GameStop Suffers Another Sales Loss

[Andy Chalk]

GameStop Suffers Another Sales Loss

GameStop's sales slipped by nearly seven percent in the first quarter of 2013 but the overall decline of the industry means the company actually saw its market share increase.

Videogame retail giant GameStop reported sales of $1.87 billion for the first three months of its 2013 fiscal year, a decline of 6.8 percent over the same quarter in 2012, during which it hit $2 billion in sales. While overall sales were down, mobile sales were up a whopping 290 percent to $46.8 million and digital sales were up 47.3 percent. Net earnings for the quarter were $54.6 million, compared to $72.5 million in the first quarter of 2012.

GameStop said its "topline sales continue to be impacted by the late stage effects of the current console cycle," a point reflected by the nature of the decline. New software sales were down 3.8 percent in the quarter while preowned software dropped by 7.5 percent, but new hardware sales were down an alarming but not surprising 30.6 percent.

It's easy (and for some people, fun) to predict doom and gloom for GameStop, but even though it faces continuing challenges from an increasingly-digital market, I think a relatively minor decrease in sales at this point in the console cycle is likely good news for the company. New console sales are bound to slow down dramatically as consumers wait for the next generation to arrive and the current generation to drop in price, and the real surprise here is that the dropoff wasn't more dramatic.

GameStop also reported that thanks to a much more dramatic overall decline in new game sales of 14.2 percent in the U.S., its market share actually increased and now sits at 47.7 percent of new Xbox 360 and PlayStation 3 software.


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[Daymo]

So they did good compared to everyone else. As long as they keep enough market power to make Microsoft keep backpedaling up until the launch of the Xbone, I'll be happy.

 

[1337mokro]

Gamer's everywhere cheered for the suffering this demonic giant of retail exploitation suffered. You can get used games ANYWHERE else, so not even that is worth going to gamestop and supporting this bottom feeding pimp of brick and mortar videogaming.

Oh wait they didn't make a loss? Well fuck guess we will have to continue with the gamestop bullshit.

 

[Trishbot]

Gamer's everywhere cheered for the suffering this demonic giant of retail exploitation suffered. You can get used games ANYWHERE else, so not even that is worth going to gamestop and supporting this bottom feeding pimp of brick and mortar videogaming.

Oh wait they didn't make a loss? Well fuck guess we will have to continue with the gamestop bullshit.

Mad they wouldn't give you more than $4 for your five year old game?

They're not nearly as evil as people like to think they are. Almost everyone who attacks them usually had a bad experience with their admittedly lax employees. I've never had a problem with them.

I just like how people act "upset" that they only get $4 for your old games... like they have NO alternates to sell this game on Amazon, Ebay, or dozens of other used-market options.

Still, with the Xbone being so anti-consumer and anti-used games, I hope Gamestop gets enough leverage to forced them to either drop the whole stupid idea, or cause them financial hardship when that avenue of getting games is cut off. (or PS4 takes their place)

 

[TwoSidesOneCoin]

Lol, my only thought going into this was as follows: "Oh, they are doing alright because they're market share went up? Someone hasn't been watching the xbone reveal!"

 

[GAunderrated]

Gamer's everywhere cheered for the suffering this demonic giant of retail exploitation suffered. You can get used games ANYWHERE else, so not even that is worth going to gamestop and supporting this bottom feeding pimp of brick and mortar videogaming.

Oh wait they didn't make a loss? Well fuck guess we will have to continue with the gamestop bullshit.

Funny thing is while I agree that gamestop's business model is about f'ing customers over, the truth is publishers have become even bigger dicks than gamestop these past 4 years which is really saying something. I actually have less of a problem giving Gamestop my business (when its a good deal) rather than supporting practices by major publishers.

 

[Kinitawowi]

I just like how people act "upset" that they only get $4 for your old games... like they have NO alternates to sell this game on Amazon, Ebay, or dozens of other used-market options.

