GameStop Reports $673 Million Loss in 2018

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Massive gaming retailer GameStop has shared the results of its fourth quarter and fiscal 2018 results which included a loss $673 million for the fiscal year. Figures and details on earnings for the year showed that sales of products like accessories and collectibles were up, though new hardware and software sales as well as the sale of pre-owned items were all down. The report did note that 2017’s fiscal year consisted of 53 weeks as opposed to 2018’s 52 which was referenced in the executives’ comments on the company’s earnings.

GameStop’s total global sales reported for the fiscal year amounted to $8.3 billion, though that figure was still a 3.1% loss compared to the previous year. The loss of several hundred millions in revenue was one of the key points from the report, and GameStop’s COO Rob Lloyd said that if you exclude the 53rd week from 2017, sales of products like new hardware were in line with the previous fiscal year.

“We are pleased to have delivered fiscal 2018 results within our adjusted guidance range, which included fourth quarter and full year sales growth across video game accessories, collectibles and digital,” Lloyd said in a statement within GameStop’s report. “Excluding the impact of the 53rd week in fiscal 2017, new hardware sales for the year were in line with last year. As we think about 2019 and beyond, we recognize the challenges facing our pre-owned video game business and are prepared to address them as we continue to evolve our business model going forward.”

A trend towards digital sales has been a threat to GameStop’s brick-and-mortar model, though the company did report that digital receipts for fiscal 2018 were up 16.5% to $1.3 billion. Sony did confirm recently that it will no longer sell digital codes for games through retailers such as GameStop.

Rumors have indicated that GameStop might be moving towards an updated version of its stores with a model that would focus more on a “cultural experience,” though those ideas have not yet been confirmed by the company.

Posted: Apr 05, 2019 10:43 am
Related Forum: Gaming Discussion

Source: https://comicbook.com/gaming/2019/04/03/gamestop-673-million-loss-in-2018/

Comments

ZemaPosted: Wed. Apr 10, 2019

Im happy to see them take such a lose after robbing people for there money with their dumb trade-in prices

ScxttPosted: Tue. Apr 09, 2019

Peer
Cookie Thats what happens they deserve it imo they offered people $3 for a $60 game that just dropped.

i mean yeah every single time i use to go there i always had that issue it's bull crap

Pretty much what most stores do, try and get something for nothing

PeerPosted: Tue. Apr 09, 2019

Cookie Thats what happens they deserve it imo they offered people $3 for a $60 game that just dropped.

i mean yeah every single time i use to go there i always had that issue it's bull crap

CykaPosted: Sat. Apr 06, 2019

Rip, this would kind of be sad if this actually happened man

XeCookiePosted: Sat. Apr 06, 2019

Thats what happens they deserve it imo they offered people $3 for a $60 game that just dropped.

AnimePosted: Sat. Apr 06, 2019

Seems like they keep trying to do everything they can to keep the business going.

G36cBossManPosted: Fri. Apr 05, 2019

Good I hope they go completely bankrupt this year *uck game stop they are a horrible company should have gone under years ago...

lbreadsticklPosted: Fri. Apr 05, 2019

Maze
lbreadstickl Used to love the place. I remember when I was 9 or so, 23 now, mother waited in car while I went in to buy a gold membership card for Xbox. 1 year was $50 back then I think, charge came out to $65+ with tax. I remember looking at the guy and he didn't say a word just stared at me.. Obviously the fact that I still remember that means it was a breach of trust which I'm huge on as well as ethics. Never gone back since.

I mean, I go into place knowing I have to pay tax. That's not just a GameStop tax lmao. I get more upset about how I remember selling my Ps2 and all my games for pennies on the dollar. Can't believe we used to think trading in games at GameStop was smart.

I knew what tax was back then, I'd also bought live memberships before. What I'm saying is back then, 1 year of live was a $50 purchase + tax, that does not come out to $65. More like $54.xx.

AnhurPosted: Fri. Apr 05, 2019

I always hated going to gamestop to trade things in or buy systems. A youtuber made a pretty good video on how garbage working at gamestop is, he tells stories that you will get fired if you don't sell enough insurance every month, and they would stop asking you if you want to insure the game and just put it on your bill, a lot of people didn't even notice until they randomly check their receipts which doesn't happen too often.