Thu, May 23, 2013 | 20:44 BST
GameStop posts quarterly decline, shrugs off Microsoft’s evasive stance on used games
GameStop has reported its quarterly results for the period ending May 4, with total revenues down 6.8% year-over-year to $1.87 billion, noting declines in both hardware sales and new software. Profits came in at $54.6 million, down 25% year-over-year.
While the firm reported growth in its mobile and digital divisions, the “late stage effects” of the current console cycle caused new hardware sales to fall 30.6% year-over-year to $241.8 million, and new software to decline 3.8% to $703.2 million. The firm also noted a decline in used sales of 7.5% to $572.6 million.
Mobile sales were up 290% to $46.8 million, and digital sales grew 47.3%.
The earnings release was followed by a call to investors, in which the firm’s president Tony Bartel said he expects current consoles to continue selling for the next two years.
CEO J. Paul Raines commented on Microsoft’s evasive stance on how Xbox One will support used games, and while Bartel reiterated that Microsoft said it will “support it,” Raines said: “We’ve got to let Microsoft take the lead.”
Raines also said that GameStop’s PowerUp members have 24 million older model consoles in their homes, and the hardware combined with the software they own is worth $1 billion in trade credits.
“The amount of trade currency is far bigger than anyone’s marketing budget,” said Raines. “If [Microsoft and Sony] support it, we can activate it.”
GameStop, like the rest of the industry and gamers alike, expect Microsoft and Sony both to reveal more on PS4, Xbox One and how the firm’s plan to factor in used games during E3.
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