Pain and Anguish: GameStop Reports $270M Net Loss

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News Posted: Fri, Mar 29 2013 4:01 PM
Ouch. There just aren't too many other ways to say it. As the video game world enters a period of rapid transition, the old players are starting to show signs of wear. The home console market just isn't what it used to be, and neither is the importance of physical media and retail shops. As more and more gamers find their fix in mobile gaming, it's getting tougher for the mainstays to remain relevant. GameStop is a company in search of its next move, and it's losing a lot of money as it tries to find it.


The company's Q4 2012 earnings saw a loss of $270 million, on sales of $3.56 billion. Consolidated comparable store sales decreased 4.6% compared to the prior year quarter, while Q4 sales were relatively flat year-over-year. The company included 60.3% growth in digital receipts and $100 million of mobile sales offsetting weakness in the core business. Paul Raines, chief executive officer, stated, “While 2012 was a challenging year for console gaming, we focused on factors within our control. We expanded our market leadership position, maintained our financial strength and controlled our spending. Perhaps most importantly, we invested in our mobile and digital businesses to position the company for future success. These channels delivered as planned and significantly contributed to our highest ever gross margin and profitability.”

Overall, the company saw a 7% drop in total sales compared to 2011, and that trend isn't apt to change. More people are getting their games through digital channels, and we're likely to see iOS, Android, and Steam sales increase while GameStop flounders. Hopefully, the company can target a turnaround; it's a staple of a brand, and it's worrying to watch these losses mount.
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sevags replied on Fri, Mar 29 2013 11:39 PM

"Hopefully, the company can target a turnaround; it's a staple of a brand, and it's worrying to watch these losses mount."

Ray... um WHAT? Who on earth would want Gamestop to make a turnaround? no one but those in charge of the company. It is also not worrying at all. My friends and I are sitting here reading the article screaming "YES!" "finally!!!" and "good riddance". We hate Gamestop, I don't know anyone who likes gamestop including a former employee friend of mine.

Gamestop needs to go away, disappear, vanish from everyones minds, and that happening today wouldn't be soon enough.

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RWilliams replied on Sat, Mar 30 2013 4:26 AM

"Gamestop needs to go away, disappear, vanish from everyones minds, and that happening today wouldn't be soon enough."

I have a hard time disagreeing, but is there any company aside from Walmart at the moment that's a realistic competitor? I remember the days when Gamestop was actually fun to go to... hardly the case lately. Now we're all online, ordering our games and waiting for them to arrive. A little depressing...

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sevags replied on Sat, Mar 30 2013 11:53 AM

Why was GameStop ever fun? I have only ever purchased 1 game from them and it was a pre-order for the first World of Warcraft expansion. I have never seen a need to purchase anything there they remind me of the radio shack of the gaming world, useless. GameStop has never had a competitive reason to purchase new products from them I have always been better off purchasing games from even just best buy as I at least get rewards points there. They don't have anything unique, their selection isn't any better than Walmart, Target, toys r us, best buy, and their only advantage sometimes are the preorder "goodies" (because they aren't always good) you get.

Here in the San Fernando Valley in Los Angeles there is a place called Game Dude that's been open maybe 3 decades and it's everything GameStop should be but aren't. I've bough and sold games and systems there my whole life but transitioned to Craigslist a couple of years ago.

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