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GameStop Profits Despite Sales Drop, Shifts Focus to Collectibles and Online

Retail

Business Honor
12 June, 2025

GameStop posts profit through cost cuts and collectibles growth, despite falling software and hardware sales.

Despite reporting a decline in revenue for the first quarter of this year video game and electronics store GameStop was still able to make a profit. At $732.4 million, total sales were 17% lower than the previous year. Sales of hardware and software saw the largest drops, falling 31.7% and 26.7%, respectively. One positive development though was the more than 50% increase in collectibles sales.

GameStop reported a $44.8 million net profit despite the lower sales, compared to a $32.3 million loss during the same period last year. The corporation said that saving measures such as closing stores and withdrawing from several foreign markets, were responsible for this.

GameStop has been reducing the number of its stores; last year it closed around 600 of its sites in the United States. It is also leaving certain nations, including France, Italy, Germany and Canada. Although these adjustments resulted in impairment costs of over $35 million, they also improved overall operations.

In order to strengthen the link between its physical stores and digital sales, the company is currently concentrating more on its online platform. It aims to establish itself as a leading source for gaming and entertainment goods. Additionally, GameStop's gross profit increased by 3.4% as a result of its transition to higher-margin products like collectibles and used goods.

The firm intends to close further outlets in 2025, despite not releasing a projection or hosting an earnings call. It's interesting to note that GameStop has made crypto currency investments, purchasing over $500 million worth of Bitcoin in May. However, because of ambiguous restrictions in the crypto currency area, it just shut down its NFT marketplace. There may be further updates at GameStop's upcoming shareholder meeting on Thursday.