US videogames retail giant GameStop has posted its first quarter financial results, showing a rise of 13 per cent in profit and revealing strong hardware and software sales for Xbox 360.
Profit was posted at USD 11.7 million compared to USD 10.3 the previous year, and revenue more than doubled to reach USD 1.04 billion despite a decrease of 3.3 per cent on comparable store sales.
R. Richard Fontaine, chairman and CEO, commented: "Our exceptionally strong results this quarter are due primarily to the improved flow of Xbox 360 hardware, early acceptance of the USD 59.99 price point for next generation software, and the successful completion of key integration strategies between GameStop and EB Games."
The positive performance, which bucks a depressing trend for the videogames industry as the hardware transition impacts heavily on the market as a whole, has been largely attributed to strong sales of Xbox 360 hardware now that Microsoft has resolved its component shortages and boosted retail supply.
Additionally, high profile next-gen software titles such as Bethesda's Elder Scrolls IV: Oblivion and Ubisoft's Ghost Recon: Advanced Warfighter have made significant contributions to the retailer's first quarter balance sheet. Current generation software has also played its part, specifically Square Enix' Kingdom Hearts II, which has quickly become the top-selling PS2 title in the US for the quarter.
GameStop is projecting a stronger performance during the second quarter as more key titles for next-gen systems are released and the company continues to implement its best practice and overall restructuring following the merger with Electronics Boutique.
"While there is more work that needs to be done to fully complete the merger, we have concluded many critical facets of the integration," Fontaine stated.