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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?
(Score: 3, Insightful) by Freeman on Thursday April 04 2019, @04:27PM (2 children)
Even most of the PC games in store that provide physical discs are Steam editions of the game and require you to register with Steam. The era of physical distribution is all but gone for PC games. Which is why I love GOG so much. Their policy on distribution, the ease with which to backup the installers, and no need for a connection to their servers afterwards. I do have the GOG Galaxy client installed, but it's a convenience, not a burden. As opposed to Steam, where you Can start in offline mode, but after a while are forced to re-authenticate. GOG's Galaxy Client is a helpful aid, it provides on place to access all of your GOG games, an easy place to access your online Library, and only requires an internet connection for updating games, the client, or downloading more games.
Joshua 1:9 "Be strong and of a good courage; be not afraid, neither be thou dismayed: for the Lord thy God is with thee"
(Score: 0) by Anonymous Coward on Thursday April 04 2019, @10:20PM (1 child)
https://steam.fandom.com/wiki/List_of_DRM-free_games [fandom.com]
I agree. Steam and GoG is where it is at. But that is mostly because Gamestop basically just stopped carrying anything worth a damn in the PC sector. They used to have walls and shelves of the stuff. Now a small terrible selection that is usually a steam code in a box. After a couple of those I just skipped the middle man. Gamestop screwed up hard here. They should have never let another store in their door.
I still buy my physical movies and music. Because those services come and go and suddenly lost my movie/tvshow that I was watching (netflix has done this to me a few times now). Ultraviolet died too, disney saw to that to replace it with their own. I could at this point never buy another cd/movie and still take years to watch what I have.
(Score: 2) by Freeman on Friday April 05 2019, @03:19PM
GameStop stopped carrying anything beyond a tiny shelf of stuff over a decade ago in my area. My guess is that Steam just straight up killed off physical distribution. The only place I go anymore that has true physical disc PC games is Half-Price Books, for used PC games. You can obviously get old games on physical disc through places like E-Bay as well.
Joshua 1:9 "Be strong and of a good courage; be not afraid, neither be thou dismayed: for the Lord thy God is with thee"