informa
/
News

All the growth at GameStop is outside its game business

Year-on-year, there's not much change in sales -- and the company's big gains were made in its mobile and collectibles businesses.

GameStop has released its full-year financial results for its fiscal year, ended January 30, 2016. The company grew its revenues, but if you dig into the results, you'll see it wasn't the core game business that drove growth for the company.

Net earnings for the year were $402.8 million, showing only slight growth over 2014's net earnings of $393.1 million.

But the game business treaded water: New software sales at GameStop stores declined during the holiday period, while used game sales were flat; the company offset this with increases in its "technology" (mobile) and "other" (primarily collectibles) segments, notably thanks to its acquisition of ThinkGeek

Gamasutra analyst Matt Matthews dug into GameStop's new software sales decline in a blog post last year, and it's as relevant in light of these numbers as it was then.

The company closed its stores in Puerto Rico during its fiscal year, which also impacted its numbers slightly.

GameStop is not projecting much sales growth for 2016, either -- 0 to 3 percent, with comparable store sales shrinking from 0 to 3 percent. On the other hand, it has said it has plans to buy at least two more mobile phone store chains during the year, showing that its shift away from relying heavily on the video game business continues apace.

Latest Jobs

Sucker Punch Productions

Bellevue, Washington
08.27.21
Combat Designer

Xbox Graphics

Redmond, Washington
08.27.21
Senior Software Engineer: GPU Compilers

Insomniac Games

Burbank, California
08.27.21
Systems Designer

Deep Silver Volition

Champaign, Illinois
08.27.21
Senior Environment Artist
More Jobs   

CONNECT WITH US

Register for a
Subscribe to
Follow us

Game Developer Account

Game Developer Newsletter

@gamedevdotcom

Register for a

Game Developer Account

Gain full access to resources (events, white paper, webinars, reports, etc)
Single sign-on to all Informa products

Register
Subscribe to

Game Developer Newsletter

Get daily Game Developer top stories every morning straight into your inbox

Subscribe
Follow us

@gamedevdotcom

Follow us @gamedevdotcom to stay up-to-date with the latest news & insider information about events & more