GameStop Says Four Publishers Account for New Sales at the Retail Giant
Posted by Stephany on Thursday, April 3rd, 2008 at 11:41 am under Gamer Life, Portable, Games Industry, Game Consoles, Game Platforms, Games, Game Companies
Tagged: consoles, ea, Game Sales, gamestop, handhelds, Microsoft, new games, new hardware, nintendo, pc, Sony and used games
GameStop revealed that during 2007, four out of over 40 publishers brought in the most money for the sale of new titles. Nintendo, Microsoft, EA, and Sony were responsible for 65% of new product sales with Nintendo being the biggest earner with 21%, Sony at 17%, Microsoft 16% and EA bringing the retailer 11% of new sales.
Last year, the retail giant brought in a whopping $7.1 billion with net earnings of $288.3 million - but while new sales have a lot to do with those huge numbers, it’s the second hand market that brings in the most money for GameStop. That is no surprise considering the fact that they offer over 3000 used games compared with 1000 new ones.
Used game sales brought in $772.2 million and new titles generated $581.7 million, new hardware accounted$108.2 million and “other” products generated $351.6 million in sales. Although these numbers are indeed impressive, GameStop has admitted that digital downloads could eventually cut into their profits.
“While it is currently only possible to download a limited amount of videogame content to the next generation video game systems, at some point in the future this technology may become more prevalent. A limited selection of PC entertainment software and older generation video games is currently available for download over the internet. If advances in technology continue to expand our customers’ ability to access software through these and other sources, our customers may no longer choose to purchase video games or PC entertainment software in our stores. As a result, sales and earnings could decline.”
The average used game at GameStop costs around $16, with newer used titles being in the $45 range and if digital downloads continue to be popular, we may end up seeing more games in the bargain bin at the store. While that would not good news for GameStop, it will be good news for gamer’s wallets.
For more figures and other information on this, click through the link below.
Thanks: GamesIndustry.biz
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