Nintendo Switch Drives Strong GameStop Q1 As Console Outpaces Wii Launch Sales
The Nintendo Switch has certainly garnered a lot of hype, but has it also been raking in the dough? According to GameStop, it sold 1.2 million Nintendo Switch units during the console’s first two months on sale. The Switch has now outpaced the Nintendo Wii, which is higher than the 1.1 million units GameStop reportedly sold in 2006.
GameStop’s global sales increased by 3.8% to $2.05 billion USD. Software sales declined by 8.2% and pre-owned sales decreased by 6.2%, however, hardware sales increased by 24.6% thanks to the Nintendo Switch. Worldwide omni-channel sales also increased by 92.9% because GameStop heavily promoted the Switch on all of its sales platforms.
Nintendo collectibles were also huge hits for GameStop. The company’s sales increased by 39.1% to $114.5 million. Pokémon related products in particular helped to drive sales. GameStop was able to add nine Collectible stores, bringing its total number to ninety-five stores worldwide.
GameStop CFO Rob Lloyd claimed that Nintendo Switch sales could have been even higher, if the company could have secured additional units. Company chief Tony Bartel noted, “Literally we have the product sold before they hit our warehouse. But we haven’t seen supply even come close to catching demand at this point.” Nintendo has promised that production will double thanks to the high demand for the console.
GameStop anticipates that the Switch will also lead to increased game trade-ins and sales. The company noted that many GameStop customers are trading in their old game consoles, particularly the Wii U, towards the purchase of a Switch. Bartel contended, “The form factor of the games lends itself very well to a trade-in model. So we anticipate there will be a high percentage of trades for these games.”
The company hopes that the popularity of the console will lead to more games. Digital sales grew 3.0% to $44.1 million, however, digital receipts decreased by 9.0% to $235.6 million. GameStop overall still relies upon physical consoles and games to maintain its business. The Nintendo Switch may be able to help GameStop to get out of the current rut.
You can check out our review of the Nintendo Switch here.
GameStop’s global sales increased by 3.8% to $2.05 billion USD. Software sales declined by 8.2% and pre-owned sales decreased by 6.2%, however, hardware sales increased by 24.6% thanks to the Nintendo Switch. Worldwide omni-channel sales also increased by 92.9% because GameStop heavily promoted the Switch on all of its sales platforms.
Nintendo collectibles were also huge hits for GameStop. The company’s sales increased by 39.1% to $114.5 million. Pokémon related products in particular helped to drive sales. GameStop was able to add nine Collectible stores, bringing its total number to ninety-five stores worldwide.
GameStop CFO Rob Lloyd claimed that Nintendo Switch sales could have been even higher, if the company could have secured additional units. Company chief Tony Bartel noted, “Literally we have the product sold before they hit our warehouse. But we haven’t seen supply even come close to catching demand at this point.” Nintendo has promised that production will double thanks to the high demand for the console.
GameStop anticipates that the Switch will also lead to increased game trade-ins and sales. The company noted that many GameStop customers are trading in their old game consoles, particularly the Wii U, towards the purchase of a Switch. Bartel contended, “The form factor of the games lends itself very well to a trade-in model. So we anticipate there will be a high percentage of trades for these games.”
The company hopes that the popularity of the console will lead to more games. Digital sales grew 3.0% to $44.1 million, however, digital receipts decreased by 9.0% to $235.6 million. GameStop overall still relies upon physical consoles and games to maintain its business. The Nintendo Switch may be able to help GameStop to get out of the current rut.
You can check out our review of the Nintendo Switch here.