Still, with the Xbone being so anti-consumer and anti-used games, I hope Gamestop gets enough leverage to forced them to either drop the whole stupid idea, or cause them financial hardship when that avenue of getting games is cut off. (or PS4 takes their place)

You do realise that the entire point of the Xbone's schtick is to grab leverage back from Gamestop, right?

The way I've always seen it, Gamestop (and their nearest UK equivalent, Game) have a particular responsibility in gaming; to promote gaming on the high street and keep it relevant and in the public eye. That means selling the newest games and supporting the indie market. It doesn't mean making preowned games their entire fucking business model (Game employees are specifically instructed to prioritise the sale of used games over new). That's what Microsoft are trying to stop. They don't particularly mind people lending games to their mates, even though it's technically against most EULAs and has been for a while (Wipeout 2097 prohibited unauthorised lending, and that was way back in 1996), because that helps with word of mouth and nobody's making more money out of it for the most part. But when the nation's biggest brick-and-mortar game retailers are prioritising resale, the system has a problem. Microsoft didn't want to stop you lending to your mates; that was just hideously unfortunate collateral damage from the attack on their main target.

 

[Something Amyss]

They're not nearly as evil as people like to think they are. Almost everyone who attacks them usually had a bad experience with their admittedly lax employees. I've never had a problem with them.

They're also kind of an inevitability of the shitty way game sales are treated. They're a poor product to sell, and you sneed some other way to make them profitable. Most places opt for loss-leader models, but that requires other stuff.

They don't particularly mind people lending games to their mates, even though it's technically against most EULAs and has been for a while (Wipeout 2097 prohibited unauthorised lending, and that was way back in 1996), because that helps with word of mouth and nobody's making more money out of it for the most part.

"Unauthorised lending" has been around for decades and doesn't actually refer to giving a buddy your disc.

But when the nation's biggest brick-and-mortar game retailers are prioritising resale, the system has a problem.

It does indeed. Maybe Microsoft and company should work on making new game sales a viable business model for retail, instead of screwing them on the markup then punishing them for still trying to make money.

That's not to say that Gamestop is some saint or hero in this story. Far from it. It's just funny that when we're talking about a broken system, we rarely look at the part of the system that broke it in the first place.

In this battle of two evils, I actually sort of root for Gamestop, because their pull is one of the few things that can actually stop the erosion of our rights as gamers. Not that I'm under an illusion that this is done altruistically, mind.

 

[xPixelatedx]

I really hope Gamestop goes under one day. I would have never had a problem with them if they didn't "Blockbuster" all over my pants! WTF MAN!?

Those asses came in and demolished every other game exchange store in our area, literally buying them out and replacing them with new Gamestops like a spreading cancer. Some of these places where AMAZING stores; carrying games from every generation and crazy stuff like you'd find at Think Geek. One was called Software Etc., and ours would even import consoles from japan before they released here and allow people to play them. They also let you return bran-new games you opened and didn't like. Read that several times before it sinks in. Fuck Gamestop for killing places like that and basically replacing them with the McDonalds of gaming. I've never even been in a Gamestop that didn't look like it was from the ghetto. The floors are always dirty as shit, the shelves are always a mess, and everyone at the counter is trying to sell me shit I don't want like I'm at some kind of flea market. I honestly wouldn't be surprised if they were having cockfights and selling meth in the back.

 

[aba1]

Gamer's everywhere cheered for the suffering this demonic giant of retail exploitation suffered. You can get used games ANYWHERE else, so not even that is worth going to gamestop and supporting this bottom feeding pimp of brick and mortar videogaming.

Oh wait they didn't make a loss? Well fuck guess we will have to continue with the gamestop bullshit.

Mad they wouldn't give you more than $4 for your five year old game?

They're not nearly as evil as people like to think they are. Almost everyone who attacks them usually had a bad experience with their admittedly lax employees. I've never had a problem with them.

Me neither I don't really get it. If you don't like what they will give you for the games just don't sell them there it isn't like you can't sell games in like a trillion other places.

Besides retail doesn't hurt anything it offers jobs to people in a world where we have less and less jobs and more and more people.

