Further declines in video game sales offset Best Buy Q4 revenue

Revenue from video game sales continued to decline for major electronics retailer Best Buy in the fourth quarter of the previous fiscal year, offsetting sales growth elsewhere for the company. Although the company saw revenues increase by 3 percent to $16.6 billion year-over-year for the quarter, it said that "industry softness in gaming" had caused a further decline in video game sales. Increases in revenue from strong sales of smartphones, tablets and ereaders were offset by comparable declines in gaming, notebooks and televisions, said the company. As part of the company's financial results, it also revealed plans to close 50 U.S. "big box stores" during the next fiscal year as part of a multi-year cost reduction program, with around 400 jobs to be lost in corporate and support areas. For the three months ended March 3, 2012, Best Buy's Entertainment segment, which includes video games, saw a decline in sales of 21.0 percent year-over-year. Overall, the company posted losses of $1.2 billion for the full fiscal year, compared to $1.3 billion profit year-over-year. The diminished video game sales continue a downward trend in Best Buy's recent quarterly reports, with declines of video game sales also shown in previous quarters.