Gamestop Overall Sales Drop, Digital Sales Rise

News Deals

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%

Josh is the name, writing is my game... well my degree will say that. But, when uni gets me down (and it does), there is no better way that to grab a chair, sit back and slicing up some Darkspawn I started my gaming interest back in the good old 16 bit era with the Sega Mega Drive and Sonic The Hedgehog 2. I was roughly five years old. To this day I still try to fire up the dusty companion and speed through the wacky and bright levels, jumping on some Badniks, collecting those damn Chaos Emeralds. Then I moved onto Sony's disk based console the Playstation (thanks to my uncle). Since then I have picked up each of Sony's consoles from the 5th to current generation that has been released in Australia (with more to come). In terms of writing about games, I am quite new to the field. I started out late last year with my own blog before deciding to move to greener pastures. I have written a few reviews for the Playstation 3 and Playstation Portable. Features as well. I hope I can flex my muscles while writing with Capsule Computers. If I'm not gaming, however, I'm writing narratives. I am currently trying to kickstart a high fantasy novel (which, hopefully, turns into a complex RPG) that I want done in five years or so. My passion of writing has been there for a long time and has flourished as I grew. I'm into the fantasy genre, both games and novels, and thoroughly enjoy a deep and complex RPG, whether it comes from the East or West. Oh and anime is awesome!
  • ryanwwong

    digital game ftw

Lost Password