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: Dec 02, 2018 1:13 pm
Related Forum: Gaming Discussion

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