Support NeoGAF

[Draugoth]

GameStop released its financial results for the three months ended October 28, 2023, showing a dip in revenues, narrowed losses, and not much else.


Here's what you need to know:

The Numbers​

• Net Sales: $1.08 billion, down 9% year-on-year
• Net loss: $3.1 million, compared to a loss of $92.6 million in Q3 2022
• Hardware and accessories net sales: $579 million, down 8% year-on-year
• Software net sales: $321 million, down 9% year-on-year
• Collectibles net sales: $178 million, down 14% year-on-year

The Highlights​

GameStop's third quarter results continued the company's pattern of providing limited insight into its business, offering minimal context for the basic numbers it reports each quarter.


The company noted that its selling, general, and administrative expenses are shrinking, as they were equivalent to less than 28% of this quarter's revenues, compared to the nearly 33% they measured in the year-ago quarter.


Much like last quarter, GameStop also trimmed its net losses significantly, as it only lost $3.1 million compared to the $94.7 million it lost in last year's third quarter.


Beyond that, it said the only long-term debt it holds is a low-interest loan tied to the French government's pandemic response.


Once again, GameStop did not hold a conference call with investors and gave no outlook for its performance in the current quarter.

 

[Jigsaah]

This seems overall...positive, no? 1.08 billion in sales is much more than I expected. At least this is less damaging as I expected. I'm curious as to how they are adapting to an ever more digital future.

Also, with the latest news from Playstation getting rid of certain licenses...be it their problem or the provider's...I wonder if places like Gamestop make a bit of a comeback amongst people revolting against the way digital rights is being handled.

I used to root for Gamestop's demise...now I'm starting to think they are a necessary evil.

 

[ByWatterson]

Lower than what?

Did Blockbuster also have a down year?

 

[StreetsofBeige]

So metrics all dropped quite a bit (about -10% each) and they only lost $3M? Seems like whatever they got left is hanging on decently well.

 

[ShadyAcshuns]

Glad they've stopped the bleeding. I'm not a fan of some of their practices, but in this day and age we need them to help carry the burden of keeping physical games alive.

 

[Ceadeus]

Glad they've stopped the bleeding. I'm not a fan of some of their practices, but in this day and age we need them to help carry the burden of keeping physical games alive.

I wish they kept the legacy consoles. They used to trade and sale 6th and 7th generation!

 

[Happosai]

Glad they've stopped the bleeding. I'm not a fan of some of their practices, but in this day and age we need them to help carry the burden of keeping physical games alive.

I would say that as they're just about the only mass franchise store selling physical. However, my hometown in the Midwest had a local franchise competitor which usurped GS bigtime. If they rethought their marketing strategy and considered buying / reselling retro games & hardware; they'd certainly have a better competitor edge. Then again, that's an idea which GS corporate has rejected more than once.

 

[ShadyAcshuns]

I would say that as they're just about the only mass franchise store selling physical. However, my hometown in the Midwest had a local franchise competitor which usurped GS bigtime. If they rethought their marketing strategy and considered buying / reselling retro games & hardware; they'd certainly have a better competitor edge. Then again, that's an idea which GS corporate has rejected more than once.

Totally agree. Last time I was in my local shop they had a bunch of cheap toys everywhere and not enough game accessories. I wanna see N64s and Sega Saturns and Game Boys and a bunch of gaming memorabilia like in days of old.

 

[AREYOUOKAY?]

Well what do you expect when half the store makes it "ToyStop" instead of the things it's supposed to be selling which is poorly damaged looking games.

 

[Happosai]

Totally agree. Last time I was in my local shop they had a bunch of cheap toys everywhere and not enough game accessories. I wanna see N64s and Sega Saturns and Game Boys and a bunch of gaming memorabilia like in days of old.

I used to refurb NES consoles in bulk and resell below the used market value. I was not the only one doing this either. The supply of older consoles is there and the demand most certainly is too. You also have certain cart games or PS1 and Saturn (5th gen) era games which were more widely printed. The only danger that GameStop would certainly run into with that type of business would be if someone sells an original copy of something like Earthbound for SNES. It's easy to check low/mid/high-end for grading used games. However, GameStop being GameStop would likely default to high end and never end up selling things like that. The local stores I know usually price rare or expensive games like that mid-range to break even and not upset their buyers. Retro collecting is a pretty big deal in the gaming community and they really should have a go at it. I mean, in the lower 48 alone...how long would it take to stock up on a bunch of model 1 SNES' or MegaDrives with Sonic 2 (for the latter) and SM1 (for the former)? I should throw PS1 out there too just for the sake of used consoles having been printed in high numbers and their resale being extremely accessible.

