US video game retailer GameStop announced that it recorded sales of $1.95 billion for the third quarter ended October 29, up by about 2.5 percent from $1.9 billion in the same period a year ago. The company reported that profits were down ever so slightly from $54.7 million to $53.9 million, which it blamed on lower sales of new software.
The good news for the company is that its digital sales were up by an estimated 59 percent, with console digital sales growing 63 percent and PC digital sales up 51 percent. Pre-owned game and hardware sales were up 3.1 percent, and new releases were up by 4.8 percent thanks to a few select titles such as Battlefield 3, Madden NFL 12, Batman: Arkham City, and Dead Island.
"In the third quarter, GameStop outperformed the market and continued to execute against the long-term strategic plan through additional investments in digital and emerging businesses," offered Paul Raines, CEO. "We expect that our innovative digital, iDevice and gaming tablet businesses will supplement our leading retail business this holiday."
GameStop said that it has seen a "strong sell-through" of November releases.
Source: GI.biz
Comments
Re: Digital Sales Up, Profits Down for GameStop
As much as I hate digital distribution, this made me smile.
Re: Digital Sales Up, Profits Down for GameStop
I've seen a lot more people trade in games instead of buying new. When people do buy new, they usually trade in a heap of older games to reduce the cost. Also G$ has been eating the cost of the "online pass" DLC on their used games for quite a few titles. MK9, Arkham City, and Gears 3 come to mind off the top of my head as giving away free DLC for the used games. IMHO, that's also why the used prices of those games hasn't dropped much yet.
Treasure bin: Cult Hits, chea pass gaming options, and rants about gaming in general