GameStop posts $488 million loss for last quarter

[steven36]

GameStop is in trouble.

 

 

Every year, publishers reveal figures on physical and digital game sales. While in 2013 physical sales were going strong, digital sales have slowly taken over and now account for a massive chunk of the market. In many cases, certain developers — like those behind Earthfall — are releasing cheaper digital copies on platforms like the the Microsoft Store. It's hard to deny that there is a massive shift.

While digital stores are thriving, companies like GameStop aren't doing so well. According to a report by Game Rant, GameStop "reported a loss of $488 million in the third quarter of 2018 despite solid growth from hardware sales and accessories."

 

While the gaming industry is booming, it seems like pre-owned games aren't at all. The report stated that GameStop said there was a 13.4 percent decline in pre-owned sales. This might be due to the fact that a lot of gamers are buying digital copies that can't be traded. However, it might also be due to the fact that gamers are unsatisfied with the discounts GameStop offers on used items. No specific reason was given during the earnings call.

 

GameStop has recently ventured into publishing games and selling collectibles to increase profits, but game sales are still its bread and butter. We'll have to see what the future holds, but this trajectory is definitely not good for the company.

 

Source

[mjall]

makes sense, most people buy digital games now on steam, Origin and other platforms