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Retail

Amazon blames profit drop on games "slowdown"

Mon 27 Jul 2009 11:48am GMT / 7:48am EDT / 4:48am PDT
Business

Online retailer's profits fall ten per cent; poor games performance contributes

Amazon

Amazon.com strives to be Earth's most customer-centric company where people can find and discover virtually...

amazon.com

Amazon.com has reported a profit fall of ten per cent for the financial quarter ending June 30, and blamed the under-performance on a "slowdown" in games sales.

"You're seeing an industry slowdown in videogames and consoles," said the company's chief financial officer Tom Szkutak.

The retailer's sales increased 14 per cent during the period, rising from USD 4.06 billion last year to USD 4.65, reports the Wall Street Journal. However, profit fell, from USD 158 million to USD 142 million; or from 32 cents to 37 cent per share.

Downward videogame and console sales were highlighted, however sales of media in various forms, including books and music, were also flat in North America. The profit fall was further impacted by USD 51 million paid out to retailer Toys R Us in a legal settlement.

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