Gamestop Reports a Loss of $488.6 Million During its Third Quarter

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Gamestop has put out its fiscal report for the third quarter which ended on November 3 and it does not look very pretty. The report showed an overall net income loss of $488.6 million.

Noted by IGN, pre-owned sales were down 13.4% compared to previous quarters, which is a heavy part of GameStop’s business. However, despite the loss in the third quarter, new hardware sales were up. especially for the sales of the Xbox One X and PS4 at 12.8% and software sales increased by 10.9%. Accessories also saw an increase of about 32.6%.

Rob Lloyd, chief operating officer and chief financial officer at GameStop said the growth in software sales can be attributed to huge titles such as Red Dead Redemption 2 and Marvel’s Spider-Man.

“Notably, software sales benefited from a compelling title line-up compared to last year, including strength from Red Dead Redemption 2 and Spider-Man, as well as the earlier launch of Call of Duty compared to last year. We are especially pleased with our performance in October, a month where The NPD Group disclosed that the U.S. physical video game industry grew by 46% while our U.S. physical video game revenue outpaced the industry and increased 63% resulting in market share gains.”


For the fourth quarter, GameStop has lowered their expectations and is predicting hardware sales will be a heavier selling point then they had initially planned for the company. The underperformance in pre-owned sales and certain games resulted in losses higher then the company was hoping for.

Posted:
Related Forum: Gaming Discussion

Source: https://www.dualshockers.com/gamestop-fiscal-report-third-quarter-loss/

Comments

"Gamestop Reports a Loss of $488.6 Million During its Third Quarter" :: Login/Create an Account :: 13 comments

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MikePosted:

R.I.P GameStop new era tho

MushroomElmPosted:

They should recognize their future loss now. GameStop is the modern Blockbuster. It's easier to have games digital, without risking scratches and such.
I've always loved going to GameStop

TTGPosted:

There business practice is not the best, most people won't even want to go in the store because no one wants to bothered.

coolbunny1234Posted:

As it should be, they've got an awful business model.

GT-RPosted:

Not surprising with everything going digital. I haven't bought any physical games in a long time. If internet speeds get better across the board then I don't see things getting better for them.

SilkyPosted:

Seems that many gaming shops are seeing quite a large loss in revenue over the past few years, hopefully it doesn't leave them out of business.

TOXICPosted:

Thats a hella lot of money for sure, but hell, they can affored it lol.

MazePosted:

Area52
ZTG I predict GameStop will go out of business in the next 6 years.


I think it'll be within the next 10 years.


They lost almost half a billion dollars in the 3rd quarter of the year. A feel like another 5 years is generous tbh

FunkyBuddhaPosted:

ZTG I predict GameStop will go out of business in the next 6 years.


I think it'll be within the next 10 years.

S7Posted:

time for gamestop to give up i would say XD