Nintendo Switch drives Gamestop hardware sales

The Nintendo Switch had a direct affect on retailer Gamestop's quarterly earnings.

45 seconds read time

Nintendo's new Switch handheld-hybrid continues favorable momentum for both the Japanese games-maker and retailers like Gamestop.

Nintendo Switch drives Gamestop hardware sales |

In its third quarter earnings Gamestop confirmed that the Switch helped drive total net sales for the period ending October 28, 2017 to almost $2 billion. The console had a dramatic effect on the retailer's new hardware sales, which made $309.5 million during the quarter, up 8.8% year-over-year. This growth coincides with sales reports that the Switch was the best-selling console in September and October. In fact, new hardware sales for Gamestop made up 15.6% of total net sales earnings, up 1.1% YoY.

While not explicitly mentioned, it's very likely that the Switch's new hardware sales also helped boost software sales for the retailer, which pulled in over $649 million, up 5.4% year-over-year. By Nintendo's internal estimates the Switch has a software attach rate of 3.6%, meaning most Switch owners have at least 3 games to play on the system. Software is by far and large the lion's earner for Gamestop, accounting for a mighty 32.7% of total net sales earnings.

During the 3-month period Gamestop reported gross profit of $689.4 million, mostly driven by software sales but new hardware sales also had a direct impact.


Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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