Gamestop is a major player in the games industry. By catering to gamers and non-gamers alike, and promoting used game sales, it's managed to do pretty well for itself.
Key word is managed. It seems that the company is in something of a financial kerfuffle.
Games Industry International
Yikes.
Now, it's not all doom and gloom. The company is expecting that the introduction of new consoles from Sony and Microsoft should increase game sales across the board. Still, the once mighty giant seems hobbled, if only just a bit.
So, what do you think? Is it Game Over for Gamestop? Or should I have asked, "Are they Gamestopped?"
Key word is managed. It seems that the company is in something of a financial kerfuffle.
GameStop made a loss of $269.7 million in fiscal year 2012 as its progress in digital markets failed to offset the attendant costs and the decline of physical retail.
For the fiscal year ended February 2, 2013, GameStop booked revenue of $8.89 billion, down 7 per cent year-on-year from $9.55 billion. Comparable store sales were down 8 per cent overall, with new hardware, new software and pre-owned sales all declining.
Only the company's "Other" category, which includes mobile and digital sales, showed signs of strong growth, rising 21.2 per cent year-on-year.
However, that didn't stop the company from making a full-year loss of $269.7 million, down from a $339.9 million profit in fiscal 2011. The year's loss included $680.7 million in, "restructuring, impairment and debt retirement expenses."
Yikes.
Now, it's not all doom and gloom. The company is expecting that the introduction of new consoles from Sony and Microsoft should increase game sales across the board. Still, the once mighty giant seems hobbled, if only just a bit.
So, what do you think? Is it Game Over for Gamestop? Or should I have asked, "Are they Gamestopped?"