Missed the GamesBeat Summit excitement? Don't worry! Tune in now to catch all of the live and virtual sessions here.
Retailer GameStop’s game is in better than expected shape for its third quarter.
The company reported $2.11 billion in global sales for the quarter, which is up 18.8 percent from $1.77 billion in Q3 2012. GameStop also reported a diluted earnings per share of 58 cents, which beat its guidance by 3 cents.
New software sales were one of GameStop’s key drivers. Grand Theft Auto V and other big fall titles helped increase new-game sales by 43.1 percent. Hardware did well at the retail chain as well. Nintendo’s 3DS and 2DS systems helped increase hardware sales at GameStop by 15.3 percent.
GameStop’s mobile and digital business — both still in their infancy — also grew year-over-year. The company’s mobile business rose 14.4 percent to $49.9 million and its digital sales grew 8.6 percent to $137.9 million.
Only GameStop’s used games slipped during Q3. The company noted that used sales were down 2 percent. That trend could reverse in Q4 when gamers could potentially resort to trading in old games and hardware to upgrade to the new Xbox One and PlayStation 4 consoles.
“Our strong third quarter sales results give us great momentum as we enter the new console cycle,” GameStop chief executive officer Paul Raines said in a statement. “Consumer appetite for the new consoles is very strong judging by last week’s successful PS4 launch and the excitement for tonight’s Xbox One launch event. Globally, we are executing our unique playbook to maximize our position of strength.”
Going forward, GameStop is raising its full-year guidance from a range of $3-$3.20 to $3.08-$3.27. The company also advised a range of $1.97-$2.14 diluted earnings per share for Q4.
GamesBeat's creed when covering the game industry is "where passion meets business." What does this mean? We want to tell you how the news matters to you -- not just as a decision-maker at a game studio, but also as a fan of games. Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it. Discover our Briefings.