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GameStop’s First Quarter Results Marred By Decrease in Sales

GameStop has published its financial report for the first quarter of fiscal 2018, revealing a decrease in sales across the board.

Total global sales were down by 5.5 percent, amounting to $1.93 billion. Store sales were down 2.6 percent in the US and 11.6 percent internationally. New hardware sales decreased by 7.9 percent while software sales decreased 10.3 percent, which GameStop had previously anticipated. The company notes that year-on-year results are down as the highly successful launch of Nintendo Switch helped to push sales significantly last year.

GameStop also attributed the year-on-year decrease in software sales to the launch of multiple high-profile titles across various platforms last year compared to those released this year.

As a result, preowned sales are also down by 5.8 percent. Elsewhere, digital sales decreased by 2.5 percent to $43.0 million.

GameStop’s first quarter net income stood at $28.2 million, down from previous year’s $59.0 million. The company noted that several store closures contributed to the decrease in income.

Back in May, GameStop’s newly-appointed CEO Michael Mauler resigned suddenly after just three months on the job. He cited “personal reasons” for his departure. Mauler has now been replaced with former Microsoft executive and current board member Shane Kim, who will lead the company as interim CEO until a permanent appointment is made.

[Source: GameStop]