GameStop stock falls after delay of anticipated video game

GameStop stock falls after delay of anticipated video game

In stock terms, the net income for the retailer landed at 50 cents per share, a decline from last year’s 58 cents per share.

GameStop, the world’s largest video game retailer, reported less than desirable third-quarter profits last month, placing part of the blame on the delayed release of the highly anticipated game, Assassin’s Creed Unity. The release of Creed, an action-adventure game, developed by Ubisoft Montreal, delayed release from October 28 until November 11 due to necessary product updates.

According to the New York Times, the retailer had anticipated earnings of about $2.21 billion but missed that mark, instead earning only $2.09 billion. In stock terms, the net income for the retailer landed at 50 cents per share, a decline from last year’s 58 cents per share.

One reason for this is the fact that some high profile games, which were set to be released in 2014, have now been pushed forward to next year. Of course, Gamestop has more to blame than the release of Assassin’s Creed for its less than desirable returns. Sales for October were down as well due to the fact that highly anticipated releases, Destiny and The Evil Within, underperformed slightly as well.

Although GameStop experienced this drop, CEO Paul Raines, who just recovered from brain surgery, maintains a positive outlook for the retailer, stating, “as we look at the holiday quarter, we are focused on relentlessly applying our competitive advantages.” This means aggressively promoting the outlet’s popular buy-sell-trade formula as well as its PowerUp Rewards loyalty program. In addition digital sales are reportedly up 52 percent and the retailer is still reporting a hefty $56.4 million profit for the quarter.

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