GameStop Reports Net Losses In Q2, Reaffirms Possibility Of Sale

GameStop’s struggles in a changing video game marketplace continued in the second quarter of the company’s fiscal year, which ended on Aug. 4. The brick-and-mortar retailer posted its second quarter earnings report on Thursday, revealing losses and re-confirming an earlier announcement that GameStop may sell to a third party.

Global sales decreased by 2.4 percent for GameStop in the second quarter, which the company said was in line with its projections. Hardware sales, which covers sales of video game devices like the PlayStation 4 and Nintendo Switch, went up by 20.1 percent. However, sales of new games went down by 18.5 percent.

That last figure can be attributed to the fact that the video game industry typically does not launch major new titles in the summer. Instead, there is usually an influx of big releases starting in August. The newest “Madden NFL” game launched after GameStop’s Q2 ended, kicking off the 2018 holiday release season.

“Marvel’s Spider-Man” launched on PS4 on Friday to positive reviews and heavy audience anticipation. A limited edition PS4 system based on the game may give GameStop a boost in the current quarter. Other upcoming releases include heavy hitters like “FIFA 19” and “Battlefield V.”

Still, GameStop reported a net loss of $24.9 million for Q2. The company’s earnings press release confirmed once again that GameStop is exploring a sale in the near future. GameStop first announced the possible sale back in June.

“As our teams prepare for a busy and exciting holiday period, our board of directors, with the support of our financial and legal advisors, continues to conduct a comprehensive review of strategic and financial alternatives, including, but not limited to, a potential sale of the company,” GameStop board executive chairman Dan DeMatteo said in a statement.

GameStop’s future has been in flux for several years due to shifting industry trends. All three major consoles, as well as personal computers, now allow players to purchase and download games over the internet instead of requiring discs to play. Since the games are priced the same either way, players have largely opted for convenience.