Digital Sales Up, Profits Down for GameStop

November 17, 2011 -

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

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Comments

Re: Digital Sales Up, Profits Down for GameStop

Submitted by Skillz817 on Mon, 11/21/2011 - 13:57.

As much as I hate digital distribution, this made me smile.

Re: Digital Sales Up, Profits Down for GameStop

Submitted by ddrfr33k on Thu, 11/17/2011 - 16:53.

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.

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Neo_DrKefka: That is correct in an At-Will state you or the employer can part ways at any time. However Florida also has laws on the books about "Wrongful combinations against workers" http://www.flsenate.gov/Laws/Statutes/2012/448.04510/20/2014 - 10:07am

james_fudge: he'd die if he couldn't talk about Wii U :)10/20/2014 - 9:16am

Michael Chandra: By the way, I am not saying Andrew should stop talking about Wii-U. I find it quite nice. :)10/20/2014 - 8:53am

Michael Chandra: 'How dare he ignore my wishes and my advice! I am his boss! I could have ordered him but I should be able to say it's advice rather than ordering him directly!'10/20/2014 - 8:52am

Michael Chandra: If GP goes "EZK, do not talk about X publicly for a week, we're preparing a big article on it" and he still tweets about X, they'd have a legitimate reason to be pissed.10/20/2014 - 8:52am

Michael Chandra: If GP tells Andrew "we'd kinda prefer it if you stopped talking about Wii-U for 1 week" and he'd tweet about it anyway, firing him for it would be idiotic.10/20/2014 - 8:51am

Michael Chandra: Legal right, sure. But that doesn't make it any less pathetic of an excuse.10/20/2014 - 8:50am

ZippyDSMlee: You mean right to fire states.10/20/2014 - 8:50am

james_fudge: some states have "at will" employee laws10/20/2014 - 7:50am

quiknkold: It says in the article that being in florida, you can get fired regardless if its a fireable offence10/20/2014 - 7:19am

Michael Chandra: If your employee respectfully disagrees with your advice, that's not a fireable offense. If they ignore your order, THEN you have the right to be pissed.10/20/2014 - 6:49am

Michael Chandra: I... Don't get one thing. If you do not want your employee to do X, why do you tell them it's advice or a wish? Give them a damn order.10/20/2014 - 6:48am

james_fudge: A leak that had me worried about being swatted by Lizard Squad.10/20/2014 - 6:03am

james_fudge: It should be noted that the author leaked the GJP group names online10/20/2014 - 6:03am

MechaTama31: I mean, of the groups being bullied here, which of the two would you refer to collectively as "nerds"?10/19/2014 - 11:30pm

MechaTama31: But that's the thing, it doesn't sound to me like he is advocating bullying, it sounds like he is accusing the SJWs of bullying the "nerds", who I can only assume refers to the GGers.10/19/2014 - 11:21pm

Andrew Eisen: Interesting read. Unfortunately, too vague to form an opinion on but at least now I know what faefrost was talking about in James' editorial.10/19/2014 - 10:39pm

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