GameStop sales down 3.1%, digital sales up 69%

GameStop has reported a 3.1 percent drop in sales to $1.74 billion during its second quarter. Profit came in at under $10 million from $40.3 million to $30.9 million for the quarter. The firm attributed the sales decline to slow hardware sales and a lack of new software releases compared to July 2010.

The software decline GameSpot noted was mentioned by NPD in its latest industry report. The best-selling games for the firm's Q2 were: L.A. Noire, NCAA Football 12, Infamous 2, Brink, and Mortal Kombat. New hardware accounted for 7.5 percent of gross profit or $20.8 million, and new software sales accounted for 22 percent or $132 million.

Despite the physical sales decline, GameSpot reported a 69 percent increase in digital sales, which accounted for 41.7 percent or $98 million of the firm's profit.

The firm also reported 12 percent increase in its used sector with hardware and software accounting for 46.2 percent of gross profit or $292.4 million. Used sales made up 36.3 percent of sales, compared to 34.4 percent from new software, 15.8 percent for new hardware and the category containing digital accounting for 13.5 percent.

"GameStop's resilient retail model enabled us to achieve our earnings plan despite a challenging period for the industry," said CEO Paul Raines. "Through the back half of the year, we expect industry software sales to accelerate based on an exciting title line-up. Meanwhile, the digital and loyalty programs we have brought to market continue to gain traction with consumers and position us as a leading partner with publishers."

Thanks, GI.biz.