GameStop (NYSE: GME) has reported a 25 percent increase in sales during the second quarter of 2014 with total global sales of $1.73 billion as sales of Xbox One and Play Station 4 boosted the hardware sales.
The demand for consoles drove the increased hardware sales to 124.8 percent, while store sales increased by 21.9 percent. There has also been a 16 percent increase in software sales. GameStop chain of retail stores reports more sales of Xbox One and PS4 games than websites, retail stores and online downloads combined. Though it was speculated that GameStop future remains uncertain, the hardware and software sales of the company have seen huge growth.
“Our hardware and software market share continues to expand and is not at an all time high as we go into the critical holiday season,” said GameStop President Tony Bartel.
While digital downloads of game titles stand at 92 percent today from 42 percent in 2010 as reported by NPD, the trend of consoles offering digital downloads can affect GameStop’s revenue. The main reason for the company growth was due to highly popular titles like Ubisoft’s Watch Dogs and Nintendo Mario Kart. In the pre-owned sales of titles, the business reported 5.5 percent growth in Q2.
Chief Financial Officer Rob Lloyd stated that the second half of the year is filled with the release of exciting titles and products and the company hopes to capitalize on the opportunities. GameStop has reported $24.6 million profit compared to the net earnings of $10.6 million in the earlier quarter, a 134.6 percent increase. The diluted earnings of the rose to $0.22 from $0.09, a 144.4 increase from last year.
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