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Fallout 76 & Black Ops 4 Did Not Meet GameStop Sales Projections

Fallout 76 & Black Ops 4 Did Not Meet GameStop Sales Projections

The latest GameStop earning report revealed that two of the year's biggest releases failed to meet the company's sales projections. Both Fallout 76 and Black Ops 4 did not sell as well as the major video game retailer expected and Gamestop had some answers on why that could be.

CFO of GameStop, Rob Lloyd said that Black Ops 4 was "Not as successful as we had hoped." As for Fallout 76, the executive attributed the poor sales to the negative review scores the open world RPG received. "Obviously, you can see in the market what the Metacritic scores are around Fallout 76, and that's impacted its sell-through. I'll probably just leave it at that."

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Some of the big name sports games that were released also failed to meet the company's expectations in regards to sales. While Lloyd didn't mention any names, Madden NFL 19, Fifa 19, NBA 2K19, and NHL 19 were all released between August and September of this year.

It's Not All Bad...

Not all of the news from the earnings report was negative, though. According to the CEO, both Red Dead Redemption 2 and Spider-Man PS4 were GameStop's highest selling games. Even though Black Ops 4 did not meet their sales expectations, the game releasing in October instead of November helped boost Gamestop's overall games sales for the quarter by 10%.

GameStop's total global sales which include hardware, software, accessories, and more, rose by 4.8% to $2.1 billion for the quarter, which ended on November 3rd. New hardware sales rose 12.8% due to increased sales from PS4 and Xbox One. Games sales had a massive jump of 10.9% and accessories sales had the biggest gain of 32.6%. Despite these sizable increases, pre-owned sales dropped by 13.4%.

The company posted a loss of $488.6 million for the quarter, which compares to a profit of $59.4 million in the same quarter last year. GameStop says that this loss was attributed to an impairment charge that was worth $587.5 million that it paid as a result of the "sustained decline in the company's share price."

What's Next?

It seems as if the trend in gaming from physical to digital purchases is impacting GameStop in a big way. Physical sales and reselling were once the money maker for the games retailer, but now the company must focus on finding new ways of generating revenue in online markets. We'll be sure to keep a close eye on the future of GameStop, so be sure to keep checking back with GigamaxGames.com for all the latest information.

Source: https://seekingalpha.com/article/4225543-gamestop-corp-gme-ceo-shane-kim-q3-2018-results-earnings-call-transcript

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The Nintendo Switch May Not Make It Home for the Holidays

The Nintendo Switch May Not Make It Home for the Holidays

During a recent speaking event, CEO of Nintendo America Reggie Fils-Aime said that the company could not guarantee the availability of the Switch this Holiday season. As of now, the executive has elaborated further on what he meant by the statement.

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Source: http://bit.ly/2wSvh0h

Speaking to The Financial Times, Fils-Aime said that the console's supply chain was "complex" going on to say that there are multiple factors that could be considered "choke points." Some analysts in Japan are calling out Alps Electric in particular, who makes the necessary components for the Joy-Con controller system. Although, the CEO himself wouldn't clarify which parts of the supply chain were holding production back.

"There is not one choke point, there are multiple choke points," Reggie Fils-Aime explained. "I won't go into any more detail but it's not just one component. I'm going to make millions of these units to flow into the marketplace. But what I don't know is what the demand is going to be. And there is a potential that demand is going to outstrip supply." (http://bit.ly/2ePLXLc)

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Source: http://amzn.to/2ma0NS9

Keep Your Fingers Crossed

The executive moved on to say that the company wants to avoid any situation where a consumer wants a Switch and can't get one. But unfortunately, production realities and the extremely strong demand for the console are making it impossible for him to guarantee that everyone will get their hands on the system.

Fils-Aime finished the interview by stating "We don't want to have a consumer disappointed by not being able to get one for the holiday season. But managing that complex supply chain is a challenge," but this has left many Nintendo fans with the feeling that getting a Switch this year is almost hopeless.

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Source: http://bit.ly/2rc2DFA

Nintendo has previously stated their intention was to ramp up production this holiday season but it could prove difficult with suppliers creating issues with previously agreed upon terms.  Currently, the company has modeled 10 million Switch sales for the current fiscal year, which ends in March 2018. As for sales, the latest data shows that the console has sold over 4.7 million units worldwide.

Hopefully, Nintendo is able to increase production enough so that most can get the system but unfortunately not even the CEO can be overly optimistic. The holidays are typically rough on retail and new hardware usually sells the fastest. The bright side of the production issue is that this shows the Switch's growing popularity and how Nintendo is recovering after the disaster that was the Wii U.

Be sure to check back on Gigamax for the latest updates and details surrounding the Nintendo Switch and it's availability.

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Gamestop’s 2017 First Quarter Results Are In

Gamestop's 2017 First Quarter Earnings Report

Gamestop officially released their earnings report for the first fiscal quarter of 2017 and things are looking surprisingly good for the gaming retailer. The company showed that sales were up year over year which they credit to the "robust" sales of the Nintendo Switch.

Their total global sales were up to $2.05 billion, which is up 3.8% from last year while their comparable store sales were up 2.3%. Gamestop's international sales jumped an astounding 17.1%, but unfortunately their U.S. sales were down 2.3%. Thanks to the Switch releasing in March, their new hardware sales were up by 24.6% but new software was down 2.3%. Gamestop attributes the poor software sales to the overlap of major game release dates last year.

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The company's net earnings were down to $59 million from $65.8 million, but that doesn't mean the company was hurting everywhere. In particular, the company started to dabble in collectable sales which were up 39.1% to $114.5 million. Popular Pokemon collectibles are flying off the shelves and their purchase of 'ThinkGeek Inc' greatly expanded their stock of merchandise. Gamestop also said that their technology brand sales were up 21.5% to $201.4 million.

Gamespot Weighs In

Popular gaming news site Gamespot held a conference call with the company yesterday which offered some interesting information. Gamestop sold more copies of Legend of Zelda: Breath of the wild then they did Nintendo Switch consoles, they are also reportedly selling out of Switch's online before they even get to the warehouses. The retailer also stressed their continued support of VR as Playstation VR remains their Number 1 product, they also said that there will be more discussion surrounding VR at E3 this June. Gamestop had some more interesting talking points that you can find here over focused on Gamestop's report.

We here at Gigamax are excited to see more about this information on VR they are supposedly announcing at E3. With VR hardware becoming more popular in the industry, any news about the medium is highly anticipated. As expected, digital downloads seem to be cutting into their profits but not nearly as much as we expected. As always, make sure to keep checking back with GigamaxGames.com for more information on everything gaming industry related!

Source:

https://www.gamespot.com/articles/gamestop-talks-switchs-positive-impact-its-continu/1100-6450347/

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