GameStop Is In Trouble. Or Is It?
According to Variety, GameStop sales are decreasing. They posted a net loss of $24.9 million for the second fiscal quarter. In case you don’t know, fiscal quarters map across the quarters of the year. Therefore, the second fiscal quarter of 2018 ran from April through June.
The reason why this is news is because GameStop is looking for a buyer. If GameStop isn’t a money-making factory, they’re unlikely to be bought.
However, the drop in sales isn’t necessarily a big deal, especially if you ask GameStop’s representative. According to chief financial officer and chief operating officer Rob Lloyd,
“Our second quarter results were in line with our expectations and highlighted by solid growth in new hardware, accessories and collectibles. As we enter the back half of the year, we are focused on preparing our organization, particularly our stores and associates, to deliver the best customer experience in the video game industry to support an exciting slate of titles launching this fall, starting tomorrow and through the holiday season. The anticipation around the upcoming video games across several franchises is extraordinary and we remain well positioned to leverage our industry-leading position to drive growth in the second half.”
It’s also interesting to note that something important happened during GameStop’s second fiscal quarter this year. Last year, CEO J. Paul Raines retired from the position due to health reasons. He subsequently passed away in March. His first replacement, interim CEO Michael K. Mauler left the position at the end of May. That means that the CEO position changed hands on June 1st. The current interim CEO is Shane Kim, and he used to work for Microsoft. It’s likely we’ll see if his influence had any when we see the statistics from the third fiscal quarter.
What do you think about this development? Who do you think is likely to buy GameStop? Talk about it in the comments!