 

[1337mokro]

Gamer's everywhere cheered for the suffering this demonic giant of retail exploitation suffered. You can get used games ANYWHERE else, so not even that is worth going to gamestop and supporting this bottom feeding pimp of brick and mortar videogaming.

Oh wait they didn't make a loss? Well fuck guess we will have to continue with the gamestop bullshit.

Mad they wouldn't give you more than $4 for your five year old game?

They're not nearly as evil as people like to think they are. Almost everyone who attacks them usually had a bad experience with their admittedly lax employees. I've never had a problem with them.

Actually I never ever shopped there. Haven't even set a foot in one of their stores mostly because they are nowhere present in my country. So yeah... don't you feel silly for jumping to conclusions?

What I do have is allot of people that worked there who have told me about their shady backroom practices and the strong arming involved in games sales.

Also why do you feel the need to protect a company who adopts a business practice of paying people on average 2% of the price they sell the game you just sold to them? It's not even a quarter or half like some other stores do. Why support them when you could take your game to other people who not only pay you more money, but don't try to jam a subscription down your throat when you buy your pre-owned game that is an entire 2$ cheaper than the new copy?

Gamer's everywhere cheered for the suffering this demonic giant of retail exploitation suffered. You can get used games ANYWHERE else, so not even that is worth going to gamestop and supporting this bottom feeding pimp of brick and mortar videogaming.

Oh wait they didn't make a loss? Well fuck guess we will have to continue with the gamestop bullshit.

Funny thing is while I agree that gamestop's business model is about f'ing customers over, the truth is publishers have become even bigger dicks than gamestop these past 4 years which is really saying something. I actually have less of a problem giving Gamestop my business (when its a good deal) rather than supporting practices by major publishers.

The lesser of two evils is still fucking evil. If you want to fight publishers here is what you do.

Don't pre-order. Don't buy the exclusive edition. Don't buy a game that you have not been able to pirate if there has not been any demo released. Don't buy the season pass. Wait. Let em sweat those first few precious sales week where they decide whether a game is a success or not.

If you really want to get back at publishers don't do any of the crap you have been doing up to now. What you don't do is feed the giant monster that is Gamestop with your money because you enjoy how they strong arm publishers. Do you think Gamestop gives a shit about you? No they will just as easily sell that shitty game they got in the back to any unwitting customer as would the publisher.

This is not power rangers, if two monsters try to tear each others throats out in your neighbourhood your house will get stomped on. I bet you didn't expect me being able to reference power rangers that easily

 

[Glaice]

Those asses came in and demolished every other game exchange store in our area, literally buying them out and replacing them with new Gamestops like a spreading cancer. Some of these places where AMAZING stores; carrying games from every generation and crazy stuff like you'd find at Think Geek. One was called Software Etc., and ours would even import consoles from japan before they released here and allow people to play them. They also let you return bran-new games you opened and didn't like. Read that several times before it sinks in. Fuck Gamestop for killing places like that and basically replacing them with the McDonalds of gaming. I've never even been in a Gamestop that didn't look like it was from the ghetto. The floors are always dirty as shit, the shelves are always a mess, and everyone at the counter is trying to sell me shit I don't want like I'm at some kind of flea market. I honestly wouldn't be surprised if they were having cockfights and selling meth in the back.

Stuff like this is why I don't purchase from them anymore but thankfully there is a Play N' Trade in my town which I actually like and buy from them from time to time, the employees are cool and I usually converse with them whenever I come in.

 

[GAunderrated]

The lesser of two evils is still fucking evil. If you want to fight publishers here is what you do.

Don't pre-order. Don't buy the exclusive edition. Don't buy a game that you have not been able to pirate if there has not been any demo released. Don't buy the season pass. Wait. Let em sweat those first few precious sales week where they decide whether a game is a success or not.

If you really want to get back at publishers don't do any of the crap you have been doing up to now. What you don't do is feed the giant monster that is Gamestop with your money because you enjoy how they strong arm publishers. Do you think Gamestop gives a shit about you? No they will just as easily sell that shitty game they got in the back to any unwitting customer as would the publisher.

