Specialty retailer's digital channel posts increased sales to $134 million for latest period; total sales dip 11.1 percent to $1.55 billion.
GameStop's digital business continues to shine brightly for the specialty retailer. The company today reported sales and earnings for the second quarter ended July 28, revealing digital receipts surged 27 percent during the period to $134 million.
GameStop's "other" category (of which its digital business belongs), saw sales rise 40.6 percent during the quarter to $330.8 million. Mobile sales, composed of tablet and preowned iDevice products, came in at $29 million, and are on track to reach the company's forecast of $150-$200 million for the fiscal year.
As for its preowned business, GameStop said this sector outperformed its new product business, but decreased 11.2 percent to $562.2 million.
In all, GameStop's global sales for the period hit $1.55 billion, down 11.1 percent from the $1.74 billion tallied this time last year. The company attributed the downturn to a dearth of new game releases causing sales of new software and hardware to "decline sharply."
Profits for the period also fell, coming in at $21 million, a 32 percent decrease from the $30.9 million hauled during the same period last year.
Someone please explain how they rip you off. i have never gone into one and had them put a gun to my head to trade any of my stuff. Beleive it or not you have free will to either go in and trade or walk right out the door. so to sit there and say they just ripped you off is your own fault, they tell you up front how much you will get, then you say yes or no. Take a little responsibility for you decesions. Of course this all falls under the child like society we live in now where most people cant make big boy decisons without mommy or daddy.
the worst thing eb/ gamestop does is the whole selling second hand as new. i know the excuse some people make "that happened to be the display copy" that happened far to many times to people i know for it simply to be a display copy. (i'm talking every new game purchased for the last 7 years) . in other stores a display model might net you a discounted price tag.
im guessin the ppl who complain about GAMESTOP are kids, or just plain ass poor as hell?..GAMESTOP IS BASICALLY A 7 DAY FREE RENTAL SERVICE, don't be mad at gamestop because they did not give you the amount of cash you were EXPECTING when you sell your games for drugs..here's 3 advice: first, go to rehab..second, get a job..3rd, ask yourself, if i was the owner of a gamestop, what would i do..actually, scratch the 3rd one, cause you're not intelligent enough to make those kind of business decisions
@crazimax what kind of druggy sells their video games for drugs... that's all they do when they're high. obviously that's something you've dabbled in. you're like 18 aren't you. gamestop has horrible business practices, did you not see that they got voted one of the worst companies to work for? simply because they value sales over customer service. they have a horrible return policy. get your facts straight before you go and blame the masses. not to mention your post is irrelevant.
@bobbo888 horrible return policy?..I NEVER HAD A PROBLEM, in fact, i use gamestop as a SECOND rental service on top of gamefly..gamestop has never done me wrong..im 28, i work in the pharmacy, pretty sure i make way more money than you to be complaining about gamestop..oh btw, you're not intelligent like you think you are by giving statistic that GAMESPOT show gave you in their article..go ahead and try to make a comeback, you lost already by stupidly repeating negative articles OTHER PPL has posted..stupid poor ppl complaining why they don't get more than 20% back..heres a tip..dont get into gaming if u can't afford it or stop expecting someone to pay top dollar for your old crap..dont bother replying..you're nothing but a copy and paste fool hahaha
@crazimax if your that greedy eventually your gonna chase away your customers. it might take 10 years but it will happen. lol there are more then a few multi million dollar businesses that went bully up. gamestop / eb wasn't always this bad they got worse over time.
it's working for them now, but its not gonna work forever.
People would buy more if they didn't shove pre orders down your throat, I avoid that store as much as possible because of it.
The push to digital also means more and more DRM. We pay a premium price for convenience. Ironically, companies save a lot of money going digital....and many times charge us the same price for less. It's only the smart consumers that only wait for sales, but I don't think there is enough of us to stop the tidal wave trend of Digital sales.
Companies want it, it means more control and less costs to produce a game.
Typical Gamers want it for convenience, and aren't aware of the hidden cost of DD.
Only a matter of time before the big companies shut Gamestop out of the digital game. Why let them download your product when you can do so yourself? There is no need for a middle man like Gamestop. We've already got Steam, Origin, Gog, and others that I'm sure I've forgotten. We don't need Gamestop for digital purchases.
Gamestop will soon be going the way of the video store. Couldn't happen to a nicer company.
@J_Dangerously Steam is just as much a middle-man as Gamestop is. Valve doesn't have a huge library. What about GMG.com?
Digital retail is surprisingly strong. I don't think it will catch up to physical retail....yet, but eventually I do see the focus shifting to digital copies.
Back in the 80's we had casette tapes, to CD's, and now we have mp3's.
We have physical books, to audio books, to e-readers.
Even comics come with a digital copy with the purchase of a physical.
I do believe that in the next 10 - 15 years we will see the video game industry move from physical to digital.
yup but you can still put those digital mp3s on a cd. I doubt its gonna be that soon and even so I don't think it will ever be a 100 percent(perhaps having the option to order a physial disk copy of the game) the disks themselves cost pennys to make.
I've read several financial articles where GS reports big sales gains. My question is who are the morons who are buying all this stuff from GS? Have they not heard of Amazon or other better retailers?
@GalvatronType_R It's because there's still people only consider Gamestop out of habit.
The main reason(& only reason I can see why people still buy games from their B&M stores than Amazon is because they have to have the game right then than wait for it to be shipped to them. Even if ordering online will save them money. Which might explain why the main customers for them are parents and little kids that don't know better.
I'm not against digital downloads for games, but I really hope it doesn't replace physical copies although I expect eventually in time it will. I like to buy the physical copy for collecting purposes. Also digital downloads often cost the same as a physical copy. Why would I pay the same amount when the company must be saving money on not having to make a physical copy, ship it, sell it, etc. I would fully embrace digital downloads probably for a discounted price, but until that happens, or I don't have a choice, I like to collect the physical copies. -jnerd84.blogspot
@joshnixo It's not free for them to do digital. They have to pay for bandwidth and servers. Physical media is pretty inexpensive. It costs less than a buck to make a disc.
@mlcarter815The Distribution costs on selling games, like with most manufactured goods, remain the greatest cost, once the game has been developed. Compared to a Physical copy, Digital copies of games should be far cheaper. No physical storage costs, national and worldwide shipping cost, Zero inventry risk
@mlcarter815 Well I feel dumb lol. I actually hadn't even thought of that at all. I rescind my comment, and just keep the the part about liking physical copies better.
Fuck DD, if a game system goes 100% DD, I no longer buy for that system and play my truckload of backlog.
I would not be surprised if one day that GameSpot's digital sales will be the majority of the retailer's profits.
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