GameStop Reports 16.4% Year-on-Year Decrease in Total Global Sales During Holiday Period; Describes It as “Disappointing”
US retailer GameStop revealed the performance of the latest holiday period in an official press release, mentioning some of the games that did well, and the others that didn’t. However, overall, it was a “disappointing” period.
2.5 billion Dollars were spent globally during the period, which represents a 16.4% decrease compared to 2015’s numbers. Gamestop mentioned Titanfall 2 and Call of Duty: Infinite Warfare specifically as both suffered from “weak” sales, “significantly” impacting the store’s November sales.
We are disappointed with our overall results, but looking broadly, we did see continued growth in our non-physical gaming businesses and we expect this category to approach 40% of our earnings in fiscal 2016. As we look forward to 2017, we remain focused on our transformation plan, which includes growing our non-gaming businesses, right-sizing our global store portfolio by continuously evaluating non-productive stores for closure, and maintaining strong financial discipline, including reducing SG&A by $100 million by 2019.
Even with the release of multiple anticipated games, including Watch Dogs 2 and Dishonored 2, the holiday period still did bad. Can it mainly be due to bad games in general, the lack of good advertisement or the declining economy over the world?