Video Games Offset Falling Movie And Software Sales For JB Hi-Fi

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It's been a good year for games sales. Aussie retailer JB Hi-Fi has just announced that while software sales at the electronics retailer are down for the first half of 2018-19, particularly sales of movies, it's being "partially offset" by growing sales of video games.

The company's half year results were published earlier this morning, and the overall news is pretty good: overall sales rose 10.8% to $2.48 billion, while the company's gross profit rose by 9.8% to $545.3 million.

The main drivers for the half-year performance was a 13.5% bump in hardware and services, which JB defines as "all sales excluding" music, movies and game software sales. Software sales continued their slow decline, as has been the case for a number of years, falling 6.5% compared to the first half of FY2017.

The decline, however, could have been worse. JB's report to the ASX notes that the fall was "partially offset by growth in the Games Software" category, and the company's online sales rose by 40.6% as well.

It's a positive result for gamers, given that just a few years ago local retailers were considering the prospect of reducing their stock of games in-store. But the continued excessive pricing of games through digital storefronts - console games, particularly AAA titles - has meant stores like JB, Target, Big W and EB Games have remained competitive. It also means we should expect JB to continue offering lots of solid bundles and sales for games throughout the rest of the calendar year.

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Comments

    Eagerly awaiting the next decent Switch deal :)

      I personally believe that Easter will be a good time to pick one up.

      If you can hold out, EOFY in June will be the next big one. EOFY is my Christmas. :D

    I buy from JB if I can’t find a good digital deal.

    Amazon are matching their prices pretty closely, but not beating them.

    I used to buy all of my games at JB, but since my disk drive broke in my PS4 it is digital only for me. I miss the day one prices of $69 instead of $99 on the PSN store. Still brings tears to the eyes to pay full price. I wish digital was a bit more competitive for day one prices.

    I used to buy all of my games at JB, but since my disk drive broke in my PS4 it is digital only for me. I miss the day one prices of $69 instead of $99 on the PSN store. Still brings tears to the eyes to pay full price. I wish digital was a bit more competitive for day one prices.

    So increased software sales are offsetting falling software sales? Unless by “video games” you’re referring to hardware sales related to games consoles etc?

      JB lumps music, movies and games all under software. Overall software sales decreased but games software specifically had an increase

      Last edited 12/02/18 1:00 pm

    Can a retailer somewhere dish out a good PS VR deal again like last year? Paying $550 for something that was $350 last year is a bit rough. I know its a new iteration, but it is essentially exactly the same.

      Im in the same boat, wanting to get PSVR but not willing to spend 550 on it.

    JB Hi-Fi you've really done it again. Although your software sales are falling at a slow decline. I'm very happy that you're video game sales have risen to $2.48 billion dollars and that your online profits have risen by over 40%. That's very good news JB Hi-Fi how you're smashing prices on video games to ensure I get a good deal on the latest Nintendo Switch games and yet JB Hi-Fi I will continue shopping at your stores for many years to come to ensure I get a great smashing deal not only on the latest Nintendo Switch games but also on the latest 4K UHD Blu-Ray movie titles including crazy deals on Mum favourite show Utopia.
    I'm not going to say it again JB Hi-Fi but JB you've done it again.

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