PS4 and Xbox One Lead GameStop to “All-Time High;” Feeling “Upbeat” after Sony’s Destination PlayStation
The fourth quarter numbers are in for GameStop’s end of 2013 sales and they couldn’t be better according to a press release from the retailer.
Coming in at $3.68 billion in earnings, the figure is a 3.4% increase over the $3.56 billion reported at the same time in the previous year. $3.15 billion were earned during the Holiday period. According to the announcement, “the growth in sales was driven by the successful launches of Microsoft’s Xbox One and Sony’s PlayStation 4.”
GameStop’s CEO Paul Raines commented:
The launch of new consoles in 2013 marked the return of innovation to the video game category and GameStop’s market share increased to an all-time high. Our emerging digital and mobile businesses, which did not exist three years ago, surpassed $1 billion of revenue. As we push forward into 2014, both the re-energized video game category and our new Technology Brands business unit provide us with solid growth opportunities in the consumer electronics and wireless markets.
Among the sunny financial news are some dark clouds. Plans have been announced for GameStop to close 2% of it’s physical retail locations.
In addition to the information provided by the press release we get some further tidbits thanks to a string of tweets from Wall Street Journal Editor Ian Sherr.
We learn that greater-than-expected supply of Xbox One and PS4 consoles caused the decline of PS3 and Xbox 360 sales, but the new machines already sold more than their predecessors in their first 15 months, while Demand for PS4 is still lower than supply internationally. The PS4 Camera is in very low supply as well, as it sparked interest between non-core users. One third of sales for next generation consoles were funded by trade-in credit.
Raines also mentioned that Titanfall was well received, with four times as many pre-orders on Xbox One than on 360. Every next generation game has beat expectations so far. He expects PS3 and Xbox 360 demand to keep lowering during the rest of the year, spiking temporarily with new games like Titanfall itself.
Finally, we learn that GameStop’s CEO is seeing a lot of investment in the new consoles, and is feeling “upbeat” after witnessing what’s to come at the Destination PlayStation event held by Sony for retailers. According to the rumors we heard a while ago, he isn’t the only one.