Boston, MA, 03/30/2013 – The influx of smartphones and tablets into the market has had radiating effects on several industries and market segments. People are now accessing online applications for almost everything they need and even online games are becoming more popular than those which were initially played on video games. The world’s largest video-game retailer, GameStop Corp (NYSE:GME) (Current: $27.97, Up by 5.57%) is now moving its focus from its core business and turning its sights to mobile and digital products. This smart move has helped the company beat analyst estimates in the fourth quarter.
Its net income was $174.7 million or $1.27 per share a year earlier which rose to $261.1 million or $2.15 per share. Analysts estimates had been $2.09 per share and in a statement GameStop Corp (NYSE:GME) said that its net profit was $2.16 per share and this amount excluded impairment charges related to other assets and property. Its downtrend in its core business was offset amazingly well by its $100 million worth of mobile sales which boosted its digital revenue by 60 percent. The company is also launching a new console called Grapevine and “Grand Theft Auto V” will also be launched in the latter half of 2013 and has said that growth prospects for this period are very strong.
Waiting for the right season
The company said that there is a lot of curiosity amongst consumers about the new launch and that a large percent are postponing purchases in anticipation of it. There are other players in the console market who are active as well. The PlayStation 4 by Sony Corporation (NYSE:SNE) (Current: $17.40, Down by 1.36%) has been strategically positioned to hit the market by year end to catch the crucial holiday shopping frenzy and the “Grand Theft Auto V” by Take-Two Interactive Software, Inc (NASDAQ:TTWO) (Current:$16.15, up by 0.56%) will be on shelves by September. Currently, 50 percent of total game spending in the U.S is attributed to retail sales and this is where market expansion will be beneficial.