September 4, 2014 Leave a comment
As long as people want new game consoles, GameStop will be in business. The video game seller is seeing a major increase in revenue, and it’s all due to the popularity of the recently released PlayStation 4 and Xbox One.
Total global sales for the company’s second quarter exceeded $1.7 billion, a 25% bump from sales this time last year. Sales per store grew more than 20%, and GameStop’s shares went up 144%.
Because of weak sales at the start of 2014 and a very dismal holiday season the year prior, GameStop was expecting –and preparing for – a very bad year. With Sony’s online streaming service and Xbox Live members able to buy games online, retailers like GameStop are slowly becoming redundant and facing the same fate that fell upon book and record stores.
One thing the company didn’t count on is the popularity of brand new game consoles. As long as gamers want the latest and greatest in video game devices, it looks like shops like GameStop still have a chance of surviving and thriving. These latest numbers prove that. And when people come to buy consoles, they are likely pick up games, too. GameStop saw an increase in sales for popular games like Mario Kart 8, along with a 5.5% increase for their pre-owned games (which is popular with their loyal customer base).
GameStop CFO Rob Lloyd is now focusing on marketing the items they know their clientele will salivate over.
“The second quarter demonstrates the power of the new console cycle and all of our business units, including Technology Brands, positively contributing to the company’s sales and profits,” he said. “The back half of the year is filled with exciting games and products coming to market and I am confident that we are prepared to capitalize on these opportunities.”