Gamestop Reports a Loss of $488.6 Million During its Third Quarter
Gamestop has released its fiscal report for its third quarter and it shows an overall net income loss of about $488.6 million.
Gamestop has put out its fiscal report for the third quarter which ended on November 3 and it does not look very pretty. The report showed an overall net income loss of $488.6 million.
Noted by IGN, pre-owned sales were down 13.4% compared to previous quarters, which is a heavy part of GameStop’s business. However, despite the loss in the third quarter, new hardware sales were up. especially for the sales of the Xbox One X and PS4 at 12.8% and software sales increased by 10.9%. Accessories also saw an increase of about 32.6%.
Rob Lloyd, chief operating officer and chief financial officer at GameStop said the growth in software sales can be attributed to huge titles such as Red Dead Redemption 2 and Marvel’s Spider-Man.
“Notably, software sales benefited from a compelling title line-up compared to last year, including strength from Red Dead Redemption 2 and Spider-Man, as well as the earlier launch of Call of Duty compared to last year. We are especially pleased with our performance in October, a month where The NPD Group disclosed that the U.S. physical video game industry grew by 46% while our U.S. physical video game revenue outpaced the industry and increased 63% resulting in market share gains.”
For the fourth quarter, GameStop has lowered their expectations and is predicting hardware sales will be a heavier selling point then they had initially planned for the company. The underperformance in pre-owned sales and certain games resulted in losses higher then the company was hoping for.
Could the loss come from the rising popularity of digital sales? Could it be nobody wants to deal with GameStop’s return policy, especially this man? I am not entirely sure. However, what I am pretty sure about is that GameStop is slowly losing business and something must change.