GameStop continues to get dragged down financially by its physical retail presence, even as it continues to shift towards digital markets. Hardware, software, and even used sales all declined in 2012, and the only business category to show growth was GameStop’s “other” category, which covers those digital markets.
From the CEO himself:
“While 2012 was a challenging year for console gaming, we focused on factors within our control,” said CEO Paul Raines in a statement. “We expanded our market leadership position, maintained our financial strength and controlled our spending. Perhaps most importantly, we invested in our mobile and digital businesses to position the company for future success.
Raise your hand if you think GameStop is crossing off the days on their calendars until the next console launches:
“As we look towards the start of the new console cycle, our industry market model indicates a return to growth with the launch of new game systems. GameStop is strong, healthy and ready to lead the industry and its customers into the next phase of gaming.”
GameStop isn’t going anywhere, but a quarter of a billion dollar loss for 2012 shouldn’t sit well with anyone under that company’s roof. Will they be able to complete a successful pivot to the digital market in time, or will they end up like that neighborhood video rental store that we all (or maybe some of us) grew up with? What was the name of that place? Oh yeah: Blockbuster.
Post your thoughts below, if you’re qualified!