The popular video game retailer released its second quarter earnings figure for 2014, which displayed a net global sales increase of 7% for the first quarter. 3% of that increase came from their technology brands. In the U.S., the electronic gaming industry was nearly a $13 billion market for 2013, which excluded pre-owned sales of video game products. The digital content market had a huge stake in the electronic gaming industry market with approximately $7.2 billion for 2013.
There was a total of $190 million digital receipts for the first quarter of 2014. The 9.5% growth in digital sales stemmed primarily from PlayStation 4 and Xbox One digital sales and the international digital sales for PC. In net sales, there was only a 2.4% accountability for the digital segment for 2013. At the same time, digital sales took a larger stake of the gross profit percentage with 68.5% for fiscal 2013, from 58% in the fiscal of 2012. The increase came from the transition of digital currency cards to commission only cards for currency.
With the growth and expansion of opportunities within the technology sector, GameStop has made the move to place majority of their focus on the technology brands. After adding the technology brand segment during the fourth quarter of fiscal 2013, there was an increase of almost $63 million in net sales for 2013’s fiscal year. The same type of response was noticed for the first quarter sales of 2014, where the segment had higher margins from aggressive wireless promotions. There was a 40 point basis increase to 31.4%, year over year, which ultimately extended GameStop’s gross margins.
GameStop still doesn’t have a major impact in Technology Brands and Digital Sales Segments, but they plan to change this in the next few years. Digital content in video game sales is expected to have a major influence in the future of the video gaming industry.