We were hoping Gamestop will maintain the good news streak but it isn't meant to be and is likely to remain that way throughout 2019, as the company reported a seriously worrying loss for the year 2018, amounting to as much as $673 million.
Gamestop's 2019 fortunes are in stark contrast to 2017, when the company raked in nearly $35 million. They were pretty quick to point out that fiscal 2017 had an extra week, although we honestly don't know why even bother.
The metric that matters is the one by which Gamestop turned a healthy profit into a loss that's uncomfortably leaning towards a billion dollars. And yes, in case you've been wondering, their fiscal 2018 report includes the Spring mobile sale, which earned them slightly more than their loss - $700 million.
According to the report, Gamestop took some substantial hits in the software department, gaming included, which dropped by 5 per cent year on year. Their software losses seem to be in line with the general trend of even your neighbours being digital if possible, and it seems that many products will soon be looking at boxed copies like on old vinyl - you only buy the stuff you really, really like.
Hardware sales took a 1 per cent dip, so no worries there, whereas the company's main business, selling toys, has jumped by 11 per cent in 2018. Gamestop ended up netting $707.5 million on toys, which is pretty impressive and
Nevertheless, modern businesses come with modern losses and Gamestop are no strangers to those, even if this one was the most severe they had to go through.
,Their CEO Rob Lloyd said that they're "pleased to have delivered fiscal 2018 results within [their] adjusted guidance range", so we guess Gamestop's leadership have long been bracing for impact here. We're having a tough time trying to explain the actual amount, but we're no experts, so moving on.
Gamestop recently announced their plans to enter the esports scene too, in an attempt to reinvent the company, which they obviously see as a lucrative opportunity. Well, maybe not that lucrative. Yet.