GameStop, video game retail giant, unveiled earnings for the quarter ended Oct. 31 on Nov. 23. The earnings revealed mixed successes and failures.
According to the released report, total global sales fell 3.6 percent to $2 billion, whereas profit was $55.9 million from $56.4 million attained last year at the same time. New hardware sales declined by 20.4 percent, while software sales decreased by 9.3 percent.
The retail giant partly attributed the annual decline in sales to a stiff comparison with the same quarter in 2014, a time when big games like Destiny and Super Smash Bros were launched, Gamespot reported.
The retailer's pre-owned sales increased by 0.6 percent, attributed partially to sales of pre-owned PS4 and Xbox One hardware and games. Without factoring in the effect of foreign exchange rates, this would be the seventh straight quarter whereby GameStop's pre-owned business exhibited a growth.
Digital sales were another area that GameStop saw growth. Sales in this area are reported to have increased by 8.7 percent to $228.6 million. "Destiny: The Taken King" led to the success in digital sales. The video game retail giant as well noted that its digital business is on route to surpass $1 billion during the financial year.
GameStop's non-gaming technology brands like Cricket Wireless, Spring Mobile, and Simply Mac, posted strong results, with revenue going up by 64.2 percent. During the unveiled quarter, GameStop opened 105 new technology brand outlets.
Other divisions including collective products from ThinkGeek, acquired earlier this year, went up by 60.8 percent, according to a different report by the same publication. Reportedly, collective merchandise sales are on track to hit the retailer's goal of $300 million in the financial year.
In a statement, GameStop CEO Paul Raines said, "Our third quarter results were at the low end of our guidance range due to lower-than-expected new software and hardware sales and delays in Technology Brands store openings."
The CEO added that the retailer's expectations for the full fiscal year have not changed. As GameStop looks forward to the fourth quarter, a solid slate of new video games, together with contributions from the firm's diversified AT&T, ThinkGeek, and Apple business, as well as in-house collectibles offerings should drive the fourth quarter results.
GameStop does much of its total yearly business during the holiday quarter currently underway. Apart from sales for new releases this holiday, GameStop's Black Friday deals commence this week.
Here is an official trailer for "Destiny: The Taken King" driving GameStop's digital sales.