This is not power rangers, if two monsters try to tear each others throats out in your neighbourhood your house will get stomped on. I bet you didn't expect me being able to reference power rangers that easily

To be honest I don't pre-order, buy season pass, exclusives, etc. However, I still don't want to give publishers any money if they support anti-consumer practices.

Gamestop is still evil and I don't care to support them but again I don't support their main money making since I don't trade in games. If I find a good deal then I will buy used there but I think I might have to highlight this since you missed it last post.

As of right now Publishers are actively hurting the game industry far more than Gamestop can right now. Let that sink in for a minute. If you would have told me that 5 years ago I would have said bullshit. However, as of right now gamestop is the lesser evil by virtue of just not trying to outdo their evil crap.

Of course I think I have to clarify that if I can avoid supporting either I will (through amazon and ebay mostly) and do more often than not. Come to think of it I haven't bought anything from gamestop in a few years but the point still stands that if I had to give money between gamestop and publishers I am more willing to give it to gamestop.

 

[Trishbot]

I just like how people act "upset" that they only get $4 for your old games... like they have NO alternates to sell this game on Amazon, Ebay, or dozens of other used-market options.

Still, with the Xbone being so anti-consumer and anti-used games, I hope Gamestop gets enough leverage to forced them to either drop the whole stupid idea, or cause them financial hardship when that avenue of getting games is cut off. (or PS4 takes their place)

You do realise that the entire point of the Xbone's schtick is to grab leverage back from Gamestop, right?

The way I've always seen it, Gamestop (and their nearest UK equivalent, Game) have a particular responsibility in gaming; to promote gaming on the high street and keep it relevant and in the public eye. That means selling the newest games and supporting the indie market. It doesn't mean making preowned games their entire fucking business model (Game employees are specifically instructed to prioritise the sale of used games over new). That's what Microsoft are trying to stop. They don't particularly mind people lending games to their mates, even though it's technically against most EULAs and has been for a while (Wipeout 2097 prohibited unauthorised lending, and that was way back in 1996), because that helps with word of mouth and nobody's making more money out of it for the most part. But when the nation's biggest brick-and-mortar game retailers are prioritising resale, the system has a problem. Microsoft didn't want to stop you lending to your mates; that was just hideously unfortunate collateral damage from the attack on their main target.

No, you are incorrect.
What Microsoft "entire schtick" is NOT to grab leverage back from Gamestop. It's to grab leverage back from YOU. You, the customer. You, the one with the legal right to resell your game. If not to Gamestop, then to Amazon, or on Ebay, or on Craig's List, or to whomever you desire. They don't want anyone else, not Gamestop and not YOU, making money off a used game sale. It literally is stamping all over your First Sale Doctrine rights as a consumer.

Gamestop is a business that has NO responsibility other than "supply and demand". If there is a demand for USED games (and there is a THRIVING market for it), they will sell it to you, and they have absolutely every protected right to prioritize used games over new games... but they can't HAVE a used game without having sold copies of NEW games, and those new games are 100% paid for already. There are ENTIRE game shops, including mom & pop shops, that do nothing but sell used games (because, big shock, a lot of games that are older than two years old are ONLY used, especially anything from the PS2-era back down to the PONG era).

You BET YOUR ASS Microsoft is upset that people lend a game to their mates. In fact, some stupid publishers (I believe Activision) even outright stated that loaning a game to a friend is "robbing" them of money. Beyond that, Microsoft just PISSED OFF the ENTIRE indie market by denying them any ability to self-publish (thus there is NO reason for them to go to Microsoft rather than Sony, Steam, or even Wii U).

Also, PLEASE do some research on your own protected legal rights. NO COURT has ever accepted EULAs as binding or lawful, because every law in place says the terms of service must always be made clear and evident to a customer PRIOR to completion of a sale, and EULAs don't do this. In fact, the ENTIRE continent of Europe has ruled EULAs as invalid and unlawful and affirmed customer's rights to own, resale, loan, and give out the games and content they have purchased, regardless of any TOS or EULAs that any companies put in a product.

