Video Game Slowdown Impacts Amazon’s Bottom Line

The Wall Street Journal reports that mega-online retailer posted a 14% revenue increase for the financial quarter ending June 30th, but its profits fell 10% from $158 million to $142 million.

Amazon’s Chief Financial Officer Tom Szkutak commented on the drop laid much of the bad news on declining video game sales:

You’re seeing an industry slowdown in videogames and consoles.

Despite singling out games, other factors impacted the profit fall such as “flat” media sales in North American (including books and music) and a $51 million legal settlement paid to Toys R Us.

Via: GamesIndustry.Biz

Reporting from San Diego, GamePolitics Correspondent Andrew Eisen

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  1. 0
    PHX Corp says:

    This is why I shifted to Digital downloads on my Xbox 360, Wii and PS3, I still buy retail games time to time

    Watching JT on GP is just like watching an episode of Jerry springer only as funny as the fights

  2. 0
    Wormdundee says:

    Yeah, the price of video games IS slowly climbing, but it hasn’t quite reached those levels yet. In Canada, most high profile new releases are now selling for 70$, which means I don’t buy any new console games. It sucks, but I can’t justify that much money for a game.

    I’m being relegated to the PC scene (which I like better anyway), where new releases are consistently at 49.99.

    But yeah, back in the N64 days I paid over 80 dollars for Tony Hawk 2. Yeesh, I can’t believe I did that.

  3. 0
    JustChris says:

    Nah, I think paying $70 for an N64 game was worse, and $70 in 1998 dollars is somewhat more than $70 today. Right now I don’t see the games top more than $60, not including those that come with extra accessories.


  4. 0
    Neo_DrKefka says:

     They need to lower the prices. I mean we are seeing the price of video games at the level it was during the N64. Sony’s PS1 price and the games price point 39.99 and 49.99 is something people can work with

  5. 0
    ZippyDSMlee says:

    we need games to be rpiced the same as film 10-30 a pop. It will do far more good than bad.


    I am a criminal because I purchase media,I am a criminal because I use media, I am a criminal because I chose to own media..We shall remain criminals until Corporate stay’s outside our bedrooms..

  6. 0
    hellfire7885 says:

    When consoles go over 200 or 300 dollars, and game prices are approaching over 60 dollars, of course new sales are going to drop. And despire what the industry is trying to do, eradicatign the used market will mean people simply won’t game.

  7. 0
    Austin_Lewis says:

    I think that 51 MILLION DOLLAR SETTLEMENT Might have had a bigger role in screwing with their profits than the economy.  I know, sounds crazy.

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