After years of record-breaking holiday sales, GameStop reports its second-highest holiday sales ever, citing economic weakness, item shortages and winter storms as reasons for the lack of upward momentum.
The 2007 holiday season saw GameStop sales up 35 per cent over the previous year. In 2008, they were up 22 per cent. This year, however, things remained relatively flat as far as GameStop's year-over-year holiday sales went, with numbers failing to surpass 2008's by a small margin. Indeed, the company reports sales of $US2.86 billion for the nine-week period ending on January 2, while last year's figure was $US2,856 million. I'm assuming they rounded up.
GameStop CEO Daniel DeMatteo brings on the excuses. "Despite a kick start to this year's holiday selling season with several major title launches, sales momentum was impacted in December by economic weakness in all global operating segments, winter storms at peak shopping periods in December, and unexpected shortages of key products such as New Super Mario Bros. Wii, Nintendo Wii and Sony's PlayStation 3 consoles."
We don't want excuses, sir. We want results! *slams fist on desk*
Apologies. Always wanted to say that.
Hardware sales decline 8 per cent during the period, which GameStop blames on recent price drops and the normal decline in year over year unit sales.
New software sales jumped 4 per cent, with Modern Warfare 2, Assassin's Creed II, New Super Mario Bros. Wii, Left 4 Dead 2, and Dragon Age: Origins the top five sellers during the holiday period.
I suppose they had to lose steam at some point. Now that all three consoles are firmly established, it's time for the software to shine. With many of the holiday season 2009 games coming out in early 2010, I expect GameStop will be making up for the low figures in the coming months.