Lower Video Game Sales Hamper Toys 'R' Us Q3

U.S.-based retailer Toys 'R' Us said its entertainment segment, which includes video games, was its weakest business during the quarter ended October 30, due to fewer software and hardware launches. Total sales for Toys 'R' Us were $2.7 billion for the quarter. The entertainment segment generated $278.1 million, or about 10 percent of the total. Year-on-year, the segment was down 15 percent. Weak video game sales during the quarter offset sales in the retailer's juvenile, core toys and learning categories. Toys 'R' Us said weak entertainment category sales were "driven by fewer releases of new software and video game systems." Total net loss at Toys 'R' Us grew to $93 million compared to a $67 million loss for the same quarter a year prior. The company said the loss was driven by an increase in selling, general and administrative expenses related to store expansions, and legal settlement expenses. This most recent reporting period does not include the major U.S. post-Thanksgiving holiday shopping rush in November. Q3 isn't the first period that Toys 'R' Us pointed to video games as the reason for hampered sales growth. In September, the that during fiscal Q2, gains were offset by "a slowdown in demand for video game systems, as well as fewer new software releases."