Nintendo Switch Drives GameStop's Q1 Sales To New High

Posted: May 26 2017, 7:29am CDT | by , in News | Technology News

 
Nintendo Switch Drives GameStop's Q1 Sales to New High
Photo Credit: Getty Images

GameStop benefits in a big way from the success of the Nintendo Switch.

Video game retailer GameStop is riding high on the success of the Nintendo Switch. The supply constraints of the Nintendo Switch have eased up a bit in past days. The current GameStop Nintendo Switch bundle is on sale for under $400. The Nintendo Switch with Neon Joy-Con bundle keeps being available since days now.

GameStop managed to have the highest availability of the Switch through its bundle offers since the release of the Switch on March 3. This has paid off for the retailer. New hardware sales increased 24.6% in Q1, driven by Switch sales.

GameStop operates more than 7,500 stores across 14 countries. The global sales increased 3.8% to $2.05 billion, resulting in consolidated comparable store sales growth of 2.3% (-2.4% in the U.S. and +17.1% internationally).

Paul Raines, chief executive officer, stated, “Our first quarter results reflect the power of our leadership position within the video game market and our ongoing diversification efforts. Our international operations were particularly strong, driven by robust sales of Nintendo Switch and Collectibles. Throughout 2017, our focus will continue to be executing our diversification strategy, exercising cost discipline and increasing our share in the video game market.”

GameStop's early bundles that sold for $500 have been criticized by video game fans. The bundles contained non-essential accessories. The shortage has though forced consumers to get these bundles. The supply regularly sold out, getting replaced by new bundle offers. The supply of Switch consoles has been good in past days. At same time we see the demand dropping as most early adopter found a Nintendo Switch in stock.

Nintendo is ramping up the production for the Nintendo Switch, but has not disclosed what the current production capacity per month is. The only number the company made official is the production volume over the next 12 months. The Nintendo Switch launched on March 3 and Nintendo sold over 2.74 million units as of the end of April.

10 million Switch consoles are planned to enter retail channels until end of April 2018. The demand for the Nintendo Switch will spike during the Holiday Shopping season 2017. Nintendo will set aside a large part of the Switch production during the next months for November and December. This stock piling will keep the Nintendo Switch in short supply during the next 5 months.

As Nintendo coordinated new Switch console shipment with the launch of Mario Kart 8 Deluxe, we expect the company to do the same for the next major Switch game launches.

There are also several new accessories coming on the market from Nintendo in the next weeks. See the full list of new Nintendo Switch accessories.

The Tracker by I4U News - Real-time online inventory tracker

Updated: 2017-05-29 03:05:21am

Offers

Nintendo Switch Neon Joy-Con Mario Kart Race and Charge Bundle
Store: Gamestop Price: $0 Availability: .$title.

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The Author

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Luigi Lugmayr () is the founding chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com.

 

 

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