Game sales weak for Toys R Us

Entertainment sector continues to decline for retailer

Retailer Toys R Us has revealed its holiday sales, noting that its entertainment category, which includes videogames, were weak over the Christmas period.

Sales of games continued to decline during the nine week holiday segment, said Toys R Us, despite overall US sales rising 5.4 per cent. International sales were down 3.6 per cent in December.

"The entertainment category, which includes videogame hardware and software, was the weakest as it continued to experience sales declines," said the company.

Yesterday, specialist retailer GameStop said it hit new records over the Christmas period, with over $3 billion in revenues driven by Microsoft Kinect, and new Call of Duty and Assassin's Creed games.

In the UK, entertainment retailer HMV had a poor Christmas, down 13 per cent on last year, forcing the retailer to close 60 stores over the next 12 months.

UK specialist GAME is due to release details of its holiday performance next week.

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Latest comments (5)

Miguel Melo Principal Software Engineer/Product Manager 7 years ago
If Toys'r'Us worldwide is anything like in Portugal it's not surprising. They have the most inflated prices in the market. Even their delete bins are ridiculous: they expect to sell things like N64 games (without a box!) for over 10 euros...
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I used to be the 'Games Adviser' in Toys R Us about 15 years ago! Even then their prices where way out of touch so I guess things haven't improved. I think they count on getting business from harassed parents who don't have time to shop around rather than actual gamers but of course online retailers make it easier for everyone to shop around.
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Alex Loffstadt Community Manager, Outso Ltd7 years ago
Having had to pop into TrU over Christmas the problems aren't just those of cost.

It's the selection of games
The layout of the shelves
Their general positioning within the store tends to jar as well

In general it all looks like it was set-up by someone who doesn't play games, and that they've been added to the product selection as an after thought because they feel they should have them but aren't quite sure why.

This may be understandable. The key demographic for TrU may be viewed as 13 and below which the majority of game content starts with the tweenagers and up.

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Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.7 years ago
They had some very impressive software deals over Christmas period which may account for the lost revenue.

Video game units and customer volume was probably up year on year as lots of hardware and software were sold out but the massive software deals had to erode a lot of revenue.
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Haven Tso Web-based Game Reviewer 7 years ago
The Toys R Us in Sydney sometimes have great deals but sometimes their prices were way too high, even for old games. They do have a good collection but the pricing is a bit weak as compared to other shops. For example their "Dante's Inferno" despite being on sale is still more expensive than other places like EB and Game. I think they need someone who really knows about the gaming market to devise a better strategy.
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