Market

GameStop Continues Troubling Trend in Q3

Published

10 months ago

December 8, 2022

Anthony DiMoro

GameStop continues to see a dip in sales and Q3 data shows that the company is not showing that it can climb out of the troubling spot it has been in for the last few years, according to the company’s financial report.

The numbers demonstrate the financials for the three month period that ended on October 29th, 2022.

The numbers:

Net sales: $1.2 billion, down 8% year-over-year
Net loss: $94.7 million, down 10% year-on-year
Hardware and accessories: $627 million, down 6% year-over-year
Software: $352 million, down 19% year-over-year
GameStop’s net loss was down 10% compared to the same period last year, but still hit $94.7 million
Sales decreased across the board

In an earnings call (as transcribed via Seeking Alpha), Gamestop CEO Matt Furlong stated that the company would not provide “formal guidance at this time.”

“It is worth reiterating, however, that our goal is to achieve profitability in the near term,” he said.

“I want to finish by reiterating what we’ve said in the past. We’re attempting to accomplish something unprecedented in the retail sector. We’re seeking to transform a legacy brick-and-mortar business that was on the brink of bankruptcy into a retailer that meets customers’ needs through our stores, e-commerce properties and emerging sales channels. This path carries risk and is taking time, but it is the path we are on. With that said, GameStop is a stronger business today than at any time in the recent past.”

Market

Xbox Q2 Revenue Dips 13%, Game Pass Continues Growth

Published

8 months ago

January 25, 2023

Anthony DiMoro

Microsoft has reported declines in Xbox revenue during the three months ended December 31, 2022 with gaming revenues were down 13% and Xbox content and services revenues down 12%, but were offset by the growth of Xbox Game Pass.

The Xbox Game Pass subscription business has reported a record number of active players, reporting a record 120 million monthly active users across its gaming ecosystem.

Revenue: $52.7 billion (up 2% year-on-year)
Net income: $16.4 billion (down 12%)
Operating income: $20.4 billion (down 8%)

More Personal Computing (incl. Xbox) revenue: $14.2 million (down 19%)
Gaming revenue: Down 13%
Xbox content and services revenue: Down 12%
Xbox hardware revenue: Down 13%
Monthly active users (gaming): 120 million

The company said that a number of the declines were in line with expectations.

Console

Microsoft Gauging Interest in Xbox Game Pass Ad-Supported Tier

Published

9 months ago

December 20, 2022

Anthony DiMoro

Microsoft is reportedly gauging interest for an Xbox Game Pass ad-supported tier subscription with a new user survey exploring the potential addition of a $3 subscription tier that would provide more features and benefits.

According to Windows Central, the survey suggested that a potential $3 subscription tier offering come with features, such as allowing users to play new first-party Xbox titles six months after launch, and would include Xbox’s slate of exclusive titles as well.

Multiplayer and EA Access games would also be accessible in this new potential tier offering.

With Game Pass reportedly falling short of it’s target in growth, back in October, it makes sense that they are exploring new tier offerings.

Business

Riot Games Files Motion to End Deal with FTX

Published

9 months ago

December 20, 2022

Anthony DiMoro

Riot Games, the company behind such titles as League of Legends and Valorant, has filed a motion to end its deal with cryptocurrency company FTX following the epic collapse of the market, and FTX folding.

According to researcher Molly White via Twitter, the company attributed the decision to FTX’s filing for bankruptcy.

“There is simply no way for FTX to cure the reputational harm already caused to Riot as a result of the highly public disrepute wrought by the debacle preceding FTX’s bankruptcy filing. FTX cannot turn back the clock and undo the damage inflicted on Riot in the wake of its collapse,” Riot Games said, reportedly.

The two sides initially partnered up via an advertising deal in 2021 which would see Riot Games promote FTX’s brand in connection with its esports circuit, the League of Legends Championship series.

FTX owed Riot $12.5 million but so far has only covered $6.2 million of that balance during 2022, and in 2023 FTX would need to pay $12,875,000, with payments continuing to grow until the year 2028.

Riot Games also noted their criticism of the fall of FTX and arrest of FTX founder Sam Bankman-Fried as among the reasons that they decided to end the deal.