Leading US games retailer GameStop has reported flat sales for the nine-week holiday period ended January 2, 2010.
Total sales for the period were $2.86 billion, largely in line with the previous year’s performance.
While new software sales increased four per cent, driven by top sellers Call Of Duty: Modern Warfare 2, Assassin's Creed II, New Super Mario Bros. Wii, Left 4 Dead 2 and Dragon Age: Origins, hardware sales declined eight per cent due to recent console price cuts and a decline in unit sales on a year-over-year basis. Used game sales grew ten per cent, but this was “less than forecast”.
"Despite a kick start to this year's holiday selling season with several major title launches, sales momentum was impacted in December by economic weakness in all global operating segments, winter storms at peak shopping periods in December, and unexpected shortages of key products such as New Super Mario Bros. Wii, Nintendo Wii and Sony's PlayStation 3 consoles," said GameStop CEO Daniel DeMatteo.
GameStop updated its financial outlook on the back of the results, lowering its fourth quarter diluted earnings per share guidance to range from $1.25 to $1.29.
Chief financial officer Cathy Smith stated: "It is important to note that this is still the second highest earnings year in GameStop's history coming off a record fiscal year 2008. Our fiscal year 2009 projected EPS represents a 25 per cent growth over fiscal year 2007."
The company also predicted that “strong PlayStation 3 demand, an exciting title line-up” and "anticipated economic recovery, will all be factors that should drive software growth and therefore GameStop earnings in 2010”.