GameStop Records $624 Million Net Loss in Q3

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

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