GameStop Digital Sales Surge In July

Mostly good news for the video game retailer. The month of July saw a 27% increase in digital sales to $134 million. Total sales however, slumped 11.1% to $1.55 billion, illustrating the dip that has persisted in game sales for months without any major titles in the first 2 quarters of 2012. Reuters:

GameStop Corp, the world’s largest retailer of videogame products, sharply reduced its sales forecast for this year as uncertainty grows around new releases for 2012 and the market continues to struggle.
Grapevine, Texas-based GameStop, which has been trying to stave off decelerating growth by selling electronics like tablets and digital video games, is now forecasting same-store sales in 2012 would drop 2 percent to 10 percent, compared with flat to a 5 percent decline previously…
“This change reflects the uncertainty surrounding consumer demand at the end of this cycle in spite of the strong title lineup in the back half of the year,” Chief Financial Officer Rob Lloyd told analysts on an earnings call…
Digital sales were up 27 percent from a year ago to $134 million, the company said.

 For its third quarter, GameStop is estimating a drop in comparable-store sales between 5 and 10 percent. GameStop has been able to handle the economic and video game industry downturn for the most part by diversifying and broadening their sales. Its focus remains on selling new and used games, but has also expanded sales on digital and mobile platforms. Sterne Agee analyst Arvind Bhatia mentioned it is the “worst year performance” that they’ve had in used game sales, and will continue to be until there is an uptick in new game sales.

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