Just because a big company SAYS it's a "license" is not necessarily true, and the courts system has reaffirmed this time and again. The saying "it looks like a duck, it moves like a duck, and it quacks like a duck" applies to a sale as well, and games have be ruled as "sales" and not "services" in court time and again, regardless of company PR and EULAs claiming otherwise. Vernor v. Autodesk affirmed this. MYD vs. Blizzard affirmed this. UMG v. Augusto affirmed this. The Electronic Frontier Foundation affirmed this. The ENTIRE European Union affirmed this.

Don't believe what a company tells you and tries to bully you into accepting. You have protected legal rights, and these include the right to resale the games you OWN (and you own them, not "license" them) to whomever you want for whatever price you wish to ask, and companies can be as butthurt about it as they want but, too bad, that's your right as a consumer.

 

[Ratties]

Gamer's everywhere cheered for the suffering this demonic giant of retail exploitation suffered. You can get used games ANYWHERE else, so not even that is worth going to gamestop and supporting this bottom feeding pimp of brick and mortar videogaming.

Oh wait they didn't make a loss? Well fuck guess we will have to continue with the gamestop bullshit.

Mad they wouldn't give you more than $4 for your five year old game?

They're not nearly as evil as people like to think they are. Almost everyone who attacks them usually had a bad experience with their admittedly lax employees. I've never had a problem with them.

Really cool about Gamestop? Oh there is nothing better than them giving you the wrong game twice in a row. Know how they sold my friend a game that was so marked up with scratches, you couldn't play it. Even when they take a used game, then turn around and sell it for 50 bucks. You know how they have to harass you by offering you a bunch of bullshit deals you don't want. "Do want to sign up for our members only players card"? "Alright, I just want to buy this game." Know if you sign this sheet, then we can spam fuck your email account with our amazing deals." "Even though that sounds good, I just want to buy the game." "Real good deal, we are offering the chance to partake in our amazing raffle so you can win a shirt you don't want." "For fuck sakes, I just want to buy this game." I come home with the game. Eventually find out they gave me the first one, instead of the second one.

"Let your inner warrior take flight when you pre-order this stupid game and get a free hat." "Gamestop, power to the players."

 

[1337mokro]

As of right now Publishers are actively hurting the game industry far more than Gamestop can right now. Let that sink in for a minute. If you would have told me that 5 years ago I would have said bullshit. However, as of right now gamestop is the lesser evil by virtue of just not trying to outdo their evil crap.

Why not give it to e-bay... why give it to gamestop? You pretend like there is no choice there but I will guarantee if there is a Gamestop copy there is also an e-bay copy. Not to mention the hundreds of sites online selling retail copies below even used price on day one.

Like I said two evils. Still evil. Supporting one is never justified just to kill the other. You can stoop to the same level to kill it sure, but making one evil bigger so it can strong arm the other is not a solution you will just end up with a battered monster and one stronger than it was before conspiring together.

If you had told me that 5 years ago I would have told you the shit storm was a coming. I can't really see how the recession year would have been in anyway a good year to be hopeful about the games industry.

 

[dyre]

The console cycle issue has traditionally meant a decrease in sales towards the end of the console cycle as gamers and publishers wait for new consoles to come out, so it's not that surprising. I believe publishers are expected to see similar decreases in sales. I guess the real question is whether the new batch of consoles will restore interest in retail sales.

Btw, some of you guys need to chill out. Gamestop's not "evil;" none of its business practices harm anyone in any meaningful way. They're not exactly forcing underpaid laborers to work in unsafe factories, as far as I know. Some of their policies leave something to be desired, though I'm honestly not sure if that's actual store policies of just their bad luck in somehow only finding annoying people to be their employees.

 

[SadisticFire]

Actually I never ever shopped there. Haven't even set a foot in one of their stores mostly because they are nowhere present in my country. So yeah... don't you feel silly for jumping to conclusions?

Shouldn't that mean you should...you know. Not make an opinion? Just my thought.

At any rate, I can't say I care too much. I mean it'll probably suck to me as a consumer as I can't get games anywhere else that I know of, other than the internet.