All the weekend’s news.
GameStop reports year-on-year drops for both revenue and income
Revenues for the last quarter (January 28), have fallen to $3.05-billion, down 13.6%, with adjusted earnings down 3%. Store sales in the US took a 20.8% hit, with the company fairing slightly better internationally, down 16.3%. Both hardware and software sales were both down, 29.1% and 19.3%, with digital sales also on the decline, down 7.7%. It wasn’t all doom and glom for the retailer with technology sales rocketing up 43.9% and collectibles jumping 27.8% with the introduction of dedicated stores such as Zing!.
CEO Paul Raines said, “GameStop’s transformation continued to take hold in 2016, as our non-gaming businesses drove gross margin expansion and significantly contributed to our profits.”
“Meanwhile, the video game category was weak, particularly in the back half of 2016, as the console cycle ages.
“Looking at 2017, Technology Brands and Collectibles are expected to generate another year of strong growth, and new hardware innovation in the video game category looks promising. As we continue our transformation plan, we will also be focused on managing (sales and administrative) spend, rationalizing our global store portfolio, and maximizing free cash flow generation to drive shareholder value.” Full story MCV UK.
Super Mario Run revenues dissapoint Nintendo
As the title launched on Adroid last week, Nintendo President, Tatsumi Kimishima stated the iOS version, “did not meet our expectations.” In contrast to the free-to-play model employed by Fire Emblem Heroes and Niantic’s Pokemon Go, Super Mario Run was built on a single $10 in-game transaction to open up the majority of its content.
Nintendo is currently lukewarm on the free-to-play model, with a senior company official stating, “Heroes is an outlier. We honestly prefer the Super Mario Run model.” Full story Games Industry.