Last time I was in it was similar. A few local GS stores used to have a lower shelve of previous gen games at marked down pricing. Those shelves now have something like Funko Pop toys? Pretty silly as I picture those bloated headed pieces of plastic depreciating in the not-so-distant future whereas older games are keeping high prices some 35-years after release.

 

[ShadyAcshuns]

I used to refurb NES consoles in bulk and resell below the used market value. I was not the only one doing this either. The supply of older consoles is there and the demand most certainly is too. You also have certain cart games or PS1 and Saturn (5th gen) era games which were more widely printed. The only danger that GameStop would certainly run into with that type of business would be if someone sells an original copy of something like Earthbound for SNES. It's easy to check low/mid/high-end for grading used games. However, GameStop being GameStop would likely default to high end and never end up selling things like that. The local stores I know usually price rare or expensive games like that mid-range to break even and not upset their buyers. Retro collecting is a pretty big deal in the gaming community and they really should have a go at it. I mean, in the lower 48 alone...how long would it take to stock up on a bunch of model 1 SNES' or MegaDrives with Sonic 2 (for the latter) and SM1 (for the former)? I should throw PS1 out there too just for the sake of used consoles having been printed in high numbers and their resale being extremely accessible.

Last time I was in it was similar. A few local GS stores used to have a lower shelve of previous gen games at marked down pricing. Those shelves now have something like Funko Pop toys? Pretty silly as I picture those bloated headed pieces of plastic depreciating in the not-so-distant future whereas older games are keeping high prices some 35-years after release.

I always see people coming in and asking for older stuff, and I used to go in there with a list of old gen things to try and find. It would totally shake the market up from those awful collectors who do it for the sake of gouging if GS went all in on retro.

 

[Northeastmonk]

I went inside the GameStop at the Mall of America and they barely had any games. You or I own what they did have, so the actual store itself was just novelty/pop culture centric type stuff. I could have skipped the store entirely. I don’t shop there, so it isn’t really a big deal to me.

I use to love their selection of PS1 games and the entire wall they’d dedicate for PS2. I don’t know what I would buy if I went there now a days. I’ve got so many better options to buy my games.

 

[EverydayBeast]

GameStop’s problem is being very specific to the current generation, would I send someone to their stores? You’re damn right to get the current games now.

 

[That Damn Kid]

My local store keeps adding more and more Funko Pops, that'll save them

 

[TheDreadLord]

Totally agree. Last time I was in my local shop they had a bunch of cheap toys everywhere and not enough game accessories. I wanna see N64s and Sega Saturns and Game Boys and a bunch of gaming memorabilia like in days of old.

Retro gaming is super expensive nowadays and people usually use eBay or other auction houses to sell stuff. Don’t expect to see anything like that in the near future. What they could offer is retro technical support, perhaps also selling mods to old consoles and things like that. They could also try to jump into the publishing market like LimitedRun and a few other.

 

[ShadyAcshuns]

Retro gaming is super expensive nowadays and people usually use eBay or other auction houses to sell stuff. Don’t expect to see anything like that in the near future. What they could offer is retro technical support, perhaps also selling mods to old consoles and things like that. They could also try to jump into the publishing market like LimitedRun and a few other.

Yeah, it's just a pipe dream. Still, I wish there was a better way to buy/sell/trade all the old good stuff than the options we have now.

 

[kiphalfton]

So metrics all dropped quite a bit (about -10% each) and they only lost $3M? Seems like whatever they got left is hanging on decently well.

Yeah, except they're running a fucking skeleton crew and closed down however many stores.

 

[alphachino]

Not surprising the losses have significantly narrowed along with a large reduction in sales YoY. They recently just pulled out of Ireland closing 35 stores nationwide after losing $40M there. They pulled out of other countries too... Switzerland being one of them I believe (don't quote me on that).

Pretty sure next quarter they're going to be a profitable company. Ryan Cohen is a remarkably shrewd businessperson. I really don't get the hate for GameStop. I've been shopping there for decades and never had any issues whatsoever. They're the last bastion of physical media for me and I'm really glad they look to be on the up and up and not going anywhere any time soon.

 

[Syphon Filter]

Glad they've stopped the bleeding. I'm not a fan of some of their practices, but in this day and age we need them to help carry the burden of keeping physical games alive.

gamestop is going out of business eventually, its just a slow death.

 

[ReBurn]

Lower than what?

Did Blockbuster also have a down year?

Lower than the same period last year

 

[ByWatterson]

Lower than the same period last year

 

[Deerock71]

Physical devotees...this is our Waterloo. Best Buy is closing up shop. Wal-Mart and Target curate selection. Better start circling the wagons around Gamestop, or reap the digital licences we'll earn.

