Pre-owned Game Sales Enable GameStop to Survive in Consumer Electronics Business, Says CFO
With GameStop‘s stock dropping by 27% since the end of November last year, the retailer is relying on diversifying its business not only within the video games category but also beyond it. Chief Financial Officer, Robert Lloyd, has told Fortune that GameStop “maintained a balance sheet” that made room for diversification, and pre-owned game sales have helped it to survive in the consumer electronics business with a return of over $1 billion annually. “Preowned sales have been an important differentiator in our ability to survive in the consumer electronics category, which can be a challenging business,” he said.
Wedbush Securities Analyst, Michael Pachter, believes that GameStop will be the “last retailer” to lose its customers to digital sales. When December’s results roll out, Pachter expects to see “a rebound to positive physical sales growth.”
That said, GameStop is looking forward to developments on the VR front, with Lloyd stating:
These broader VR products that will make use of technology to drive the VR content is a place we’ll play in heavily. We’re particularly excited about the gaming content that will be driven by these devices.
Pachter believes VR could help GameStop offset its loss of market share to digital space.
Do our readers believe VR will help to bolster physical sales? Let us know.