GameStop: Console sales rise, new game sales plunge in shift to Xbox One and PS4

xboxoneVideo-game retailer GameStop this morning reported its financial results for the holiday season, with strong sales of the new Xbox One and PlayStation 4 hardware boosting its overall sales by 9.3 percent to $3.15 billion.

That’s not a big surprise. But one underlying trend in the numbers is worth watching: GameStop reported a decline in sales of new video games, with that portion of its revenue dropping 22.5 percent to $1.08 billion for the nine-week holiday period.

I know what you’re thinking: The result coincides with the expanded ability to purchase and download games, including new AAA titles, on both Xbox One and PS4 — allowing gamers to sidestep the traditional retail store. Both consoles also have expanded their selection of non-game apps and content, potentially reducing the demand for games.

However, in its financial report, the retailer said sales of software for the Xbox One and PS4 were actually strong. The company blamed the decline in new game sales on lower-than-expected interest in games for the old Xbox 360 and PlayStation 3.

“During this transitional console period, strong sales of next generation software were offset by a greater than expected decline in Xbox 360 and PS3 software sales resulting in a 22.5% decline in the new software category,” GameStop said in a news release.

Depending on your bandwidth and the size of the file, downloading a game requires some patience on the new consoles, in some cases needing to be left overnight.

Let’s get the pulse of GeekWire readers on this: If you’ve purchased an Xbox One or PS4, where are you buying your games? If you’re using an Xbox 360 or PS3, are you still buying new game discs for your console?

  • Renee

    I think the larger problem is the lack of new games out right now for the next gen consoles.

  • BetterMouseTrapHYPE

    what’s the point of these fancy new consoles when there’s nothing ground-breaking to play on them…sorry a super HD racing game or shooter doesn’t count as those are retreads with better graffics.

  • Nick Botner

    As a PS4 owner, I am waiting for better new games. I’ve played and finished Killzone, beautiful, but kind of boring. Now I spend my time playing other free games introduced in the PS Store.

    Actually when a new title comes out that I want to buy, I’ll probably just buy it in the PS store.

  • Daaruz

    Gamestop sucks if you want to buy new video games. Best Buy and Amazon are constantly having sales…and both will price match competitors. I haven’t seen next-gen video games go on sale at Gamestop in weeks. I’ve purchased DR3, BF4, Ghosts, and Killzone at Best Buy through price matches, and all between $40-50. Gamestop has priced those games at $60. For that price, I’ll go digital.

    Also, the trade-in values are higher at Best Buy.

  • EJ Gj

    Wouldn’t it make sense that if someone just spent several hundred$ on a new console that it may take them a few days, weeks or even months to justify spending on, or time to save up for the a purchase of, a new game? Seems to me a pinch premature to assume game sales are lower for any other reason given the billions spent last month on new consoles.