GameStop posts first sales increase in five quarters

Alan Olson
May 26, 2017

"Whenever there's a launch of a highly-allocated product, like the Switch, it's hard for Nintendo to allocate at our fair market share", Bartel said.

"Our first quarter results reflect the power of our leadership position within the video game market and our ongoing diversification efforts", said CEO Paul Raines.

The Nintendo Switch saved GameStop's quarter, as expected, but strong performance there didn't blind investors against the problems elsewhere in the company. The company also saw its digital sales rise 3% in the quarter.

Nintendo itself has seen its stock soaring since the launch of Switch. The retailer was able to sell 1.2 million Switch consoles in the United States within two months of its availability. Nintendo Switch is benefiting not just its makers, but also multiple retailers that had always been struggling to boost sales.

Overall, U.S. store sales were down 3.2% for the quarter, but global sales more than made up for it, with a 17.1% jump.

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Sales at those stores jumped 21.5% in the latest quarter but only made up 10% of total revenue. Switch sales spurred hardware numbers to a 24.6%, but new software was down 8.2% compared to the same period a year ago.

"We are all veterans of the Wii launch". "For those fans who are still looking for the Nintendo Switch, don't worry-we're getting more". He also said that "there is a contest among all the retailers, online and in store, with our good friends at Nintendo".

Shares of GameStop sunk around 6% to $22.20 in after-hours trading. GameStop said that decline is due to "tough overlap" with games released during the same period previous year, which included releases such as Dark Souls III, The Division, and Street Fighter V.

Although that seems like a disappointing thing for GameStop, there's actually something good to come out of it. The Legend of Zelda: Breath of the Wild sold 2.8 million in the same period, which is even higher than the sales of the console on which it can be played.

Although GameStop benefited from sales of the highly sought after Switch console in the first quarter, its forecast reflected the lack of insight into shipments of the consoles for the rest of the year, the company said.

Other reports by GlobalViralNews

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