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GameStop Profits Sink

GameStop Profits Sink

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Probably the biggest standalone video game retailer in the country, GameStop, is going through a hard time. Recently, the company has posted a sales loss of 3.1 percent over the past three months. In addition, net income was down almost twenty-five percent this quarter. What does this mean in non-business talk? GameStop is losing money.

Why are they losing money? Are they losing to their big competitors Best Buy and Amazon, or do people simply have less money to spend on things like video games these days?



Perhaps it’s simply a fact that times are changing. Maybe disc-based games are going the way of the dinosaur and downloadable games are the wave of the future. GameStop noted that digital download revenues were up sixty seven percent, which is a huge jump. In addition, used game sales were up twelve percent, which is also nothing to scoff at.

Now if only GameStop could sell used digital games. Hmmmm…

By Angelo M. D’Argenio

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