GameStop Ups First-Quarter Profit20 May, 2010 By: Chris Tribbey
GameStop Corp., the nation’s largest video game retailer, May 20 reported first-quarter (ended May 1) net income of $75.2 million, an increase of nearly 7% from income of $70.4 million during the previous-year period.
Total revenue, spurred by a 13.3% increase in new game software sales, rose 5.1% to $2 billion — the first time Grapevine, Texas-based GameStop has topped the dollar amount in a non-holiday quarter.
Top sellers in the quarter included Battlefield Bad Company 2 from Electronic Arts, Sony's God of War III, Final Fantasy XIII by Square Enix, Pokèmon SoulSilver and HeartGold from Nintendo, and Take 2's Bioshock 2.
The results are noteworthy considering video game sales declined in April, falling 26% year-over-year, according to data from the NPD Group. Hardware sales fell 37%, software sales dropped 22% and accessories sales slipped 9%.
“By maintaining a sharp focus on our customer needs and overall business execution, our strong brick and mortar business continues to provide the capital needed to invest in new stores as well as execute our strategic plan to incorporate digital gaming into our global operations,” said CEO Daniel DeMatteo, in a statement.
Indeed, GameStop later this month will begin marketing and selling downloadable content in a group of test stores.