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Even next-gen consoles can't save GameStop's 2013 fiscal year
Even next-gen consoles can't save GameStop's 2013 fiscal year
March 27, 2014 | By Mike Rose

March 27, 2014 | By Mike Rose
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    3 comments
More: Console/PC, Business/Marketing



Thanks to sales boosts from the PlayStation 4 and Xbox One launches, GameStop today celebrated a minor increase in earnings for the 2013 fiscal year -- but the company still missed its fourth-quarter expectations.

The company said that the launch of the new consoles at the end of 2013 helped GameStop's market share reach an all-time high, and has "re-energized" the video game category.

For the fiscal year ended February 1, 2014, GameStop posted global sales of $9.04 billion, up 1.7 percent year-over-year, driven primarily by a 29.7 percent increase in new video game hardware sales.

Meanwhile, net earnings were $354.2 million, compared to net losses of $269.7 million year-over-year. Notably, new video game software and pre-owned sales still declined by 2.8 percent and 4.1 percent respectively for the full year, while digital sales increased by 15.1 percent to $724.4 million.

And GameStop's mobile and consumer electronics sales up were 51.6 percent year-over-year. Regardless, the company missed its earnings expectations for the fourth quarter, and its share price fell early this morning.

For the current fiscal year, GameStop expects to see sales growth of between 8 and 15 percent, and profits of between $398 million and $433 million.


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Comments


Dave Bellinger
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I'm not really business oriented, but the headline is a little sensationalist, isn't it? Isn't this a record-setting year for GameStop?

Jeffrey Baker
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You hit the nail on the head Dave.

Poor, poor, GameStop only going to make 400+ Million in profit. While game companies are closing and letting good people go. Canít wait till the day GameStop goes the way of TowerRecords.

John Maurer
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The article labors under the idea that they need to change their business model in order to survive, and many out their are expecting them to go boom because they still do business the same way they did in the 90's.

That maybe true, downloading games has definitely begun trending, but most console owners still prefer physical media, particularly for new titles; compare sales for digital & retail on new titles and you'll see what I'm talking about. I've downloaded quite a bit of games on console myself, but they are almost all older games or games that did not see a retail release, such as Strider.

I really don't see them going out of business until larger publishers decide that they are finished with retail.


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