GameStop Going Down – Retailer’s Revenue Dropping

GameStop’s not doing so hot.

The retailer’s yearly and quarterly sales are both lower than their previous cycles. Following the shift in preference toward digital distribution, the company is working toward becoming less of a physical retailer and more of a digital one.

There’s no denying that we buy digital copies of games more often than ever — and many gamers rely solely on services like Steam or Origin to get their fix. With physical copies of video games becoming less of a requirement and more of a bonus for fans or collectors, retailers like GameStop may be going the way of the dinosaur.

Both software and hardware sales plummeted in the company’s third fiscal quarter in comparison to Q2. Comparing 2012’s third quarter to 2011’s Q3 looks even worse: Sales are down 8.3%.

Though GameStop’s revenue is down overall ($1.95 billion in 2011 down to $1.77 billion in 2012), their sectors outside of physical software sales are actually up from last year. Digital software sales actually went up by 31.8%, and their mobile sector similarly grew.

They’re making the shift from physical retail now, but will they be able to compete with the big digital distribution platforms like Steam once they’re forced to completely go digital? We’ll see about that.

Source: GameStop continues to decline, despite boosted digital results