GameStop Saw New Hardware Sales Rise 99.8%, New Software Sales Down Due to PS3/360 Decline
For the 9-week holiday period that ended on January 4th, 2014, GameStop is reporting global sales of $3.15 billion, a 9.3% increase when you compare it to the 2012 holiday period. One major factor in this increase is from new console sales, which grew 99.8% thanks to the PlayStation 4 and Xbox One.
While GameStop reports strong sales of next-gen software, it was offset by a “greater than expected decline in Xbox 360 and PS3 software sales,” with new software sales falling 22.5%. Things are brighter for the pre-owned category, as it was up 7% and gross margins are expected to range from 46%-49% for the fourth quarter and fiscal year.
GameStop also saw Other sales increase by 4.8%, with digital receipts at $207.3 million (up 14.9%), and mobile revenues at $94.8 million (up 23.8%).
Here’s a look at how each category performed this holiday season (last year in parentheses):
- New video game hardware – $1.408 billion ($524.5 million)
- New video game software – $1.08 billion ($1.393 billion)
- Pre-owned video game products – $567,300 million ($530 million)
- Other – $454 million ($433 million)
GameStop CEO Paul Raines talked about the numbers and revealed some interesting stats:
I am pleased to report that the extensive planning by our entire team over the past year to prepare for the new console launches paid off. Our outstanding execution during the holidays resulted in GameStop securing the number one market share position in the U.S. and in most of the countries in which we operate today. GameStop also had the highest software and accessory attach ratio of any retailer for both new consoles. Building off this momentum, we are in an excellent position to drive the global adoption of the next generation of new video game products in 2014.
Are you at all surprised by the drop seen with new software sales? Let us know in the comments below.