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.

Treasure bin: Cult Hits, chea pass gaming options, and rants about gaming in general

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BearDogg-X: Not game related, but found it interesting: http://www.upworthy.com/the-real-reason-they-still-play-mrs-robinson-on-the-radio?g=2&c=mrp1 - 90% of the music/TV/news media in USA owned by 6 companies.05/20/2013 - 2:38pm

BearDogg-X: @PHX Corp: It's like they're just throwing crap at the wall to see what sticks at this point.05/20/2013 - 12:15pm

Kajex: http://www.rockpapershotgun.com/2013/05/20/neverwinter-money-making-exploit-sees-cryptic-turn-back-time/ My understanding is that none of this was illegal, either.05/20/2013 - 11:42am

PHX Corp: http://www.gamezone.com/news/2013/05/20/violent-video-games-are-bad-for-your-body Most rediclous Study about violent video games ever05/20/2013 - 10:13am

Cecil475: @PHX Corp - The dude's a moron who wouldn't know crap if it came up and kicked him.05/19/2013 - 6:36am

PHX Corp: http://kotaku.com/ea-sports-developer-calls-wii-u-crap-and-nintendo-wa-508481261 EA Sports Canada Moron calls Wii U 'Crap' and Nintendo 'Walking Dead'05/18/2013 - 11:42am

E. Zachary Knight: If the videos are of sufficient quality that people subscribe and watch regularly, then those let's players are providing a service that people want. That is the heart of capitalism. That is not something that should be shamed.05/17/2013 - 8:06am

E. Zachary Knight: I have no idea who either of those people are. However, I still don't see why making a business out of creating let's play videos is somehow evil or wrong.05/17/2013 - 8:04am

MaskedPixelante: It sure is if you're just doing it for the money. See Tobuscus and/or Pewdiepie for what happens when people get into it just for the money.05/17/2013 - 7:30am

E. Zachary Knight: Why is it wrong to make money doing LPs? Why should that be something that should be shamed?05/17/2013 - 6:20am

MaskedPixelante: https://twitter.com/PsychedelicSA/status/335183893214924801 Now here's an interesting, glass half full thought about the Nintendo LP thing. It outs the people who are just doing LPs to make money.05/17/2013 - 5:56am

E. Zachary Knight: I responded in writing to all this "let's play" stuff Nintendo Started. No need for my permission, I won't give it. It's not mine to give. http://divineknightgaming.com/?p=29205/16/2013 - 2:21pm

E. Zachary Knight: Lars Doucet of Levelup Labs has a Reddit going on game companies that allow monetization of Let's Play videos. http://www.reddit.com/r/Games/comments/1egayn/lets_build_a_list_of_game_studios_that_allow/05/16/2013 - 1:04pm

Sleaker: @Imautobot - yah I wouldn't use an emulator as a good first run test of how stable the console is, haha.05/16/2013 - 11:47am

E. Zachary Knight: The 50th person to jump off a bridge is just as dumb if not dumber than the 1st.05/16/2013 - 10:03am

MaskedPixelante: Yeah, let's all jump on Nintendo for doing this, even though they're hardly the first company to do this...05/16/2013 - 9:47am

E. Zachary Knight: Wow Nintendo, this is wrong. http://kotaku.com/nintendo-forcing-ads-on-some-youtube-lets-play-video-50709238305/16/2013 - 8:44am

Imautobot: @Sleaker, further gameplay has revealed that the controller button do stick under the faceplate. Also, The NES emulator (Emuya)keeps crashing on me, though I think a bad ROM is causing it.05/16/2013 - 7:10am

Papa Midnight: AE: I wonder if any other publishers will follow suit.05/15/2013 - 8:12pm

Andrew Eisen: EA is ditching Online Pass. http://venturebeat.com/2013/05/15/ea-kills-its-controversial-online-pass-program/05/15/2013 - 7:20pm

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