GameStop Announces Second Quarter Earnings, Used Products Perform Well

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GameStop reported its financial results for the second fiscal quarter ended July 29.
The game retailer reported net earnings of $3.18 million compared to net earnings in the same quarter the previous year of $7.90 million. The current quarter's earnings include $2.6 million of expenses related to the merger between GameStop and Electronics Boutique.

Used video game sales have been of continual concern to publishers, but comprise a significant fraction of GameStop's business. As a percentage of sales, New hardware provided 12.4% of sales, new software provided 33.6% of sales and used products (software and hardware) provided 36.8% of sales. However, used products are considerably more profitable. As a percentage of gross profit, new hardware provides only 4.8%, while new software provides 20.7% and used products provide 46.2%.

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