Xbox One/PS4 Significantly Outpacing Xbox 360/PS3 So Far, GameStop Says: Retailer GameStop today reported earnings for its third quarter ended November 1. While the report includes all the details youd expect from a quarterly earnings statement, it also features on particularly interesting data point that speaks to just how successful the Xbox One and PlayStation 4 performed during their first year on the market. GameStop reports that since the Xbox One and PS4 launched in November 2013, the installed base of those platforms in the United States is a healthy 73 percent greater than the Xbox 360 and PS3 base was over the same period of time years ago. This is roughly the same trend EA disclosed this week.Unitys delay hurt GameStops bottom line So as you might expect, GameStops new hardware sales are booming. The company saw sales in this category rise 147.4 percent for the period, fueled no doubt by Xbox One and PS4. New software sales fell 34.4 percent, however. GameStop attributed the downturn to a tough comparison to last year, when AAA games such as Grand Theft Auto V, Battlefield 4, Batman: Arkham Origins, Pokemon X/Y, and Assassins Creed IV: Black Flag were all released. Despite the downturn, GameStop says it commands 47.3 percent of the new software marketshare. GameStop also says its sales this quarter were negatively impacted by the delay of Assassins Creed Unity, which was released on November 11 (outside of the third quarter reporting period) after it was originally targeted to launch in late October. Overall sales for the period came in at $2.09 billion, a slight decline of .7 percent compared to $2.11 billion this period last year. Comparable store sales fell 2.3 percent, though again, GameStop says this is primarily due to Unitys delay from October to November. On the brighter side, GameStops all-important pre-owned category tallied its third straight quarter of positive growth, rising 2.6 percent. GameStops mobile and consumer electronics businesses also grew year-over-year, rising 125 percent in part due to strong results from Spring Mobile. GameStops digital business was also a bright spot during the quarter. Digital sales rose 52.4 percent to $210.3 million. This was led by growth of DLC, platform currency, and other digital content. GameStop also reports that its mobile app now has 6 million installs, and that 69 percent of visits to GameStop come from a mobile phone or a tablet. Overall, most of our major product categories performed very well, but our third quarter results were impacted by Assassins Creed Unity moving out of October, GameStop CEO Paul Raines said in a statement. In terms of profit, GameStop posted net earnings of $64.3 million, compared to $68.6 million this quarter last year. The company points out, however, that it recorded a non-recurring charge of $13.9 million related to the sale and shutdown of certain business operations, which impacted earnings. We have followed up with GameStop for clarification on what business operations it shuttered in the quarter, or if this is tied to the previously announced shutdown of Spawn Labs. Since GameStops third quarter ended November 1, sales of huge games such as Call of Duty: Advanced Warfare, Dragon Age: Inquisition, Grand Theft Auto V (Xbox One, PS4), Far Cry 4, Super Smash Bros. for Wii U, and Pokemon Omega Ruby/Alpha Sapphire are obviously not included. GameStop will hold an earnings call with analysts and media today starting at 2 PM Pacific / 5 PM Eastern. Check back soon for more. Got a news tip or want to contact us directly? Email news@gamespot
Posted on: Thu, 20 Nov 2014 22:04:56 +0000
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