GameStop misses earnings target, used games make up biggest profits
[Image by moe_ on Flickr]
Despite 99 new stores, continued strong used game sales and better performance than the rest of the retail video game industry, GameStop reported less-than-expected earnings for this year's second quarter, and delivered a fall forecast lower than analysts expected. Analysts were looking for $1.82 billion in sales this past quarter, but apparently the $1.8 billion GameStop earned in actual sales (31.4 percent of which came from used game sales) just wasn't good enough.
Additionally, GameStop executives tried to convince analysts that they'd actually be saving money by spending $10 on a membership card and subscription to Game Informer, but analysts weren't interested, claiming that "all they wanted was to play Red Dead Redemption." Further attempts to sell the card also failed, despite assurances of 10 percent off used game purchases in the future.