 

[Topher]

That's how every financial earnings reports works. It is good news for Gamestop.

 

[Gambit2483]

 

[night13x]

I will celebrate when this company finally goes under. Ran by some truly evil people doing pretty evil things to their own employees (see gamestop employee subreddit).

 

[Buggy Loop]

• Net loss: $3.1 million, compared to a loss of $92.6 million in Q3 2022

That's a massive turnaround from 2022. This is a major tour de force in cutting costs and to stop massive bleedings. Their next pivot after that fat trim is e-commerce.

With $1.210 Billion in cash?

This motherfucking RC knows what he's doing

 

[March Climber]

Well what do you expect when half the store makes it "ToyStop" instead of the things it's supposed to be selling which is poorly damaged looking games.

The problem is, being half-toy shops is what these type of game stores used to be before GameStop came around. They would also be double the size to accommodate for the toys and games. Instead of doubling size, GameStop is simply cutting their already-small store in half.

I think GameStops can still live, but they need to not have so many stores next to one another(downsize a bit more in location) and they also need to treat it more like classic record/CD shops.

It should be something with a ton of older finds/gems for enthusiasts to enjoy their time browsing, hanging out, and buying video games. Instead the inside of a GameStop still feels too corporate, sterile, and commercial(with ads on every TV playing constantly and them trying to sell you subs).

 

[Gambit2483]

Physical devotees...this is our Waterloo. Best Buy is closing up shop. Wal-Mart and Target curate selection. Better start circling the wagons around Gamestop, or reap the digital licences we'll earn.

There's always Amazon...

 

[AREYOUOKAY?]

It should be something with a ton of older finds/gems for enthusiasts to enjoy their time browsing

While I don't know if you have any in your area Disc Replay stores does all that and more. If it wasn't for them my collection wouldn't be the size it was today no thanks to Gamestop and their genius hindsight of not selling retro games anymore. By the time they attempted to do that again it was too late and poorly done as expected so most of their stores don't even bother.

 

[THE DUCK]

How this company is still alive is beyond me.
Sales tactics akin to elite used car dealerships, and I do not mean that in a good way.

 

[mckmas8808]

So metrics all dropped quite a bit (about -10% each) and they only lost $3M? Seems like whatever they got left is hanging on decently well.

Did they fire a bunch of people?

 

[alphachino]

Did they fire a bunch of people?

In Ireland they did. 230+ jobs, and closed all their stores there at a [one-time] cost of $13M.

 

[DaGwaphics]

I still feel like they miss some opportunities when it comes to PC gaming. There aren't many MicroCenters around and BestBuy doesn't stock all that much, it leaves a hole for local purchases of custom built PCs and upgrade parts.

Though the retro gaming mentioned above could be another interesting option.

 

[saintjules]

Glad they've stopped the bleeding. I'm not a fan of some of their practices, but in this day and age we need them to help carry the burden of keeping physical games alive.

Agree. The mom and pop shops can't do it alone.

Everyone is/was giving shit to Gamestop, now they will be the ones saving physical mediums. Shit, even Best Buy will no longer carry physical media early next year.

 

[diffusionx]

I still feel like they miss some opportunities when it comes to PC gaming. There aren't MicroCenters around and BestBuy doesn't stock all that much, it leaves a hole for local purchases of custom built PCs and upgrade parts.

Though the retro gaming mentioned above could be another interesting option.

When I worked at EB Games in the late 1990s, we sold graphics cards. Then they got rid of them but yea they should probably bring them back. They tried to get into retro and it hasn't really worked, part of it is on their end but there's also a mismatch between what people expect in this market (and are willing to pay for) and what the company can do.

Anyway, gamers cheering on the death of this company always bothered me. They acted like GameStop's struggles were because they didn't get enough trade-in for their 3 year old FIFA game when in reality it was a simple matter of the entire market shifting beneath them, in a way they could not control. They lost like 50-75% of their customer base in a 3 year period. Now that hardware companies are in full control of the pipeline, are things really better than they were on 360?

 

[SmokedMeat]

GameStop should wise up and run sales on their digital PC games and let PUR users put their $5 rewards towards them.
As it is there’s little reason to shop there if you’re a PC gamer.

Amazon killing the ability to use Microsoft Rewards for Gamesstop (to get Steam cards) really killed what little usefulness I had for GameStop.

 

[StreetsofBeige]

Gamestop going risky.

They said in the earnings report they want to use their cash hoard to do stock investments instead of safer investments (like putting money into a 4% interest bearing kind of account).

I hope their finance department is good at picking stocks. lol