GameStop: Gap Growing Between Last-Gen and Current-Gen Sales
GameStop's new sales reports indicate that current-gen console sales are growing and last-gen sales are dwindling at faster rates than they were expecting.
IGN reports that GameStop has come out with some hard numbers indicating that current-gen consoles are taking the lead on all fronts over last-gen consoles. However, not only is current-gen beating last-gen hardware sales, but last-gen consoles are taking a bigger beating in sales than what was forecasted. While the PlayStation 4, Xbox One and Wii U exceeded expectations by almost $700 million for the year (their expected was $3.8 billion and they actually sold $4.5 billion), last-gen console sales declined even faster than anticipated not only for GameStop, but across the market.
Current-gen consoles weren't the only thing to do well for GameStop, though. Technology brands also came in pretty big with a huge increase from $62 million to $329 million in 2014. Current-gen software sales stayed where GameStop expected, reaching its $2.7 billion forecast. Unfortunately, last-gen software sales followed in the footsteps of its consoles, dipping well below where they should have been at — not only $800 million short, but also down 12 percent from the same period in 2013. GameStop's digital software sales fell more than a bit short at $100 million less than forecasted, and you can thank that to players buying digital games from the likes of Steam, GOG.com and Humble.
Despite the drop in digital and last-gen sales, GameStop still came out on top with global sales growth up 2.8 percent to $9.80 billion, with net earnings of $393 million up from $354 million in 2013.