GameStop’s Earnings Continue to Disappoint After Holidays
The holidays are finally wrapping up and with them, companies are looking at its earnings. We know one thing -- GameStop is disappointed.
If anyone was concerned about GameStop's fail of a Q3 earnings roundup, it was probably right to be, considering how much money the company made over the holidays. Polygon reports that throughout the holiday season, GameStop made just under $3 billion. While this may sound like a lot of money, compared to last year's income, there was a 6.7% decline. and that's not something a company ever wants to have to deal with. There was also a decrease in sales of new hardware by 32%, which is quite a number.
There were a few good things about this year's sales, such as a 5.8% increase in software sales. Perhaps this had something to do with the 94.4% increase in the amount of current-gen games that are available. Companies are really taking advantage of the new technology that came out last year and putting it to use in its new games, which seems to have boded well for GameStop when it comes to software sales. There was also a 31.3% increase in new console hardware sales for the year, which kind of makes up for the 32% decrease that was previously mentioned.
It seems like GameStop's Q3 woes didn't stop with Q4 so, we're just going to keep up with the company in the new year and see how it does in Q1 2015.