GameStop Continues to Function as Used Game Store, Despite Record Quarter

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GameStopRetailer GameStop reported its financial results for its second fiscal quarter ended August 2, 2008.
For the quarter, GameStop reported net earnings of $57.163 million, compared with net earnings of $21.810 million in the same quarter the previous year. GameStop credited Grand Theft Auto IV, Metal Gear Solid 4: Guns of the Patriots, NCAA Football '09, Wii Fit and Battlefield: Bad Company as contributing the most to the quarter's record revenues.

As has been true in past quarters, used video game products provided GameStop with nearly half (49.7%) of its gross profit despite accounting for only 26.1% of sales. New video game hardware provided 6.0% of gross profit while used video game software provided 20.6% of gross profit. 33.1% of gross profit came from other products, meaning that used sales are still twice as valuable to GameStop as new game and new console sales. It's telling that this remains true despite a record quarter that included the release of Grand Theft Auto IV. Recycling games is better business than just retailing games.

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This page contains a single entry by Editor published on August 21, 2008 5:38 AM.

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