GameStop New Software Sales Increase by 43%
Mobile and digital channel growth is expected to drive higher profitability for the company
GameStop,the world’s largest multichannel video game retailer, reported its sales and earnings for the third quarter, which ended Nov. 2, 2013. During the quarter, sales of new software increased by 43.1 percent , driven by the strong performance of recently released new titles, such as Rockstar Games’ Grand Theft Auto V. New hardware sales grew 15.3 percent, led by strong sell-thru of Nintendo 2DS and 3DS. The console gaming market was faced with challenges in 2012. The company invested in mobile and digital business this year to position GameStop for future success.
GameStop also saw dramatic international growth in mobile and digital channels, particularly in Europe. Mike Hogan, executive VP of strategic business and brand development says, “Our new businesses of digital and mobile have provided consumers with fresh and exciting ways to engage with their favorite GameStop store or digital platform, while providing us richer margins. We have taken share through strong execution and innovative marketing. The launch of PowerUp Rewards in 2010 has now added 25 million members in the United States, and 6 million members in Europe and Australia, who see us as their trusted game advisor.”
The total global sales for the third quarter of 2013 were $2.11 billion compared to $1.77 billion in the prior year quarter, an increase of 18.8 percent. Consolidated comparable store sales rose 20.5 percent, significantly above the forecasted range. GameStop’s mobile and digital businesses had sales and receipts growth of 14.4 percent to $49.9 million and 8.6 percent to $137.9 million, respectively.
“Our strong third quarter sales results give us great momentum as we enter the new console cycle,” says Paul Raines, CEO. “Consumer appetite for the new consoles is very strong judging by last week’s successful PS4 launch and the excitement for tonight’s Xbox One launch event. Globally, we are executing our unique playbook to maximize our position of strength.” He reports the PS4 and the Xbox One launches early in the quarter generated a great deal of consumer interest.
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