GameStop new software revenue falls 6%, missing estimates

GameStop, the world's largest video-game specialty retailer, reported fourth-quarter revenue that missed analysts' estimates. New game software sales slid 6 per cent in the year ended in January, GameStop said. Fewer big games are being released in the period compared with a year ago, when Battlefield Hardline and Mortal Kombat X were on shelves.

GameStop has diversified into other merchandise such as mobile phones to counter the slump in games.

"What we're excited about is that we built a diversified business that has allowed us to protect our earnings and revenue when our software sales have come down," chief financial officer Rob Lloyd said.

GameStop’s sales have been languishing as videogame publishers such as Electronic Arts push consumers to buy games directly on their videogame consoles instead of at stores.

Software sales will probably decline 5 per cent to 10 per cent this year while hardware sales slump 10 per cent, the company said. GameStop has tried to tackle digital head-on by selling downloads from its website and in stores. Such sales topped $1 billion for the year just ended. – (Bloomberg)