Gamestop, the giant video game store of the United States, has plummeted in terms of overall sales and profit in the second quarter compared to Q1 2011 and compared to the same period of 2010, according to a report on GamesIndustry.biz. The company has revealed a drop of 3.1% to $1.74 billion. Slow hardware sales and lack of compelling software titles are cited as reasons for the drop. Quarter profit is at $30.9 million, a drop from $40.3 million from Q1 2011.
However, there is some good news for the store chain. Sales of their digital distribution store have shot up 69%, which was above expectations. Second hands sales also saw an increase, albeit a small one of 12%.
“GameStop’s resilient retail model enabled us to achieve our earnings plan despite a challenging period for the industry,” said Paul Raines, CEO.
“Through the back half of the year, we expect industry software sales to accelerate based on an exciting title line-up. Meanwhile, the digital and loyalty programs we have brought to market continue to gain traction with consumers and position us as a leading partner with publishers.”
I think it’s time for a breakdown. First, the period between Q2 2010 and Q2 2011:
• Profit from second hand software & hardware: $292.4m (46.2%)
• Profit from new software and hardware: $152.8m (29.5%)
• Profit from other, including digital sales: $98m (41.7%)
Below are the second quarter of 2011. These are all in percentages since there are no monetary figures available:
• Used games and hardware sales: 36.3%
• New games sales: 34.4%
• New hardware sales: 15.8%
• Other: 13.5%