Report: GameStop Registers $488.6 Million Loss in Q3

GameStop is in a weird place. With the increase in sales for digital game licenses, the company has began focusing on more pop culture and novelty items while still trying to push physical game sales. Unfortunately, it seems like redirection isn’t paying dividends, and the bottom line is boldly supporting that.

The gaming-focused retailer released its third quarter fiscal report, which showed a extensive $488.6 million is net income loss. The company saw a 13.4% decrease in pre-owned game sales, which is where the company generates a large portion of their revenue.

GameStop, which has been one of the most popular retailers for gaming needs, has began to shift its focus more towards the collectibles spectrum of gaming, by incorporating various gaming-themed items, to help drive overall business with the increased popularity and convenience of purchasing games digitally.

Chief operating officer and chief financial officer of GameStop, Rob Lloyd, did state that while the company did take a hit with their income, they did see overall growth. “We experienced solid growth in the third quarter, including double-digit growth across software, hardware, accessories and collectibles, underscoring GameStop’s leadership position in video games and our unique ability to satisfy all of our customers’ entertainment needs” Lloyd stated in during the fiscal debriefing. While pre-owned game sales took a hit, hardware sales increased 12.8%, along with a 10.9% increase in new game sales, and a 32.6% increase in accessory sales (controllers, headsets, etc). With multiple strong, AAA titles, such as Marvel’s Spider-Man and Rockstar’s Red Dead Redemption 2, releasing during this quarter, it makes sense to see increases across the board in this fashion; especially with multiple console bundles being available for those titles.

It would be safe to assume GameStop will see an increase after Q4 is wrapped, due to large holiday sales, but the income loss of this magnitude for GameStop is one that raises many concerns for the company currently, and especially in the years to come, as consumers slowly move to a future of primarily digital game sales.

For updates regarding GameStop and its future financially, be sure to follow us on Twitter and Facebook, and keep it locked in on Bonus Accessory.

Author: Travis White

Editor-In-Chief & Creator of Bonus Accessory. When not publishing on Bonus Accessory, Travis also host the Game Pass Gamecast podcast, centered around Xbox & PC gaming. He also knows that Ubisoft will eventually make another mainline Splinter Cell title (may not be until he's 50, but hey, he'll take it).

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s