GameStop’s Stock Dips 11% After Posting a Drop in Sales Over Last Year

by Ron Duwell | November 21, 2014

GameStop

GameStop has reported its latest quarterly financial standings, showing a drop of over $100 million from the same period last year as it wraps up the second holiday season with the booming PlayStation 4 and Xbox One.

The sales figures reported a total of $2.09 billion in sales accounting for the three busiest months of gaming, a drop from the $2.11 billion it saw the previous holiday season. The decline is a .7 percent drop from last year’s figures, and it falls short of analysts’ predicted income of $2.2 billion. In response, GameStop’s stock closed out Thursday down 11 percent, and fell nearly an additional 13 percent on Friday.

GameStop points toward Assassin’s Creed IV Black Flag successfully launching on the PlayStation 3 and Xbox 360 before it was released for the next-gen consoles. Assassin’s Creed Unity had Rogue to back it up, but the two launched at the same time, meaning smaller figures than a spaced out release.

Overall, console and hardware sales climbed 147.4 percent, but software sales took the biggest hit dropping 34.4 percent. GameStop points to a decline in hits when compared to last year’s line-up of Grand Theft Auto V, Pokemon X and Y, Batman: Arkham Origins, Assassin’s Creed IV Black Flag and Battlefield 4. I’ll agree with this, because this year has proven a little dry.

Digital sales through GameStop cards also hiked up 52.4 percent, showing that the company is doing quite fine adapting to the increasingly digital world.

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Ron Duwell

Ron has been living it up in Japan for the last decade, and he has no intention of leaving this technical wonderland any time soon. When he's not...