Tag Archives: gme

GameStop Q4 results disappoint, moves to diversify

Video game retailer GameStop (GME) hit the reset button late Thursday, delivering lower-than-expected fiscal Q4 sales and earnings and offering disappointing 2015 guidance. GameStop plans to reduce its video-game-store count and increase the number of its stores that sell mobile devices and wireless plans. GameStop stock was down nearly 1% in morning trading on the stock market today, near 38.50. The Grapevine, Texas-based company earned $2.15 a share for the quarter ended Jan. 31, up 13% from the year-earlier quarter. Analysts polled by Thomson Reuters were expecting EPS of $2.17. Sales fell 5.6% to $3.48 billion. Wall Street was forecasting $3.6 billion. Growth in new game software and mobile and consumer electronics was offset by a decrease in game hardware sales the company said. For the current quarter, GameStop expects comparable store sales to rise 2.5% to 5.5%. It sees total revenue slipping 0.5%, based on the midpoint of its…

Most video game players still want physical discs

Console video game players by a wide margin still favor buying games on physical discs as opposed to digital downloads, a new survey shows. That’s good news for retailer GameStop (GME), which has been dogged by speculation that digital delivery of full console games will crush its business. A Piper Jaffray survey of 608 people who own next-generation consoles found that 75% preferred buying physical discs that can be traded vs. buying a digital copy. The survey also determined that 44% of next-gen console owners have never purchased downloadable content. The survey results suggest that the recent growth of digital downloads is likely to stall. “Publishers have suggested that 10-20% of certain titles have been purchased as full game downloads,” Piper Jaffray analyst Michael Olson said in a report Friday. “Early buyers of next-gen consoles (core gamers) should arguably be the group that is most apt to purchase full game…

GameStop rises on strong next-generation software sales

Video game retailer GameStop (GME) earned a power-up with its holiday sales report late Tuesday. Investors were enthused by strong sales of video game software in the December quarter. GameStop stock rose 12.4% to 36.84 in early afternoon trading in the stock market today. GameStop’s total global sales for the holiday period ended Jan. 3 were $2.94 billion, down 6.7% compared with the 2013 holiday sales period. GameStop’s (GME) sales were negatively affected by foreign currency exchange rates due to the strong dollar. In constant currency, GameStop’s holiday sales were down 4%. New software sales grew 5.8%, or 8.9% in constant currency. The growth was driven by software for Sony’s (SNE) PlayStation 4 and Microsoft’s (MSFT) Xbox One consoles, led by hot titles such as Activision’s (ATVI) “Call of Duty: Advanced Warfare,” Take-Two Interactive Software’s (TTWO) “Grand Theft Auto 5” and Ubisoft’s “Far Cry 4.” Sales of new hardware declined 32%…