Toy market news

GameStop leans into collectibles as video game sales slide

GameStop is continuing its unusual, no-nonsense approach to earnings season

The Texas-based specialty retailer known for its namesake video game business reported that its second quarter sales dipped around 4% to $1.136 billion this year, down from $1.183 billion in Q2 2021. As it’s done in recent quarters under the leadership of CEO Matt Furlong and Chairman Ryan Cohen, the company issued a bare-bones press release devoid of the typical PR fluff known to accompany such things.

On a lean, shockingly-short earnings call that lasted less than nine minutes, Furlong provided a high-level update on the business while acknowledging the work that’s been done to strengthen the company’s operations.

GameStop divides its current business into three primary sectors: Hardware and Accessories, Software, and Collectibles.

Of the three, collectibles is showing growth with Q2 sales growing to $223.2 million versus $177.2 million during the same period last year. Furlong says that the company is looking to grow its collectibles business in the long term as it seeks to further diversify beyond video games and into new initiatives like NFTs and Web3 projects.