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posted by mrpg on Thursday April 04 2019, @10:37AM   Printer-friendly
from the game-over? dept.

GameStop Posts Massive Loss as Pre-Owned Game Sales Plummet:

One of the world's biggest video game retailers just announced its worst annual performance in decades, raising renewed questions about the health of the physical video game market as downloadable games continue their ascent. Net sales for GameStop were down 3 percent for the 52-week period ending February 2, a slide that helped flip last year's modest $34.7 million profit to a sizable $673 million operating loss. On top of that, the company expects sales to decline another 5 to 10 percent in the next fiscal year.

GameStop's massive loss is the largest ever reported by the company, and only the third annual loss since it grew out of the corporate remains of FuncoLand in 2000. GameStop last posted a loss in 2012, when it lost nearly $270 million thanks in part to weak holiday sales near the end of that era's console generation.

But more than the amount, the reason behind the new loss could be cause for long-term concern at the retailer's thousands of worldwide storefronts. While hardware sales were roughly flat and new software sales fell about 4 percent year over year, pre-owned software sales cratered nearly 12 percent for the year, continuing a years-long slide.

GameStop has always relied on the high margins of buying low and selling high on used game discs to buoy an otherwise low-margin business. But the rise of downloadable games, which can't be resold, has taken the wind out of those sails to a large extent. "We continue to see declines in pre-owned software, reflecting the decline in sales of new physical games and the increasing demand for digitally offered products," GameStop COO & CFO Robert Lloyd said in an earnings call.

I'm curious how many Soylentils still prefer to buy their games on physical media and who prefers a digital distribution. What's your motivation? Also, what if anything, can Game Stop do so as to continue as a going concern?


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  • (Score: 5, Funny) by VLM on Thursday April 04 2019, @01:52PM (2 children)

    by VLM (445) Subscriber Badge on Thursday April 04 2019, @01:52PM (#824482)

    The personal service and chatter over the counter.

    That's well intentioned meme advice that doesn't actually work in retail.

    "Everyone knows" that "everyone loves" that old fashioned hardware store with old retired tradesmen who actually know what they're doing giving advice on product selection and use. The reality is they all went out of business because actual real world shoppers where the rubber meets the road love saving 25 cents at Home Depot while "interacting" with 17 year old store employees who don't even speak English and don't know which end of the hammer to hold.

    When I was a kid I was a minimum wage shelf stocker at a grocery store and we'd have older women ask dumb cooking questions as if a high school boy can handle cooking beyond a TV-dinner level. At the time we laughed at the situation, but in retrospect those chicks were almost certainly MILF cougars looking for action. I guess GS should hire the hottest athletic male employees who can still spell "GTA" in order to lure in the "cool wine aunts" shopping for nephew's bday gifts. Sorta like a Hooters but for middle aged post-wall straight women customers, I guess. The image of younger me, in a tiny speedo, flexing my muscles for some cool wine aunt, while trying to upsell her on extended warranties, is disturbing, clearly I need more caffeine or less or something...

    Also gaming is too big of a hobby for even the most devoted employee to have anything useful to say other than trivialities about the top trendiest game of the month, at best. I can read the package and ads as well or better than a retail service drone, but I can get way more info online.

    I guess an even more cutting analogy is nobody wants Microsoft Clippy to invade and interfere with their online store, and frankly Clippy would be more intelligent to talk to than most underpaid retail employees.

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  • (Score: 0) by Anonymous Coward on Thursday April 04 2019, @03:40PM

    by Anonymous Coward on Thursday April 04 2019, @03:40PM (#824528)

    I admire your depressing apathy, but you're wrong.

  • (Score: 0) by Anonymous Coward on Thursday April 04 2019, @07:00PM

    by Anonymous Coward on Thursday April 04 2019, @07:00PM (#824639)

    with 17 year old store employees who don't even speak English and don't know which end of the hammer to hold.

    Ahhhh there is the good ol' racism peaking out again. Odd how racists tend to work their fucked up hatred into just about every conversation.

    GOOD JOB FUCKWIT!

    My guess is you get pegged as an asshole and those 17 year old kids say to themselves "fuck this guy, I NO SPEAKEE ENGLISH!" cause they know you'll assume their brown skin means they are telling the truth.