GameStop profits fall as current-gen winds down

Fewer new retail releases from game publishers contributed to a quarterly drop in sales and profits for leading specialist retailer GameStop, which continues to try to transition to an online landscape. CEO Paul Raines said, "We continue to see solid sales growth as well as strong margins in our new retail offerings and digital channels. We are focused on staying ahead of the curve as the competitive landscape evolves and we manage through the trough of the console cycle." GameStop said it expected the drop in sales, due to a sparser release slate for new video games. The slower traffic also impacted preowned sales, which dropped 11.2 percent. GameStop's total revenues for the July quarter were $1.55 billion, down 11.1 percent compared to the same quarter a year ago. Profits dropped 32 percent to $21 million. As the retailer introduces new digital-based businesses such as downloadable content sales and preowened mobile hardware, it also waits for Nintendo's next console, the Wii U, which will kick off the next generation of game consoles this holiday.