everywhere lately.

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frozenux

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Edited By frozenux

They dodged a bullet for the upcoming console generation.I wonder how they will fare once digital purchases take over in the next one.

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19James89

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@frozenux They'll go under along with most video games retailers.

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SolidIngram

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Luckily for them GTAV is releasing next month.

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cmat35

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I am happy to admit I have never given them a dime :)