GameStop Q1 Financials Report a Decline in Game Sales, Increase in Digital
Quarter 1 financial results for GameStop are in, painting a somewhat disheartening trend for the retailer. Sales for used and new games have dropped a whopping 12.5% as the demand for digital content has spiked an additional 23%.
Reports from the chain indicate that for the quarter ending April 28th, overall revenues saw a 12.2% decline, as the company raked in $2 billion versus last year’s $2.28 billion in earnings. Sales of new hardware ($348.6 million) made up 17.4% of the revenue while new games ($731.1 million) contributed 36.5%. With regard to used sales, pre-owned games and hardware ($619 million) made up 30.9% of the revenue.
Digital and mobile sales ($303.5 million) made up 15.2% of the total revenue, and even though there was an increase the demand for digital content, the overall revenue in this division saw a decline when compared to 2011’s $309.3 million in earnings.
As far as overall profits are concerned, GameStop earned a total of $72.5 million, a significant decline from the prior year’s earnings of $80.4 million. Could this be the start of a downward trend for the retailer as the digital marketplace becomes more and more popular? Sound off with your thoughts in the comments below.