GameStop Records $624 Million Net Loss in Q3

November 15, 2012 -

Video game retailer GameStop announced that it suffered a $624 million net loss in revenue for the third quarter that ended on October 27. While GameStop said that results exceeded expectations for Q3, it highlighted the fact that sales were down on new software, used software and new hardware. Total sales fell approximately 8.9 percent to $1.77 billion while store sales also fell 8.3 percent. Overall, GameStop recorded a consolidated net loss of $624.3 million.

GameStop put some of the blame on the lengthened life cycle of current generation consoles including the Xbox 360, PS3 and Wii and on new software titles released in Q3.

GameStop's "other" category increased 31.1 percent; digital increased 31.8 percent to $127 million; and mobile sales - which included tablet and pre-owned mobile products - totaled $43.2 million. GameStop's full 2012 forecast is $150 - $200 million.

Source: GII


Comments

Re: GameStop Records $624 Million Net Loss in Q3

HA! I used to work for EB Games Canada, before Gamestop bought them out, closed half the stores, and turned the entire company into a joke.

Suck on it Gamestop.

 

Credit where credit is due though. Although stock fell on the announcement, it's already rebounded.

Re: GameStop Records $624 Million Net Loss in Q3

So GameStop...how's that Kongregate IP working out for you?  Ouch!  Did that burning question sting a little too much?  Yeah, thought so!

(Guess I'm feeling a little sarcastic today.)

- Left4Dead Why are zombies always eating brains? I want to see zombies that eat toes for a living. Undead-related pun intended.

Re: GameStop Records $624 Million Net Loss in Q3

Lengthened console cycle is probably a major problem.  Sever companies have on on record as saying that they are holding back their major new IP until the new consoles come out.

"If you really want to enslave people, tell them you are going to give them Total Freedom." - L. Ron Hubbard
 
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