Strong Q4 can't help GameStop escape downturn; Hardware sales fall sharply

International games retailer GameStop has reported a year-on-year increase in profits from $943.2 to $974.9 for the 14 weeks ending February 2nd.

That’s despite a fall in net sales from $3.579bn in the same period last year to $3.562bn. Operating profit jumped from $302.5m to $412.3m. Net income jumped from $174.3m to $261.1m.

Like-for-like sales for the period fell by 4.6 per cent, although digital sales climbed 60.3 per cent, offsetting what the company described as “a weakness” in its core business.

The story is too old to be commented.
Tetsujin1881d ago

I don't want to sound mean, and I do hate the thought of people potentially losing jobs; GS needs to hire more knowledgeable employees, and stop trying to force pre-orders every time I buy something. I understand there's a quota that needs to be met, however I don't need to reminded every damn time about new releases AFTER I specifically mention what I want and don't want.

Also they need to do something about this "bonus trade-in" that supposedly helps the customer - when all it does is makes the offers "half" legit. I remember they made me an offer for one game I had, I laughed so hard I almost fainted, and left the store still laughing.

FreshRevenge1881d ago

I don't really shop or buy my games at Gamestop. I think you are right when you say they need more knowledgeable people. The other night, a friend of mine was getting Bioschock Infinite at the midnight release. We got there early and my friend paid for his game in full. However, the guy started to yap about some extra bonus that you get with your MP. I being the up to date gamer knew very well, that there was no MP in Bioshock. I told my friend that there was no multiplayer. The guy behind looked at me like I was wrong. I said that Ken Levine express it a number of times that there is no MP. The guy behind the counter looked at the manager and the manager said there was MP. I said there was no MP. The manager had to look at the box and see that there was no MP. So the guy looked upset that he was wrong and now wasn't able to sell his special bonus. The bonus was actually referring to the SP unlocks and stuff.

The problem is that Gamestop is so desperate to stay in business that they are spending millions of dollars to get these exclusive deals with game developers that they have this pressure to sell, sell, sell.Basically every Gamestop employee and manager have to follow a list of directions.

I usually buy my games on Amazon or get them at Best Buy. I have never had a problem with people trying to sell me extra stuff or to preorder another game in those places. I think Gamestop needs to be destroyed! As far as Gamestop employees, start looking for another job!

Tetsujin1881d ago

Lately I've been shopping on amazon because there's a lot of deals that I find impossible to pass up - even when GS swears "you get extra 30% trade in credit towards X game" when on amazon it's that price WITHOUT having to trade in your games; that alone is a deal breaker. I agree with the poster below about selling new games opened - If they don't have an unopened copy I refuse to buy it, regardless of how much they try to swear on it being new. Anymore I'll go to GS if there's something they have where other places (including online) doesn't have it available, and even then I still think twice just because as soon as I buy it "oh would you like to buy this along with it?" or my favorite "Would you like to pre-order X game while your here today?"

3-4-51880d ago

I traded in 5 games 2-3 weeks ago when they were offering +50% trade in value and I walked away with $120 in store credit.

You need to buy the right games that will have re-sale value and you need to look for the right time to trade them in.

I've bought so many "free" games because of doing this.

There is a system in place....understand how to work it.

Tetsujin1880d ago

I agree with you on the whole system thing; and yes there is times where you can go to one store, buy a game, open it, trade it to GS for double/triple the worth. I'm speaking more of a general sense, and from a personal standpoint there's better shops that offer both cash and a higher deal. One store here offers new releases $50 (if it's a $60 game) within 14 days of release date, which to some means they "rented" the game(s); and if you haven't used the DLC codes that's an additional $5, so in a sense you buy a new release, either hate it or beat it, don't use the pass/codes, and your only out $5; instead of going to GS and sometimes advertised new releases are bought back at $35 (They pulled this with countless games).

Like I said I agree there is a system and learn how to work it, however again it's not all the time and there's better alternatives when selling/trading games.

RE_L_MAYER1881d ago

They change their employees all the time, dont keep new (sealed) games unless you pre order it-usually poor service and I have to deal with them due to stupid pre order deals as well so maybe it is time for them to dissapear

josephayal1881d ago

digital sales climbed 60.3 per cent?? I really hope this isn't true because not everyone has an internet connection

JBSleek1881d ago

If you don't have internet you have bigger priorities then getting a $400 system and $60 games.

Tetsujin1881d ago

Honestly I don't think GS will go anywhere anytime soon, if anything they will be like a lot of other stores started doing - Retro gaming; Carry the latest greatest however sell vintage games and consoles that's probably collecting dust in some warehouse. I know a few gaming stores where I lived started this and made MORE money off a lot of collectable games dating back to the NES days, and some dating back to the Magnavox (sp) Odyssey days.

rainslacker1881d ago (Edited 1881d ago )

It raised 60% from the year before. This is in line with a report a couple weeks ago saying that digital sales have increased(~140% I believe) from the previous year. It doesn't mean that digital sales make up 60% of all game sales now. Retail still trumps that for the console market.

The digital sales increase also includes DLC, Micro-transactions, Xbox Live/PSN cards, phone games, etc. So it's not all just for actual console games.

Honestly, retail could play an important part of getting digital to go more mainstream. If they had some sort of way for people to download their content at the store through high speed internet(or possibly local storage), then it could make it easier for those that are willing to buy digital, as they wouldn't have to worry about keeping up an internet connection. Some things would have to be worked out, such as what happens if the people lose that data and need to re-download it.


That would make them kind of like play and trade. Unfortunately GS doesn't really understand the value of keeping manuals and cases and how people that like older games, typically like those things. It saddens me to know how much of that stuff they throw away every year just to throw it into a generic box, which ironically takes up the same amount of space. On top of that, the retro market is a place where people aren't likely to take in crappy trade in values for their games. There may be some stupid ones out there, but game collectors can be pretty savvy. Either way they'd have to build up a pretty sufficient amount of stock before they could make it viable nationwide(offline). That's going to be hard to do since collectors know there are better places to sell their games at.

josephayal1881d ago

I had the 50Mbps service, is fast enough to help the space shuttle

Jaqen_Hghar1881d ago

A man has come to prefer Amazon far more and a man will get his 2 or 3 PS4s there

Donnieboi1881d ago

Lol don't buy em all. I need at least 2 for my home, y'know :D

Jaqen_Hghar1881d ago

a man will sell all but one on Ebay...for $800+

fatstarr1881d ago

its getting to the point where im impatient and I cant wait for the game to ship 2 -7 days from now...

Jaqen_Hghar1880d ago

a man gets Amazon prime for free because he is a college student. A man gets everything release day with the 2 day shipping if he pre-orders.

M-M1880d ago

Why do you start all of your sentences like that? xD.

Show all comments (22)
The story is too old to be commented.