GameStop not doing too well financially due to casual market.
According to a recent financial report from GameStop stated that mobile and online gaming is starting to pose a threat to the company’s business. GameStop is trying to find ways of to come up with a strategy that will benefit their new business model based of what’s been happening with digital and mobile gaming.
“Browser, mobile and social gaming is accessed through hardware other than the consoles and traditional hand-held video game devices we currently sell. If we are unable to respond to this growth in popularity of browser, mobile and social games and transition our business to take advantage of these new forms of gaming, our financial position and results of operations could suffer.”
“The company has been and is currently pursuing various strategies to integrate these new forms of gaming into the company’s business model, but we can provide no assurances that these strategies will be successful or profitable.”
For the last few years iOS, Free-to-Play and Mobile games have been taking over the casual market, which makes the competition more difficult. Retail companies are feeling very pressured by the current situation and are trying find ways to benefit from it in the long run.
The financial document also reported which game company was the most valuable, cooperative and helpful to GameStop.
“Our largest vendors worldwide are Sony, Activision, Nintendo, Microsoft and Electronic Arts, which accounted for 17 per cent, 16 per cent, 14 per cent, 13 per cent and 11 per cent, respectively, of our new product purchases in fiscal 2012.”
Last week GameStop has reported a loss of $269.7 million in fiscal year 2012.