Gamestop Reports Hefty 2018 Financial Losses

Gamestop continues to mimic the road of the defunct Blockbuster Video stores as losses continue for the company. The company released its financial numbers for the 2018 fiscal year and the losses were hefty. The company reportedly lost $673 million last year as the company continues to battle the digital sales era of video games. In the larger scope, this is only a 3% loss of the $8.29 billion in sales, but the company also profited nearly $35 million in 2017. These financials may also include the $700 million sale of its Spring Mobile AT&T chain.

With a change in business model, the focus included collectibles and the company reported an 11% gain in that department. Meanwhile, the core gaming business declined. What also isn’t going to help going forward is Sony recently announcing that it is pulling all digital sales and pre-orders from Gamestop going forward. “We are pleased to have delivered fiscal 2018 results within our adjusted guidance range, which included fourth quarter and full year sales growth across video game accessories, collectibles and digital,” GameStop COO and CFO Rob Lloyd said. “Excluding the impact of the 53rd week in fiscal 2017, new hardware sales for the year were in line with last year. As we think about 2019 and beyond, we recognize the challenges facing our pre-owned video game business and are prepared to address them as we continue to evolve our business model going forward.”