informa
/
Business
News

Despite strong Switch demand, weak game sales drag GameStop's profits down

GameStop's latest earnings report show profits fell as sales of both new and pre-owned games slipped, 'impacted by lagging Xbox One sales.'

Today's the day GameStop announced earnings for the second quarter of its 2017 fiscal year, and while revenues climbed slightly it looks like profits fell as sales of both new and pre-owned games slipped.

In terms of numbers, the company reported profits of $22.2 million on sales of $1.68 billion during the quarter, which ended July 29th. That's about $5 million less than the $27.9 million in profits on $1.63 billion in revenue it saw during the same period last year.

So what changed? GameStop says that while sales of new video game hardware rose about 14.8 percent (in large part due to continuing demand for Nintendo's Switch console) sales of both new and used game software were "impacted by lagging Xbox One sales" and fell 3.4 and 7.5 percent, respectively.  

Outside of games, the company's fortunes appear to be doing well; both its "Technology" and "Collectibles" divisions each saw a year-over-year rise in both sales and profits, thanks in part to strong sales of licensed Pokemon and Marvel items at retail.

Looking ahead, company chief Paul Raines stated GameStop is hopeful about seeing its fortunes rise on the back of ongoing demand for the Switch, the Xbox One X, new games, and new iPhones.

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