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GameStop stock drops on declining sales, despite new hardware

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GameStop's third quarter financial results show global sales are down for the quarter ended November 1, 2014, totaling $2.09 billion, compared to 2.11 billion over the same period last year. Net income fell to $56.4 million, as compared to $68.6 million during the third quarter last year.

Despite this overall decline, the company says that sales of new hardware rose 147 percent, adding that after a year on the market, the installed base of the Xbox One and PlayStation 4 is 73 percent larger than that of the Xbox 360 and PlayStation 3 after their first year of availability. GameStop's bread-and-butter pre-owned sales, meanwhile, grew by 2.6 percent over last quarter. Sales of mobile devices, a new focus for GameStop, grew by 125 percent thanks to "continued expansion and strong results" for the company's new Spring Mobile stores.

So, with all of this apparent growth, why the drop in sales? GameStop CEO Paul Raines pins the decline on Assassin's Creed Unity, which was delayed to November 11 earlier this year, meaning it couldn't be included in GameStop's third quarter results. Wall Street hasn't taken kindly to the news, with VentureBeat reporting that GameStop's stock has dropped by 13 percent.

In this article: financials, gamestop, q3, q3-2014
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